Understanding how and when a tenancy can be ended is one of the most important aspects of renting—whether you’re a landlord or a tenant. The Renters’ Rights Bill 2024-25 has brought sweeping changes to the private rented sector, and the traditional “break clause” is one area that’s seen a major shift. Here’s what you need to know, explained in plain English.

Why Does the Break Clause Matter?
Break clauses used to give both landlords and tenants a way to end a fixed-term tenancy early, often after six months. With the new Bill, the landscape has changed, and so have your rights and responsibilities.

Periodic tenancy meaning?

A periodic tenancy is a rental agreement that continues on a rolling basis—usually month to month—rather than for a fixed term. Either the landlord or the tenant can end the tenancy by giving proper notice, typically one month for tenants and two months for landlords. The tenancy automatically renews at the end of each period unless notice is given.

For Landlords

• Section 21 “no fault” evictions are gone. Landlords can no longer use a break clause to end a tenancy without a specific reason.

  
  

• If you want to end a tenancy, you must rely on statutory grounds—such as serious rent arrears, wanting to sell the property, or needing to move in yourself.

  
  

• Periodic tenancies are now the default. This means most tenancies will roll on a monthly basis, and fixed-term contracts with traditional break clauses are being phased out.

  
  

• Any break clause in a new tenancy agreement must comply with the new law and cannot override the Bill’s protections for tenants.

  
  

• Attempts to bring back Section 21 or fixed terms for small landlords were debated but not included in the final law.

For Tenants

• Tenants now have greater security. Landlords can’t use a break clause to end your tenancy unless they have a valid statutory ground.

  
  

• You can still end a periodic tenancy by giving notice—usually one month. You’re not tied to a fixed-term break clause.

  
  

• The Bill doesn’t stop you from leaving, as long as you give the required notice.

  
  

• There’s no rule forcing you to forgo your last month’s rent if your landlord serves notice to move in or sell, even though this was suggested during debates.

What Does This Mean for You?
If you’re a landlord, you’ll need to familiarise yourself with the new statutory grounds for possession and update your tenancy agreements. If you’re a tenant, you can feel more secure in your home, knowing you can’t be asked to leave without a good reason.

Thinking of ending a tenancy or worried about your rights? Take time to understand the new rules—being prepared is the best way to avoid surprises and disappointment.

If you have a particular situation or want to know how to end a tenancy under the new rules, chat to Caira 24/7 for clear and easy to understand support.