Break Clause
A clause in a fixed-term tenancy that allows landlord or tenant to end the agreement early. With fixed-term ASTs abolished from 1 May 2026 for most residential tenancies, break clauses are rarely relevant, a tenant can instead end a periodic tenancy with two months' notice.
At a glance
- Relevance (England)
- Rare for residential lets from 1 May 2026
- Tenant exit
- 2 months’ notice ends a periodic tenancy
- Still used in
- Commercial + company lets + niche FTT scenarios
Full guide
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Open full guideWhy Break Clause matters for landlords
Break clauses were the standard safety valve inside a 12-month AST, giving either party a contractual early-exit right. With fixed-term ASTs gone for most residential lets in England, a tenant can end a periodic tenancy with two months’ notice at any time — the legal mechanism the break clause used to perform. Landlords who copy old template clauses into new assured periodic agreements are drafting around a regime that no longer exists; the risk is that outdated language causes confusion at end-of-tenancy.
Official sources
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Related terms
Joint Tenancy
A tenancy where two or more tenants are jointly and severally liable for the rent and obligations. If one tenant leaves, the remaining tenants are liable for the full rent. A notice served by one joint tenant can end the tenancy for all.
Periodic Tenancy
A tenancy that continues from period to period (usually monthly) with no fixed end date. From 1 May 2026 all assured tenancies in England are periodic by default under the Renters Rights Act 2025. Tenants can end the tenancy with two months' notice.
Renters Rights Act 2025
UK legislation that received Royal Assent in 2025 and came fully into force on 1 May 2026. Abolished Section 21 no-fault evictions, converted all ASTs to periodic tenancies, extended the Decent Homes Standard to the PRS, introduced a private rented sector database and gave tenants the right to request pets.
Written Statement of Tenancy
Under the Renters Rights Act 2025, every landlord must give a new tenant a written statement of tenancy terms before or at the start of the tenancy, containing core information such as rent, deposit, landlord details and repair responsibilities.
BTL (Buy-to-Let)
A mortgage product and business model where a property is purchased specifically to rent out. Buy-to-let landlords are subject to Section 24 of the Finance Act 2015, which replaced mortgage interest relief with a 20% tax credit. Stamp duty is higher on a second property.
Accelerated Possession
A fast-track court procedure used under a Section 21 notice in England and Wales. Abolished for new claims from 1 May 2026 because Section 21 no longer exists. Possession is now pursued under Section 8 using a specified ground.