Contract-holder's Notice
Early termination by contract-holder
A contract-holder may end the occupation contract at any time before the earlier of-
- the landlord giving the written statement, or
- the occupation date.
If a contract-holder wishes to end the contract early, they must notify the landlord stating that they are ending it.
On giving the notice, they cease to have any liability under the contract and become entitled to the return of any deposit, rent or other consideration given to the landlord by the contract (s.152).
Termination by agreement
The landlord and contract-holder can agree to end the contract anytime (during a fixed term and periodic).
The contract ends when the contract-holder gives up possession of the dwelling by the agreement (s.153).
Contract-holder's notice
If joint contract-holders are under an occupation contract, the contract cannot be ended by one or more acting without the other joint contract-holder or joint contract-holders (s.231).
A contract-holder may end a periodic standard contract upon written notice to the landlord (s.168). Where there are joint contract holders, the notice must be from all of them (otherwise, it is treated as a withdrawal notice, see that section).
There is no right to give notice during a fixed term. Nor can notice be given during the fixed term to expire when the contract may become periodic.
The notice must contain a date when they will give up possession, and the date may not be less than four weeks (s.169).
It would seem that the old common-law rule of a tenant's notice being at least the length of a rental period (up to a maximum of six months) and expiring the day before a rent day (or on a rent day) is gone.
The four-week notice can be given anytime during the periodic and can expire on any day.
The term is fundamental, so you cannot modify it unless it would improve the position of the contract-holder (so it could be changed to be less notice, for example).
Any converted tenancy agreements with a term requiring longer than four weeks will be unlawful. Any written statement provided for a converted tenancy must contain the fundamental term.
Invalid notice
Where a notice is invalid (for example, only three weeks long), the parties can agree that the contract will end (see earlier under termination by agreement).
However, if the landlord disagrees, the contract-holder must give proper notice to be valid.
There is no prescribed form for a contract-holders notice.
Withdrawal of notice
The contract-holder may withdraw the notice before the contract ends by giving further notice to the landlord. If the landlord does not object to the withdrawal before the end of a reasonable period, the notice ceases to have effect. If the landlord does object in writing, the notice continues to have effect (s.172).
Contract-holder fails to leave
Suppose the contract-holder fails to give up possession of the dwelling after the date specified in their notice. In that case, the occupation contract continues. This is different from before the changes when the tenancy would have ended, and the tenants would have to be treated as trespassers.
There is a specific ground for possession for landlords to use where a contract-holder gives notice and fails to leave.
To obtain possession under section 170 ground, the landlord must give the contract-holder a possession notice specifying that ground (s.171).
There is a prescribed form for this notice ("RHW23").
There is no length to the notice because the landlord may make the possession claim on or after the day the landlord gives the possession notice (s.171(2)).
You must give the possession notice within two months of the date specified in the contract-holder's notice as the date they would give up possession.
A court order must be applied for, which must be done within six months of giving the possession notice. The accelerated possession procedure can be used for this claim.
If proven, the ground is mandatory; the landlord will obtain possession if everything is confirmed.
When the occupation contract ends
If the contract-holder gives up possession by the date specified in the notice, the contract ends on that date (s.172(1)).
If the contract-holder gives up possession after that date, but in connection with the notice, the contract ends the earlier of –
- the day they give up possession, or
- if an order for possession is made, when a bailiff executes the order (s.206).
Return of overpaid rent
You must include a supplementary term in the written statement (regulation 9)-
The landlord must repay, within a reasonable time of the end of the occupation contract, to the contract-holder any pre-paid rent or other consideration which relates to any period falling after the date on which the contract ends.
As the term is supplementary, it can be changed by the agreement of all parties even if the position of the contract-holder isn't improved. But, you must show changes made in the term (showing the original and the modified version – see written statements).
Delivering notices
All notices and other documents under the Act must be in writing (s.236(2)).
The notice may be delivered by hand, left at or posted to the landlord's address or delivered electronically (s.237).
It can only be given electronically if –
- the person has indicated a willingness to receive the notification or document electronically,
- the person gets the text in legible form, and
- the text can be used for subsequent reference.
In addition, regarding delivery electronically, it must also have the certified electronic signature of each person by whom it is required to be signed or executed (s.236(4)).
Please see the section about the service of documents under the Act within the "start of tenancy".
On the very last day of fixed-term
Just as with assured shorthold tenancies, the question of a contract-holder leaving within 24 hours of the last day of a fixed term is unknown but generally thought, they can go without notice unless there is some term in the agreement restricting.
On the one hand, the Act is clear that any dealing in respect of the contract may only be done in a way permitted by the contract (s.57). Furthermore, an occupation contract may only be ended by the terms included in the contract under Part 9 of the Act (s.148). There is no provision in the contract (by the standard terms you must include) to give notice during a fixed term (which consists of the last day).
But, on the other hand, a new periodic contract only arises if the contract-holder remains in occupation after the end of the term (s.184(2)).
It is almost certain that the contract-holder will be allowed to leave without notice if no such term exists.