Notice of Termination Under Landlord’s Break Clause – Fixed Term Standard Contract with a Two-Month Minimum Notice Period

Notice of Termination Under Landlord’s Break Clause – Fixed Term Standard Contract with a Two-Month Minimum Notice Period

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Form RHW25: Notice of Termination Under Landlord’s Break Clause – Fixed Term Standard Contract with a Two-Month Minimum Notice Period

Form RHW25 is the prescribed notice that landlords in Wales must use to end a fixed-term standard occupation contract by relying on a break clause in that contract. It is designed to be transparent, fair, and legally compliant under the Renting Homes (Wales) Act 2016.

Crucially, this form can only be used where the contract includes a valid landlord’s break clause allowing termination during the fixed term. Form RHW25 is also subject to a statutory two-month minimum notice period.

This guide provides a detailed explanation of Form RHW25, including its purpose, when and how Welsh landlords should use it, the associated legal requirements, and best practices to ensure compliance and fairness.

The Renting Homes (Wales) Act 2016 – Context

The Renting Homes (Wales) Act 2016 modernised the law on residential renting in Wales, replacing old-style tenancies with occupation contracts.

Key features of the Act include:

  • Clear rules about rights and responsibilities.
  • Standardised forms for ending contracts.
  • Better protection for both landlords and contract-holders.

Among these is the concept of a fixed-term standard contract, which is an agreement for a set period (for example, 6 or 12 months) but which can include a landlord’s break clause.

What Is a Fixed-Term Standard Contract?

A fixed-term standard contract is an employment contract agreed upon for a specific duration. During this period, both landlord and contract-holder have security:

  • The landlord cannot simply end the contract at will.
  • The contract holder is committed to paying rent for the duration of the term.

However, the contract can include a break clause, which allows one or both parties to end it early under agreed conditions.

What Is a Landlord’s Break Clause?

A break clause is a provision in the lease contract that allows the landlord to end the fixed term before its natural expiry.

Typical features include:

  • The clause must be written in the contract.
  • It must specify when and how the landlord can use it.
  • The Renting Homes (Wales) Act 2016 sets rules about notice periods and fairness.

A break clause provides landlords with flexibility (for example, if they need to move back into the property) while ensuring the tenant is given fair notice.

What Is Form RHW25?

Form RHW25 is the prescribed legal notice landlords must use to exercise a valid break clause in a fixed-term standard contract.

Key characteristics:

  • It formally notifies the tenant (contract holder) that the landlord is terminating the contract early under the break clause.
  • It sets out the landlord’s intention, the termination date, and the statutory notice period.
  • It ensures compliance with the requirements of the Renting Homes (Wales) Act 2016.

Without serving this form correctly, a landlord cannot lawfully rely on the break clause to end the contract.

When Should Welsh Landlords Use Form RHW25?

Landlords must only use Form RHW25 when:

  • The occupation contract is a fixed-term standard contract.
  • The contract contains a valid landlord’s break clause.
  • The landlord intends to exercise that break clause to end the contract before its expiry.

Form RHW25 is not for:

  • Ending periodic contracts.
  • Terminating for breach of contract or rent arrears (which require different forms).
  • Serving “no fault” possession notices outside of the break clause.

Using the wrong form in the bad situation can render the notice invalid.

Legal Requirements for Using Form RHW25

For a landlord to use Form RHW25 lawfully, the following must apply:

1. The Break Clause Must Be Valid:

  • It must be included in the employment contract.
  • It must comply with the Renting Homes (Wales) Act 2016 (for example, it cannot contain unfair terms).

2. The Minimum Notice Period Must Be Met:

  • The law requires a minimum of two months’ notice.
  • The contract cannot reduce this minimum period.

3. The Prescribed Form Must Be Used:

  • Landlords must use Form RHW25 exactly as prescribed by law.
  • Altering or omitting information can render the notice invalid.

Failure to meet these requirements means the landlord cannot lawfully rely on the break clause.

Contents of Form RHW25

Form RHW25 includes:

  • Landlord’s details.
  • Contract-holder’s details.
  • Property address.
  • Date of service.
  • The date on which possession is required.
  • A statement that the landlord is exercising the break clause.
  • Confirmation of compliance with the two-month minimum notice period.
  • Tenant’s rights to seek advice.

This ensures the tenant understands why they must leave, when, and their rights to challenge or get advice.

How to Serve Form RHW25

Landlords must serve Form RHW25 correctly for it to be legally effective.

Options for service include:

  • In-person delivery.
  • By post (with proof of posting strongly recommended).
  • Any method specified in the occupation contract itself.

Best practice:

  • Keep clear records of when and how the notice was served.
  • Retain a signed copy of the form for legal proof.

Minimum Notice Period

The Renting Homes (Wales) Act 2016 requires at least two months’ notice when using Form RHW25.

Key points:

  • The notice must specify the date on which possession is required.
  • This date must be at least two months after the notice is given.
  • The contract cannot override or reduce this statutory minimum.

Providing less than two months’ notice renders the notice invalid.

What Happens After Serving Form RHW25?

Once served, the contract holder remains liable for rent until the end of the notice period.

During this time:

  • The tenant has the right to occupy the property.
  • They can choose to leave earlier by mutual agreement.
  • The landlord must continue to meet all legal obligations (for example, repairs and safety standards).

If the tenant refuses to leave after the notice period, the landlord must apply to the court for a possession order.

The Court Process After Form RHW25

If the tenant does not vacate after the notice period:

  • The landlord can apply to the county court for a possession order.
  • The court will examine:
    • Whether there was a valid break clause.
    • Whether Form RHW25 was served correctly.
    • Whether the correct notice period was given.
  • Both parties can present evidence.

If the court is satisfied, it will grant a possession order specifying the date by which the tenant must vacate.

Tenant Rights and Defences

Tenants served with Form RHW25 have the right to challenge it if:

  • There is no valid break clause in the contract.
  • The notice period given is less than two months.
  • The notice was not properly served.
  • The landlord used an incorrect or altered form.
  • The break clause itself is unfair or unenforceable.

Landlords must be prepared to demonstrate that they have complied with all applicable requirements.

Best Practice for Landlords

  • Review the occupation contract carefully to confirm there is a valid break clause.
  • Serve the correct prescribed form without alterations.
  • Give at least the statutory minimum of two months’ notice.
  • Communicate respectfully with tenants about the reasons for using the break clause.
  • Keep clear, dated records of service and communication.

Following best practice avoids disputes, delays, and legal challenges.

Risks of Misusing Form RHW25

  • The court may dismiss a possession claim if the notice is invalid.
  • Landlord may face legal costs and delays.
  • Possible claims of unlawful eviction or harassment.
  • Damage to reputation.

Landlords should only use Form RHW25 when they have a genuine, lawful basis under the break clause.

Advantages of Using Form RHW25 Properly

  • Provides a clear, lawful way to regain possession early during a fixed term.
  • Respects contract-holder rights by giving proper notice.
  • It avoids accusations of unfair treatment.
  • Enables landlords to plan future use of the property.
  • Ensures the possession process is legally enforceable if needed.

Preparing to Use Form RHW25

Before serving Form RHW25, landlords should:

  • Confirm the occupation contract contains a valid break clause.
  • Check that the break clause allows use at the intended time.
  • Ensure at least two months’ notice will be given.
  • Please complete the prescribed form accurately and completely.
  • Choose a valid service method and keep proof of delivery.

Professional legal advice is recommended for landlords unfamiliar with the process.

Useful External Links

  • Welsh Government Renting Homes Guidance
  • https://www.gov.wales/renting-homes
  • Renting Homes (Wales) Act 2016 (full legislation text)
  • https://www.legislation.gov.uk/anaw/2016/1/contents
  • Shelter Cymru – Tenant and Landlord Advice
  • https://sheltercymru.org.uk/get-advice
  • Citizens Advice Wales – Eviction and Housing Help
  • https://www.citizensadvice.org.uk/wales/housing
  • HM Courts and Tribunals Service – Forms and Guidance
  • https://www.gov.uk/government/organisations/hm-courts-and-tribunals-service
  • Rent Smart Wales – Landlord Registration and Licensing
  • https://www.rentsmart.gov.wales
  • Law Wales – Renting Homes Act Overview
  • https://law.gov.wales/housing-and-local-services/renting-homes

FAQ

What is Form RHW25?

It is the prescribed notice that Welsh landlords must use to end a fixed-term standard contract early under a landlord’s break clause, providing at least two months’ notice.

When should landlords use Form RHW25?

When there is a valid break clause in the contract, and the landlord wishes to end the fixed term before its natural expiry.

What is the minimum notice period?

Two months.

Can the contract reduce the notice period?

No. The two-month minimum is set by law.

Is Form RHW25 the same as a possession order?

No. It is the notice given to the tenant before applying to court for possession if they refuse to leave.

Can landlords evict without a court order?

No. If the tenant does not leave after the notice expires, a court possession order is required.

Is legal advice required?

It’s not mandatory, but it’s strongly recommended.

Form RHW25 is a crucial legal document for landlords in Wales who wish to exercise a break clause in a fixed-term standard occupation contract.

When used correctly, it strikes a balance between landlord flexibility and contract-holder rights, ensuring a fair, lawful, and transparent process for terminating the agreement early.

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