Navigating Early Lease Termination Due To Health Issues

If your health takes a sudden turn, the last thing you want to worry about is being locked into a rental agreement you can no longer manage. Under the new Renters’ Rights Act 2025, which takes effect in England from 1 May 2026, the old rules around fixed-term tenancies are being scrapped. That means the way you end a lease early due to health issues is about to change significantly.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

1 May 2026
Effective date for Renters’ Rights Act 2025 in England
Baker McKenzie

2 months
Minimum notice period tenants must give to end a periodic tenancy
Baker McKenzie

1 month
Maximum fixed rental period for periodic tenancies under the new Act
Baker McKenzie

£100,000
Annual rent threshold above which tenancies are excluded from the Act
Baker McKenzie

The shift from fixed-term assured shorthold tenancies to rolling periodic tenancies is the biggest change for anyone who needs to leave a rental property because of illness or injury. Under the old system, breaking a fixed-term lease early often meant paying rent until a new tenant was found or covering the full remaining term. The new law removes that fixed-term guarantee entirely for most tenancies. Here’s what you actually need to know.

Fixed terms are gone
From May 2026, most existing tenancies convert to rolling periodic tenancies. No more being locked into a 12-month contract you can’t leave.

Two months’ notice minimum
Tenants must give at least two months’ notice to end the tenancy. That’s the standard period, regardless of the original agreement.

No more Section 21 evictions
Landlords can no longer use no-fault evictions. If you need to leave for health reasons, the process is clearer and more tenant-focused.

Rent increases capped
Landlords can only raise rent once per year, and not in the first year. That gives you stability if your income drops due to health issues.

One term you’ll hear a lot in this context is periodic tenancy.

Periodic Tenancy
A tenancy that runs from one rental period to the next (usually monthly) with no fixed end date. Under the Renters’ Rights Act 2025, most tenancies become periodic by default, meaning you can leave with proper notice rather than being tied to a fixed term.

What I tend to notice is that most tenants still think in terms of “breaking a lease” — a concept that barely applies after May 2026. The real question becomes: how much notice do you need to give, and what happens if your health means you can’t manage the full two months?

What the new law means for your rental costs and timeline

The headline change is that fixed-term tenancies are abolished for most private rented properties in England. That means if you signed a 12-month contract in 2024, it will automatically convert to a rolling periodic tenancy on 1 May 2026. You won’t need to wait until the end of the fixed term to leave.

But the cost picture isn’t just about the notice period. Under the new rules, landlords can still pursue possession through the courts using specific grounds. If you leave without proper notice, you could be liable for rent until the tenancy legally ends. The minimum notice you must give is two months, but that’s only if you’re in a periodic tenancy. If you’re still in a fixed term before May 2026, the old rules apply until conversion.

Here’s a breakdown of how the timeline and costs compare between the old system and the new one:

→ Scroll right to see all columns

Source: Baker McKenzie analysis
FactorOld System (pre-May 2026)New System (from May 2026)
Leaving a fixed term earlyPay rent until new tenant found or term endsNo fixed term — give 2 months’ notice
Minimum notice periodVaries by contract; often 1 month2 months for periodic tenancies
Landlord eviction methodSection 21 no-fault noticeCourt possession via Section 8 grounds only
Rent increase frequencyNo statutory limitOnce per year, not in first year
Advance rent paymentsCommonly requiredRestricted; must be repaid

The practical takeaway: if your health forces you to move, the new system gives you a clearer exit but still requires planning. Two months’ notice means you need to time your move carefully. If you’re in a property with a high rent — over £100,000 per year — the Act doesn’t apply at all, so check your tenancy type.

Two months is the floor, not the ceiling
The two-month notice period is the minimum for periodic tenancies under the new Act. Your tenancy agreement might require longer, but the Act overrides contractual terms that exceed one month for the rental period itself. Always check the specific notice clause in your contract.

Common mistakes tenants make when leaving due to health issues

Most people assume that a doctor’s note is enough to end a tenancy early. It’s not. The new law doesn’t create a specific health-related ground for possession. You still need to follow the proper notice process.

Assuming a medical certificate breaks the lease

A letter from your GP does not automatically terminate a tenancy. Under the Renters’ Rights Act, the only way to end a periodic tenancy is by giving the required notice. If you stop paying rent and leave, the landlord can use Ground 8 (rent arrears) to seek possession, which now requires three months’ arrears for monthly rent. That’s a long time to owe money, and it will affect your credit and future rental applications.

Not checking if your tenancy is excluded from the Act

The new rules don’t apply to company lets, tenancies with annual rent over £100,000, lettings for more than 21 years, service occupancies, and some student and agricultural tenancies. If you’re in one of these, the old fixed-term rules still apply. I’ve seen tenants assume they’re covered only to discover they’re still locked into a contract.

Ignoring the transitional period

If your tenancy started before 1 May 2026, it converts automatically on that date. But if you need to leave before then, the old rules apply. That means you could be liable for the full fixed term if you leave early. The safest move is to check your tenancy start date and plan around the conversion.

Overlooking the rent arrears threshold

Under the new Act, Ground 8 for rent arrears requires three months’ arrears for monthly rent (up from two months). That might sound like it gives you more breathing room, but it also means the landlord can’t act quickly. If you’re struggling to pay due to health issues, the arrears will pile up. A better approach is to negotiate a mutual surrender with the landlord before arrears reach that threshold.

How to actually end your tenancy for health reasons

The process is simpler under the new law, but it still has specific steps. Here’s what you need to do, in order.

Confirm your tenancy type and conversion date

First, check whether your tenancy is an assured shorthold tenancy (AST) or an excluded type. If it’s an AST, it will convert to a periodic tenancy on 1 May 2026. If you need to leave before that date, you’re still under the old rules. If after, the new rules apply. Write down the conversion date — it’s the most important date in your timeline.

Give written notice to your landlord

Once you’re in a periodic tenancy, you must give at least two months’ written notice. The notice must be clear that you’re ending the tenancy. There’s no standard form, but a letter or email stating your intention to vacate on a specific date is sufficient. Keep a copy. If you’re unsure about the wording, it’s worth getting a quick opinion from a tenant and landlord lawyer to avoid mistakes.

Prepare for the landlord’s potential response

Your landlord cannot use Section 21 to evict you under the new Act. But they can use Section 8 grounds if you breach the tenancy. If you leave with proper notice, there’s no breach. If you leave without notice, the landlord can claim rent for the notice period. The safest route is to agree a surrender date in writing.

Handle the move and final payments

On the day you leave, return the keys and provide a forwarding address. The landlord must return your deposit within a reasonable time, minus any agreed deductions. Under the new Act, advance rent payments are restricted, so if you paid rent upfront, the landlord must repay the unused portion. If there’s a dispute, you can use the tenancy deposit scheme’s resolution service.

Future-proofing: what’s coming next

The Renters’ Rights Act is the first phase. Further reforms are expected around landlord licensing, EPC requirements, and Awaab’s Law (which sets time limits for fixing serious hazards). If your health issues are linked to property conditions — like damp or mould — these future changes could give you stronger grounds to leave without penalty. Keep an eye on updates from the Ministry of Housing, Communities and Local Government.

Frequently asked questions about ending a tenancy for health reasons

Can I end my tenancy immediately if I’m hospitalised? ▾
No. You still need to give two months’ notice. If you’re unable to do so, a family member or power of attorney can act on your behalf. The landlord may agree to an earlier surrender, but they’re not required to.
Does the new Act apply to shared housing or HMOs? ▾
Yes, for most HMOs. But student HMOs with three or more bedrooms have a specific ground (Ground 4A) that requires four months’ notice ending between June and September. Check if your property is registered as a student HMO.
What if my landlord refuses to accept my notice? ▾
Your notice is valid if it meets the legal requirements. The landlord cannot refuse it. If they try to claim you’re still liable for rent, you may need to seek a court declaration. A real estate lawyer can help with this.
Can I be evicted for rent arrears caused by health issues? ▾
Yes, if arrears reach three months (monthly rent) or 13 weeks (weekly rent). The landlord must use Ground 8 and go to court. There’s no automatic protection for health-related arrears, so act early.
Does the Act cover tenancies in Scotland, Wales, or Northern Ireland? ▾
No. The Renters’ Rights Act 2025 applies only to England. Scotland, Wales, and Northern Ireland have separate tenancy laws. Check the relevant legislation for your region.
What happens to my deposit if I leave early with proper notice? ▾
The landlord must return it within a reasonable time, minus any agreed deductions for damage or unpaid rent. If the deposit is in a government-backed scheme, you can dispute deductions through the scheme’s resolution process.

The biggest shift is the one most tenants haven’t noticed yet

The removal of fixed-term tenancies is the structural change that matters most. It turns the old question — “how do I break my lease?” — into a much simpler one: “how much notice do I need to give?” For anyone facing a health crisis, that clarity is valuable. But it only applies if you know your tenancy type, your conversion date, and the exact notice rules. The two-month notice period is the new standard, and planning around it is the single most practical step you can take.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Renters’ Rights in the UK: Know Your Protections Before You Sign.

Sources and Further Reading

Your Guide to Minimum Rental Agreements in the UK — Explains the basics of tenancy lengths and what the new periodic system means for minimum terms.

From Viewing to Keys: Your Ultimate UK Apartment Leasing Timeline — Walks through the full rental process, including notice periods and move-out timing.

Baker McKenzie (2026). United Kingdom: Renters’ Rights Act 2025. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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