The client entered into a two-year fixed-term tenancy agreement with a corporate tenant in August 2023. The agreement included a clause for a CPI-based rent review after 12 months and explicitly excluded automatic renewal. During the tenancy, the tenant made cosmetic changes to the property and managed minor issues including a boiler repair and waste disposal. In May 2025, the client received a debt collection notice regarding electricity bills exceeding £2,500, which the tenant subsequently took over with the agency.
On 4 June 2025, the client initiated discussions to renew the tenancy with a rent increase in line with CPI, which the tenant declined. The client issued formal notice on 11 July 2025 confirming the tenancy would not continue beyond its contractual end date of 4 August 2025. The property was originally handed over in immaculate condition, fully furnished, and the client expects it to be returned in the same state. A trusted maintenance partner has been appointed to conduct the end-of-tenancy inspection.
Despite the fixed term ending and the absence of a renewal clause, the tenant has indicated an intention to remain in the property. The client has secured a new occupant to begin tenancy on 5 August 2025 but is unable to proceed due to the tenant’s refusal to vacate. This has raised concerns about potential loss of rental income and disruption to the client’s financial obligations.
Counsel advised that the tenancy agreement clearly stipulates a fixed term with no renewal provision, and the client’s notice was properly served. Under common law principles, the client retains a strong position to recover possession. Counsel recommended monitoring the tenant’s response and preparing to initiate possession proceedings if necessary. Further advice will be provided following the scheduled Zoom consultation and once the tenant’s position is clarified.
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