Landlords and letting agents are being urged to carefully check existing tenancy agreements before rejecting tenant notices, following a ruling by the Property Redress that left a firm paying compensation despite having taken formal legal advice.

The decision highlights growing confusion around how transitional rules under the Renters’ Rights Act (RRA) apply to active contracts, proving that relying on broad legislative headlines rather than specific contract terms can quickly lead to costly complaints.

Contractual notice vs statutory transition

In the case in question, a tenant gave one month’s notice to end a 12-month fixed-term agreement, following a break clause written into their original contract.

The letting agent rejected the notice, arguing that the RRA mandated a standard two-month notice period aligned with monthly rent dates. As a result of this decision, the tenant was forced to extend their stay and lost a holding deposit on a replacement property when the next landlord refused to wait.

However, official government guidance for tenancies starting before May 2026 makes clear that where an existing contract explicitly defines notice terms, those contractual rights generally remain valid during the transition period.

Property Redress officers upheld the tenant’s complaint, determining that the agent acted unreasonably. The firm was directed to reimburse the lost holding deposit and pay an additional £100 for stress and inconvenience.

Legal advice does not remove duty of care

Crucially, the ruling confirmed that while the agent had sought external legal advice, obtaining counsel does not relieve property professionals of their responsibility to cross-check instructions against both the written tenancy agreement and published government guidance.

"Landlords and agents have a duty of care to tenants and a professional responsibility to make sure the advice they give is accurate and properly considered," said Charlotte Flashman, Lead Case Officer for Property Redress. "New legislation can be complex, particularly during a transition period, but that makes it even more important to check the tenancy agreement and the relevant government guidance rather than rely on a headline rule."

What this means for property managers

To protect against avoidable financial loss and tenant disputes, landlords and letting agents should adopt a clear verification routine before issuing decisions on tenant notices:

• Audit existing contracts first: Check whether original break clauses or notice terms remain active under current transitional guidance

• Test legal advice against official guidance: If external legal advice contradicts published government rules, pause to seek clarification before acting

• Document the calculation: Maintain a clear internal record detailing how notice dates and contractual terms were verified

By verifying specific tenancy terms alongside published guidance before taking action, landlords and agents can navigate ongoing statutory reforms smoothly while avoiding unnecessary redress claims.

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