Can I Change My Mind After I’ve Signed A Tenancy Agreement?

Table of contents

• A tenancy agreement is a legal binding contract
• Are tenancy agreements entitled to a “cooling off period”?
• Mutual agreement is the key
• landlord’s perspective: My tenant wants to cancel the tenancy agreement before moving in
• Tenant’s perspective: I want to end a tenancy before moving in
• Forcing tenancy agreements

A Tenancy Agreement Is a Legally Binding Contract

It’s important to understand that once a tenancy agreement is agreed upon – whether oral or written – it is, in most cases, legally binding.

Of course, it is often easier to dispute an oral tenancy agreement, especially where no deposit has been paid, because it can be difficult to prove that an agreement was actually made in the first place. In those circumstances, it may be easier to avoid being bound by the arrangement.

Are Tenancy Agreements Entitled to a “Cooling-Off Period”?

Unlike insurance policies and certain other types of agreements, there is no default legal entitlement to a cooling-off period in tenancy agreements. For example, you cannot simply change your mind within 14 or 15 days after signing a tenancy contract.

Even if there is a specific clause in the tenancy agreement that provides for a cooling-off period, it is very unlikely to be enforceable, as the Renters’ Rights Act has ended the use of “break clauses”, which is essentially what this would amount to.

Mutual Agreement Is the Key

Tenancy agreements can be terminated or amended at any point – even before they begin – if there is mutual agreement between the landlord and tenant. In such cases, the new agreement overrides what was previously agreed.

For example, if a tenant signs a tenancy agreement and then, for whatever reason, changes their mind a week before the start date of the fixed-term tenancy, it is possible to end the agreement early if the landlord agrees.

Any amendments to the tenancy should be put in writing, dated, and signed by both parties.

Generally speaking, reaching a fair mutual agreement should always be the objective in these situations. It is usually less messy and almost always less expensive for everyone involved.

Landlord’s Perspective: My Tenant Wants to Cancel the Tenancy Before Moving In

I’ve actually been in this situation before. It’s not nice, but it’s not the end of the world.

Yes, I could have tried to enforce the tenant’s legal obligations, or at least attempted to. But honestly, what’s the point, especially with tenants being able to serve a notice to quit to landlords with two months’ notice at any point during the tenancy, under the Renters’ Rights Act.

In practical terms, this can mean a tenant could potentially leave within two months of moving in if they genuinely change their mind.

In my case, the tenant didn’t want to move in anymore (for whatever reason), and I don’t want to force anyone to live in the property. So the most sensible solution was to mutually terminate the agreement. It was all very amicable.

If I had forced them to proceed, the relationship from the outset would likely have been insufferable. Moreover, the likelihood of them trying to end the tenancy as soon as possible would have been high, which can ultimately be more costly.

These are points I would encourage landlords to consider when deciding how to handle this situation.

I understand that finding replacement tenants can be frustrating and potentially costly, but I would rather absorb that than deal with the alternative.

Am I entitled to compensation? Landlords may be entitled to recover reasonable costs such as loss of rent, marketing expenses, and re-letting fees, which may in some cases be deducted from the deposit.

Tenant’s Perspective: I Want to End a Tenancy Before Moving In

When comparing both perspectives (landlord and tenant), this is often the more challenging situation, particularly when dealing with unreasonable landlords and/or letting agents.

My advice would be to try to reasonably negotiate with your landlord to end the tenancy before it begins. Be honest and upfront about your position. Most reasonable landlords will take the same view as I do — they do not want to force anyone to live somewhere they no longer wish to be, and it will likely cost them more if you move in and then leave shortly after. The maths isn’t difficult.

However, you should be prepared to pay some compensation, as your change in circumstances is likely to cost the landlord money (for example, extended void periods and marketing costs). If you have already paid a deposit, you may not get it back. That is not guaranteed and will depend on the landlord’s circumstances, but it is something to bear in mind.

In the worst-case scenario, if your landlord is not willing to negotiate and expects you to fulfil your legal obligations under the tenancy agreement, your next option is to end the tenancy agreement as soon as possible. As mentioned, this will typically be up to two months at most, provided notice is given in accordance with the agreement from the start of the tenancy.

Forcing Tenancy Agreements

I personally do not believe in forcing tenancy agreements.

That is just my perspective and approach – I do not expect everyone to agree. You are completely entitled to follow the proper legal process and enforce your rights where appropriate.

However, whenever I have been in this situation as a landlord (which has only been a handful of times), I have never instinctively viewed legal enforcement as the primary solution. My first consideration is always what will produce the best long-term outcome. In practice, that has never led me to conclude that forcing a tenant to remain in a property they no longer want to live in is the right approach.

Yes, I have allowed tenants to terminate agreements before they moved in, and even during a tenancy, earlier than they were contractually obliged to. Circumstances change for everyone – that is just life. If a landlord cannot be fair or adaptable, they are probably in the wrong business.

I have found that negotiating a fair resolution is usually the best approach, both financially and from a stress perspective, and that relying on legal pressure in these situations rarely leads to a net positive outcome.

Landlord out xo