Are Unfair Notice Periods or Termination Clauses Stopping You Moving Agents?
Landlords deserve choice, not chains. Yet too often we speak to landlords who want to leave their current letting agent, only to discover they’re tied down by unfair contract clauses – from eye-watering termination fees to endless notice periods. The good news? Under the Consumer Rights Act 2015, they may not even be legally enforceable...
If you’ve ever felt “trapped” by a letting agent, you’re not alone. Many landlords who want to switch to Cope & Co. tell us the same story: they’re unhappy with their current agent, but the contract they signed is riddled with unfair clauses that make leaving feel impossible.
One of the most common culprits...
Termination fees that bear no relation to the work done or the service provided.
The Problem with Unfair Clauses
Buried in many letting agency agreements are clauses designed to lock landlords in long after they’ve lost confidence in the service. The most notorious of these are:
Disproportionately high termination fees – Some agents demand months’ worth of fees even if you no longer want them to manage the property.
Excessive notice periods – Clauses requiring ttwelve months’ notice are not uncommon, regardless of circumstances.
“All future rent” clauses – Agents insisting they’re entitled to a cut of rent payments for the remainder of a tenancy, even if you’ve terminated their management services.
For landlords, these terms are not only frustrating – they may also be legally unfair.
What the Law Says
The Consumer Rights Act 2015 was designed to protect consumers from exactly this kind of practice.
IMPORTANT - Landlords who are not operating as a business (i.e. those who rent out property as a private individual rather than a corporate entity) are considered “consumers” under the Act.
Schedule 2 of the Act sets out examples of terms that may be regarded as unfair, including:
Paragraph 5:
“A term which has the object or effect of requiring that, where the consumer decides not to conclude or perform the contract, the consumer must pay the trader a disproportionately high sum in compensation or for services which have not been supplied.”
Paragraph 6A:
“A term which has the object or effect of requiring a consumer who fails to fulfil his obligations under the contract to pay a disproportionately high sum in compensation.”
Put simply: if your letting agent is demanding an excessive fee just because you want to terminate the contract, that term could be unenforceable in law.
Are Unfair Fees Even Enforceable?
Here’s the important bit: even if you’ve signed a contract with unfair terms, the law may not allow your letting agent to enforce them.
Under Section 62 of the Consumer Rights Act 2015, any term deemed “unfair” is simply not binding on the consumer. In other words, if a termination fee is excessive and disproportionate, your agent cannot rely on it - regardless of whether your signature is on the agreement.
The Competition and Markets Authority (CMA) spells this out clearly in its guide Unfair Terms Explained:
“Disproportionately high termination charges and over-lengthy notice periods can […] act to force consumers to continue with contracts, or renew them, when they have no wish to do so. They therefore have the potential to be unfair.”
Why? Because such terms create what the Act calls a “significant imbalance in the parties’ contractual rights and obligations, to the detriment of the consumer.” If a clause has this effect, it can be classed as unenforceable in law.
What Can You Do About It?
If you believe your existing agent is enforcing an unfair termination clause, you don’t have to roll over. Here are some practical steps you can take:
Check the small print – Go through your agency agreement carefully and highlight any clauses that could fall foul of the Consumer Rights Act.
Challenge the agent in writing – Point out that the clause may be considered unfair under Schedule 2 of the Act. Ask them to justify why the fee or notice period is proportionate to the service provided.
Escalate if needed – If the agent refuses to be reasonable, you can take your complaint to their redress scheme (either The Property Ombudsman or the Property Redress Scheme). These bodies can rule on whether the fee is unfair.
Seek legal advice – Particularly for larger sums, a solicitor can help confirm whether the term is enforceable and may even write to the agent on your behalf.
Keep records – Always keep a paper trail of correspondence. It strengthens your position if things escalate.
Many landlords are surprised to find that once challenged, agents often back down — especially when they realise you understand your rights.
Making the Move to Cope & Co.
At Cope & Co., we believe landlords deserve freedom of choice and transparency. That’s why our agreements are straightforward and fair. We don’t hide behind small print, and we’ll never lock you in with unfair exit fees.
If you’re currently tied into an agreement and are unsure of your rights, we can:
Review your contract with you and highlight any potentially unfair terms.
Support you in challenging unreasonable clauses with your existing agent.
Handle the transition to ensure your tenants, property, and income are protected.
Final Thought
Unfair termination clauses are a way for some letting agents to hold landlords hostage. But the law is on your side, and you don’t have to put up with it.
If you’re stuck in a contract and want to explore your options, talk to us. At Cope & Co., we make moving agents simple, transparent, and fair – exactly the way it should be.
👉 Ready to move on from your current agent? Contact us today and let’s start the conversation.
