Think You Were Misled into Renting? How to Cancel Your Tenancy Contract Legally (22 September 2025)

Tenants renting in the private sector are increasingly recognised as consumers under the law. This recognition provides tenants with important consumer protection rights including the Right to Unwind, which is a statutory remedy under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

Effectively, it allows a tenant to cancel a tenancy agreement as if it never existed. Tenants can leave without penalty, recover rent and deposits already paid, and in some cases claim damages for additional loss caused by misleading or aggressive practices.

Although this powerful right originates from consumer law, it can apply to tenancy agreements where tenants were misled or pressured into signing by way of aggressive practices from their landlords/letting agents, resulting in unwinding the agreement.

In this article, Duncan Lewis housing caseworker Sumiyah Farid explores how the Right to Unwind works in a housing context, when tenants can use it to challenge tenancy agreements entered into, and outlines relevant case law that supports its application.

Legal Basis

The Right to Unwind is found in Regulation 27 of the CPRs. It applies to consumers dealing with traders. The courts have increasingly accepted that tenants are consumers (Jones v Kaney [2011] UKSC 13) and landlords/letting agents are traders for the purpose of these rules (Office of Fair Trading v Foxtons Ltd [2009] EWHC 1681 (Ch)).

This protection comes in addition to rights under the Consumer Rights Act 2015, which covers unfair contract terms, and housing-specific protections under the Housing Act 1988 and Tenant Fees Act 2019.

The Right to Unwind and Housing Law

If a tenant has been induced to sign a tenancy agreement because of false information, omissions, or pressure, they may be able to cancel or ‘unwind’ the agreement. The tenant does not need to prove financial loss, as the law focuses on how the contract was formed.

To qualify, the tenant must show:

• the landlord or agent engaged in a misleading or aggressive practice;
• this caused the tenant to enter the tenancy;
• the claim is brought within 90 days of entering into the contract or starting the tenancy.

Examples of Misleading or Aggressive Practices

1. False Claims regarding the property
   If a landlord or letting agent makes a false statement to convince a tenant to rent, this may be considered misleading under CPRs. Examples include claiming the property has been recently refurbished, stating there are no issues with damp or mould, suggesting it is within the catchment area of a particular school, or saying utilities or council tax are included when they are not.
2. Omitting Key Information
   Failing to tell tenants about serious issues such as an upcoming eviction notice, unresolved repair problems, or a history of antisocial behaviour in the building may also breach the regulations, as the law treats important omissions as active misrepresentations.
3. Aggressive Sales Tactics
   If a letting agent pressures someone into signing a tenancy quickly — for example, claiming “others are about to take it” or refusing to allow time to read the agreement — this can amount to an aggressive practice.

Raising and Resolving the Issue

If a tenant suspects they have been misled or pressured into renting:

• They should put their concerns in writing to the landlord or agent as soon as possible, clearly stating the misleading statement or practice.
• Legal advice should be sought promptly, as the Right to Unwind must generally be exercised within 90 days.
• Tenants may also contact organisations such as Citizens Advice or Shelter for support and guidance.

Possible Outcomes

• Unwinding the agreement: The tenancy can be cancelled, and the tenant may be entitled to a refund of rent paid and the return of their deposit.
• Partial refund or damages: In some cases, where the tenant has had use of the property, the court may order a reduction in rent or compensation instead of a full unwind.
• Deposit disputes: Deposits are usually returned via the Tenancy Deposit Protection Scheme, and evidence of misleading practices can strengthen a tenant’s case for a full refund.

Legal Advice at Duncan Lewis Solicitors

The Right to Unwind offers tenants a powerful remedy if they are misled or pressured into a tenancy agreement. Despite the legal framework deriving from consumer law, it is increasingly being applied to the housing sector as tenants are recognised as consumers and landlords or lettings agents as traders. Therefore, it is important that tenants keep a record, act quickly and seek legal advice. With appropriate legal advice and timely action, tenants can use this right to protect themselves and hold landlords or letting agents accountable.

About the Author

Sumiyah Farid is a Housing Caseworker at Duncan Lewis Solicitors based in Birmingham. Duncan Lewis She works within the Housing Department, under the supervision of a Director, helping clients with issues like possession claims, disrepair, and misleading landlord practices.

Contact her for advice via email at sumiyahf@duncanlewis.com or by telephone on 02072752873

Duncan Lewis Housing Team

The Duncan Lewis Housing team is ranked as a Top Tier practice The Legal 500 UK for its extensive experience in all areas of social housing and property litigation. Offering both publicly funded (legal aid) and privately funded legal services nationwide, our experts can guide clients in any matter or issues arising with local housing authorities, housing applications, tenants, landlords, ownership and repairs. With a niche expertise in unlawful eviction, disrepair and homelessness matters the team offers representation in all proceedings including reviews, appeals and judicial review proceedings.