Could I withdraw a section 21 notice

[Thyrsis]

If I serve my tenant with a section 21 notice and then we agree he can stay, can I withdraw the notice?
Would the AST then still become a periodic tenancy at the end of the 1 year contract or would the section 21 notice cancel the AST agreement?

[jta]

Since the S21 does not oblige the tenant to move out then he is entitled to stay. The S21 can be used any time after the notice period. I think if you grant a new fixed term that it would be negated however. If it goes to an SPT it remains valid. (Providing the legal conditions have been fulfilled)

[westminster]

If I serve my tenant with a section 21 notice and then we agree he can stay, can I withdraw the notice?
Would the AST then still become a periodic tenancy at the end of the 1 year contract or would the section 21 notice cancel the AST agreement?

The s.21 has no effect on the tenancy; it merely entitles you to apply to the court for possession after notice expiry.

Therefore, there is no need to 'withdraw' the notice.

If the T remains in residence after fixed term expiry, and assuming you don't agree a new fixed term contract, the tenancy will become periodic regardless of whether you withdraw the notice or not, (and note that T does not need your permission to remain in residence after fixed term expiry).

[jjlandlord]

While there is no need to withdraw a section 21 notice, if you do nothing it still remains valid, which means that you may start possession proceedings at any time. That, in turn may make your tenant understandably nervous.
You would need to agree in writing that possession is no longer needed, or agree to a new AST agreement in order to invalidate the s.21 notice completely.
Up to you.

[Snorkerz]

we agree he can stay, can I withdraw the notice?

As others have said, yes it would still become a periodic tenancy, however, if you actually agree that the T can stay beyond the expiry of the s21 (as opposed to simply letting it happen) then you may be deemed to have agreed a new tenancy after the expiry of the s21. I have heard on here that such an action (even if just a one month extension) could render the current s21 invalid, and you'd need to issue a new one for the new tenancy.

Taking that a little further, it may be that if it is considered a new tenancy, you may need to re-protect the deposit.

[PaulF]

As I have said on numerous occasions a S.21 Notice must be served "without reservation" so if you agree with the tenant that he may stay (beyond the fixed term) then by such action it could easily be considered to void the Notice.

Best not to say or agree to anything if you want to keep the validity of the Notice intact.