What happens if a landlord serves a section 25 notice proposing terms for a renewal lease, and the tenant does not respond before the termination date specified in the notice?

If the tenant does not respond, by way of agreeing a statutory extension, or by issuing court proceedings by the termination date specified in the section 25 notice, the tenant will lose their right to a renewal lease under the Landlord and Tenant Act 1954 (LTA 1954) and will, as of the expiry of the section 25 notice, become an unauthorised occupier.

For guidance on statutory extension under LTA 1954, s 29B, see Practice Note: Time limits and extension of statutory period under LTA 1954.

In the situation that the tenant loses their right to a renewal lease, and on expiry of the section 25 notice becomes an unauthorised occupier, if the landlord did still want to grant the tenant a new lease, the landlord will have a strong bargaining position. This is because the landlord will be entitled to possession and will no longer be