End of Tenancy - Can I continue with current tenant on a month to month basis

Tax Planning and Financial

The tenancy agreement with the current tenant terminated on 26th November 2007. Although I have had rental arrears problems with the tenant, the tenant is of a good character and takes care of the property, etc. In addition, I have managed to get direct payments off the Housing Benefit office. Although this leaves me short by about £50 per month, I am seriously considering whether I should allow the tenant to stay on given the direct payments from the benefit office.

My question is whether the tenancy continues without requires any intervention from myself on a month to month basis i.e. I am trying to avoid entering into a new tenancy if it is possible to continue the current arrangement with the tenant requiring to give me one month's notice and I requiring to give her two month's notice. Is this approach realistic and will I continue to have the protection of the Tenancy Agreement that terminated on 26th November 2007?