Tenant giving notice then ungiving it!

Other

Don't think my e-mail yesterday got through to you so trying again.
This is very complicated!

I manage a 3 bed flat where the tenants have given notice (they are a couple who have split up). She is moving out. However, he likes the flat and wants to stay. He gave the required 2 months notice in writing and the landlords accepted this. He then proposed staying on as a head tenant and sub-letting the other two bedrooms. The landlords rejected this. He has now suggested staying on with one other tenant (to be found) on one agreement.

This is further complicated by:-

1. Their current agreement is outside the Housing Act as the rent is more than £25K a year. This will have to become an AST in October so a new agreement is required anyway, and

2. The current rent paid is well below what could be achieved now as when they moved in it was a tenants' market with an oversupply of rental property and they managed to negotiate a very low rent.

The landords are keen to now achieve the correct market rent which is significantly higher than he is currently paying.

Ideally they'd like new tenants, although he's been a reasonably good tenant and always paid the rent etc. although will negotiate until the cows come home!

Can he give notice and then ungive it?

Can the landlords serve notice on him bearing in mind its not an AST and what reason should they state?

Any other options?

Help please?

Lucinda Watts