The Section 21 notice is a formal notice to the tenant that the landlord requires possession of the property. The Section 21 notice does NOT end the tenancy and is NOT an eviction notice.
Once the notice is served, it is expected that the tenant will Surrender the tenancy on or before the date the notice expires. Express Surrender of the tenancy by the tenant is through the tenant serving a notice to quit (link here).
If the tenant does not serve a notice to quit to expire on or before the expiry of the notice, we assume there will be implied Surrender on the date the notice expires and that this will be the last day of the tenancy.
If there is no (expressed or implied) Surrender of the tenancy by the date the notice expires, the landlord must apply to the court for an order giving possession of the property.
Rent
As long as the tenancy continues, rent is payable in accordance with the terms of the tenancy agreement. Any rent paid in advance for any period after the tenancy is surrendered or any warrant for possession is executed is refundable to the tenant.
Further Reading
Housing Act 1988 (legislation.gov.uk)
When should I instruct an estate agent to sell my rental property? – Jungle Property Knowledgebase
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