Need Guidance on Renewing Rental Agreement

I am a tenant in a 2-BHK flat where the tenancy agreement ends by 31-Mar-2020.

Every month I pay the rent amount to my letting agent as initially agreed. After this agreement is over I thought of moving to a monthly periodic tenancy as my job contract gets over by July 2020.

My landlord is fine with periodic tenancy but wants to increase the rent by 25 GBP per month and needs a two months notice before vacating the property.

The letting agent says if the landlord needs an increase in rent, then I need to renew the agreement and they are also demanding the GBP 90 as renewal agreement related charges. I got the below email from the agent. Please advise what best I can do.

“I have spoken to the landlord this morning and a periodic tenancy will not be agreed. He is however happy to honour a 12 month contract with a 2 month break clause which will take effect immediately (so you can serve 2 months’ notice at any point.) He would also like a rental increase of £25pcm. I will await your confirmation.”