If you're a landlord in Wales, Section 8 Ground 8 doesn't apply to you. Neither does Section 21. Wales has its own system entirely.
From 1 May 2026, Welsh landlords using Assured Shorthold Tenancies (ASTs) must transition those tenancies to Occupation Contracts under the Renting Homes (Wales) Act 2016. And if a tenant stops paying rent, you use a Section 173 notice - the Welsh equivalent of possession for breach of contract.
This post covers the Welsh route. If you're in England, read our England Section 8 Ground 8 guide.
What Is an Occupation Contract?
An Occupation Contract is Wales's replacement for the Assured Shorthold Tenancy (AST). It's a fixed-term or periodic contract between you (the landlord) and the tenant, governed entirely by the Renting Homes (Wales) Act 2016.
Key differences from ASTs:
- No deposit prescribed information regime - instead, you must provide a Prescribed Information Notice within 30 days of the tenancy start
- No Section 21 - you cannot serve a "no-fault" eviction notice
- No Section 8 grounds - instead, you use Chapter 2 notices (breach of contract) under the Renting Homes Act
- Possession is via the civil courts (District Judge, not county court), using a Section 173 notice
Two Types of Section 173 Notice - Don't Mix Them Up
Section 173 of the Renting Homes Act is used for two completely different scenarios. It's critical you understand which one applies to your situation, because the notice period and process are very different.
Section 173A: No-Fault Termination (6 Months' Notice)
What it is: You, the landlord, decide to end the tenancy without giving a reason. The tenant has done nothing wrong.
Notice period: 6 months from service date.
When you'd use it: You want to sell the property, move a family member in, or stop letting. You don't need grounds; you just give notice.
Key point: The tenant has full rights during the 6-month period. They can ask for a tribunal to decide if it's fair. The court may refuse if circumstances suggest the eviction is retaliatory (e.g., you're evicting because the tenant complained about disrepair).
Section 173B: Breach-Based Possession (Chapter 2 + 28 Days' Notice)
What it is: The tenant has breached the Occupation Contract (e.g., unpaid rent). You use a Chapter 2 notice to give them a chance to remedy, then serve Section 173 if they don't.
Notice period: 28 days from service of the Section 173 notice (but only after serving a Chapter 2 notice and waiting for the remedy period to expire).
When you'd use it: Rent arrears, breach of tenancy terms, or persistent late payment. You're claiming the tenant has breached the contract.
Key point: The court has discretion. Even with a valid breach, the judge may refuse possession if the tenant's circumstances warrant leniency.
This guide focuses on Section 173B - breach-based possession for rent arrears. If you're considering a no-fault eviction under Section 173A, seek specialist advice on fairness and tribunal risk.
Rent Arrears: Section 173 Notice
Section 173 of the Renting Homes (Wales) Act 2016 allows you to seek possession when the tenant breaches the Occupation Contract. For rent arrears, the breach is clear: the tenant has failed to pay rent.
When Can You Serve Section 173?
You can serve a Section 173 notice when:
- Rent arrears have accumulated
- The tenant has been in breach for a specified period (typically 2+ months' arrears is considered serious)
- You've given the tenant notice to remedy the breach (a Chapter 2 notice) and they haven't done so within the remedy period (usually 14 days)
The Process: Chapter 2 Notice First
Unlike Section 8, you must first serve a Chapter 2 notice - giving the tenant 14 days to cure the breach (pay the arrears).
Chapter 2 notice must state:
- The breached term(s) (failure to pay rent)
- The total arrears amount
- The exact remedy required (pay all arrears by date X)
- The remedy period (14 days minimum from service)
- Consequences if the tenant doesn't remedy
If the tenant pays the arrears within 14 days, you cannot proceed. If they don't, you can then serve a Section 173 notice.
The Section 173 Notice
If the tenant fails to remedy, you serve the Section 173 notice, which specifies:
- Property address and tenant details
- The breach (unpaid rent)
- The date the breach occurred and amount outstanding
- That a Chapter 2 notice was served and not complied with
- The date possession is sought (earliest date is 28 days from service)
Notice period for rent arrears: Minimum 28 days from service. This is longer than England's 4 weeks (28 days), so timing is similar but dates matter for compliance.
Going to Court Under Section 173
If the tenant doesn't pay the arrears or vacate by the possession date, you apply to the civil courts (District Judge) for a possession order.
What the Court Considers
The judge will look at:
- Was a valid Chapter 2 notice served? Did you give the tenant 14 days to remedy?
- Is the breach proven? Are the arrears real? (Rent statements, bank evidence.)
- Is it reasonable to grant possession? This is discretionary. Even if you prove rent arrears, the judge may refuse possession if:
- The tenant's in hardship (job loss, illness)
- The tenant has made significant efforts to pay
- The arrears are marginal or the tenant is nearly caught up
- Eviction would be disproportionate
Evidence You'll Need
- Occupation Contract (signed by both parties)
- Prescribed Information Notice (served within 30 days of tenancy start)
- Rent statements (itemised, showing due dates and payments)
- Chapter 2 notice (with proof of service)
- Section 173 notice (with proof of service)
- Comms log (all messages, emails, warnings about arrears)
- Bank statements (proof of non-payment or partial payment)
Proof of service is critical. Use Special Delivery, hand delivery with receipt, or email with read receipt.
Key Dates and Thresholds
Item
Wales (Occupation Contracts)
Deposit prescribed info
Prescribed Information Notice within 30 days
Notice to remedy (Chapter 2)
14 days minimum to cure breach
Possession notice period (Section 173)
28 days minimum from service
Type of ground
Discretionary (judge decides)
Court
District Judge (civil courts)
Evidence required
Rent statement, Chapter 2 notice proof, comms log
Common Arrears Thresholds
While Welsh law doesn't set a hard "3-month" threshold like England's Ground 8, courts generally treat:
- Less than 1 month's arrears: Unlikely to grant possession without strong circumstances
- 1-2 months' arrears: Marginal; judge may refuse if tenant is trying to catch up
- 2+ months' arrears: Serious breach; judge more likely to grant possession
However, the court has discretion at every stage. Unlike England's mandatory grounds, Welsh courts balance fairness and proportionality.
Before You Serve a Chapter 2 Notice
Make sure:
- Occupation Contract is properly signed and documented
- Prescribed Information Notice was served within 30 days of tenancy start (if missing, the tenant can raise a defence)
- Rent statements are itemised and accurate - showing due dates, amounts paid, and arrears
- Comms log is complete - every message, email, or payment reminder dated
- You haven't waived the arrears - no informal agreements to "pay me what you can" without proper documentation
- You have proof of service for all notices - Special Delivery receipt, hand-delivery signed receipt, or email with read receipt
If the Prescribed Information Notice wasn't served, the tenant can claim a breach of their rights, and the court may refuse to grant possession.
Wales vs. England: What's Different?
Aspect
England (Section 8 Ground 8)
Wales (Section 173)
Tenancy type
Assured Shorthold Tenancy (AST)
Occupation Contract
Arrears threshold
Mandatory ground: 3+ months
Discretionary: typically 2+ months
First notice
Section 8 notice directly
Chapter 2 notice (14 days to remedy)
Possession notice
4 weeks minimum
28 days minimum
Court
County court
District Judge (civil courts)
Discretion
Mandatory if arrears stay at threshold
Always discretionary
Evidence
Rent statement, comms log
Rent statement, comms log, Prescribed Info Notice
Rent Arrears Don't Fall Away in Wales
One key difference: in England, if arrears drop below 3 months before hearing, Ground 8 falls away. In Wales, the judge still has discretion.
If the tenant pays down some arrears before the hearing, the judge might still grant possession based on:
- The pattern of payment (chronic lateness)
- The seriousness of the original breach
- Whether the tenant's made a genuine effort to catch up
- The balance of fairness
But there's no automatic "ground falls away" like England. You're always subject to the judge's discretion.
Key Steps to Possession
- Identify the arrears - itemised rent statement showing what's owed and for how long
- Serve a Chapter 2 notice - give the tenant 14 days to pay all arrears
- Document the breach - keep records of non-payment, reminders, and tenant's response
- Serve a Section 173 notice - if the tenant doesn't pay within 14 days
- Apply to court - submit your evidence and notices; court sets a hearing date
- Attend the hearing - present your evidence; judge decides whether to grant possession
- Bailiff removal (if necessary) - if the tenant doesn't leave voluntarily after the order
Timeline: 6-12 months from Chapter 2 notice to bailiff removal. Slower than England but more straightforward than waiting for a Chapter 2 remedy period.
What You Must NOT Do
- Don't serve a Section 173 without a Chapter 2 first - the notice is invalid
- Don't leave the Prescribed Information Notice unserved - tenant can use it as a defence
- Don't make informal payment deals and then evict anyway - judge will see it as waiver
- Don't serve without proper proof - Special Delivery or hand delivery; email only if agreed in writing
- Don't serve Section 8 notices in Wales - you're not in England; they don't apply
SelfLet and Welsh Landlords
Currently, SelfLet is built for England landlords using Section 8. We're planning Welsh Occupation Contract support (Chapter 2 notice generator, comms log, rent tracking) but haven't launched it yet.
If you're managing a Welsh property, keep immaculate records of:
- All rent payments and arrears
- Every message, email, or warning to the tenant
- Proof of service for all notices
- Your Occupation Contract and Prescribed Information Notice
When we launch Welsh support, all your records will feed into the system.
Welsh landlords: Occupation Contracts and Section 173 notices are your route to possession for rent arrears from 1 May 2026. Chapter 2 notice first (14 days to remedy), then Section 173 (28 days notice) if the tenant doesn't pay. The court has discretion - you'll need solid evidence and reasonable conduct.
Read our England Section 8 Ground 8 guide if you're managing properties in England.
Coming soon: SelfLet support for Welsh Occupation Contracts. Join our waitlist.