Lesson 1 – Section 173 Notices

Learning Objectives

By the end of this lesson, learners will be able to:

• Understand the purpose of a Section 173 notice.
• Identify when a Section 173 notice can be served.
• Understand the notice periods that apply.
• Recognise restrictions that may prevent a notice from being served.
• Understand the compliance requirements that must be met before possession can be sought.
• Avoid common mistakes that can invalidate possession proceedings.

Introduction

One of the most significant possession procedures available to landlords in Wales is the Section 173 notice under the Renting Homes (Wales) Act 2016.

A Section 173 notice allows a landlord to seek possession of a property without having to prove that the contract-holder has breached the occupation contract. For this reason, it is often referred to as a no-fault possession procedure.

Although Section 173 provides landlords with an important route to recovering possession, it is heavily regulated. Strict rules govern when notices can be served, how much notice must be given, and what legal obligations landlords must satisfy before possession proceedings can begin.

Failure to comply with these requirements may result in the notice being invalid and possession proceedings failing.

What Is a Section 173 Notice?

A Section 173 notice is a legal notice served by a landlord to end a periodic standard occupation contract.

The notice informs the contract-holder that the landlord intends to seek possession of the property after the notice period expires.

Importantly, the landlord is not required to prove:

• Rent arrears.
• Anti-social behaviour.
• Breach of contract.
• Property damage.
• Any wrongdoing by the contract-holder.

The notice simply allows the landlord to recover possession through a prescribed legal process.

Why Section 173 Exists

The legislation recognises that landlords may need to recover possession for legitimate reasons unrelated to the conduct of the contract-holder.

Examples include:

• Selling the property.
• Occupying the property personally.
• Housing family members.
• Restructuring a property portfolio.
• Ending a letting arrangement.

The law therefore provides a mechanism for possession without requiring fault on the part of the contract-holder.

Purpose of Section 173

The primary purpose of Section 173 is to provide a lawful method for ending a periodic standard occupation contract.

The notice serves several important functions.

Provides Notice to the Contract-Holder

The notice gives the contract-holder advance warning that possession is being sought.

This allows time to:

• Secure alternative accommodation.
• Arrange removals.
• Seek advice if necessary.
• Prepare for relocation.

Protects Landlords’ Rights

The notice enables landlords to regain possession lawfully while complying with Welsh housing legislation.

Encourages Certainty

The procedure provides a clear framework for both parties and reduces uncertainty regarding the termination of occupation contracts.

When Section 173 Notices Can Be Served

A Section 173 notice is generally available only for periodic standard occupation contracts.

Before serving a notice, landlords must confirm the type of occupation contract in place.

Periodic Standard Occupation Contracts

Section 173 is commonly used where:

• The contract was periodic from the outset.
• A fixed-term contract has ended and become periodic.
• A converted periodic occupation contract exists.

Identifying the Contract Type

Before serving a notice, landlords should review:

• The occupation contract.
• The written statement.
• Any renewal agreements.
• Previous tenancy documentation.

Serving the wrong notice for the contract type may invalidate possession proceedings.

Practical Example

A landlord grants a twelve-month fixed-term standard occupation contract.

When the fixed term expires:

• The contract-holder remains in occupation.
• Rent continues to be paid monthly.
• No new agreement is signed.

The occupation contract may become periodic.

A Section 173 notice may then become available if all legal requirements are satisfied.

Notice Periods

The notice period is the length of time between service of the notice and the date on which possession may be sought.

Minimum Notice Requirements

Landlords must provide the notice period required by the legislation in force at the time the notice is served.

The notice must clearly state:

• The date it is served.
• The date possession is sought.
• The relevant legal provisions.

Importance of Correct Notice Periods

Providing an incorrect notice period can result in:

• The notice is invalid.
• Delays in possession proceedings.
• Additional costs.
• The need to restart the process.

Landlords should always verify current legal requirements before serving a notice.

Calculating Notice Periods

Care should be taken when calculating dates.

Errors often occur because landlords:

• Count dates incorrectly.
• Miscalculate service dates.
• Use outdated notice periods.
• Rely on incorrect information.

Accurate date calculation is essential.

Restrictions on Service

Not every landlord can immediately serve a Section 173 notice.

The Renting Homes (Wales) Act 2016 imposes various restrictions designed to protect contract-holders.

Early Occupation Restrictions

In some circumstances, landlords may be prohibited from serving a Section 173 notice during the early stages of an occupation contract.

The legislation is intended to prevent landlords from granting contracts and immediately seeking possession.

Retaliatory Possession Protections

Contract-holders are protected from retaliatory possession action in certain circumstances.

For example, where a contract-holder raises legitimate concerns regarding property conditions or landlord compliance.

Non-Compliance Restrictions

A landlord who has failed to comply with legal obligations may be prevented from relying upon Section 173.

Examples include failures relating to:

• Written statements.
• Property condition obligations.
• Statutory requirements.
• Other prescribed obligations.

Importance of Compliance

Before serving any notice, landlords should ensure all legal obligations have been satisfied.

Failure to do so may invalidate the notice and prevent possession proceedings.

Compliance Requirements

Compliance is one of the most important aspects of a successful Section 173 possession claim.

The court will often examine whether the landlord has complied with statutory obligations before granting possession.

Written Statements

Landlords must generally provide a written statement of the occupation contract within the required timescale.

The written statement should accurately reflect:

• Fundamental terms.
• Supplementary terms.
• Additional terms.
• Rights and obligations.

Failure to provide the written statement may create difficulties when seeking possession.

Fitness for Human Habitation

The property must comply with Welsh fitness for human habitation requirements.

These obligations may include matters relating to:

• Safety.
• Repairs.
• Heating.
• Electrical safety.
• Smoke alarms.

Non-compliance may affect possession proceedings.

Deposit Compliance

Where a deposit has been taken, landlords should ensure they have complied with applicable deposit protection requirements.

Failure to comply may create legal complications.

Accurate Documentation

Landlords should retain:

• Occupation contracts.
• Written statements.
• Rent schedules.
• Inspection records.
• Correspondence.
• Certificates and compliance documents.

Proper documentation helps demonstrate compliance if possession proceedings become necessary.

Serving a Section 173 Notice

When serving a notice, landlords should follow the service provisions contained within the occupation contract and legislation.

Methods of Service

Service may occur through methods such as:

• Personal delivery.
• First-class post.
• Recorded delivery.
• Email where permitted.

Landlords should always retain evidence of service.

Evidence of Service

Examples include:

• Certificates of posting.
• Delivery confirmations.
• Signed acknowledgements.
• Witness statements.

If a dispute arises regarding service, evidence may become essential.

After the Notice Expires

A Section 173 notice does not automatically end the occupation contract.

If the contract-holder remains in occupation after the notice expires:

• The landlord cannot change locks.
• The landlord cannot remove belongings.
• The landlord cannot force the contract-holder to leave.

Instead, the landlord must follow the legal possession process.

This usually involves applying to the court for a possession order.

Only once a possession order is obtained and enforced can possession lawfully be recovered.

Common Mistakes Made by Landlords

Common errors include:

• Serving the wrong notice.
• Using outdated forms.
• Miscalculating notice periods.
• Failing to provide a written statement.
• Ignoring compliance requirements.
• Failing to keep evidence of service.
• Seeking possession before the notice expires.

These mistakes can result in delays, additional costs, and unsuccessful possession claims.

Best Practice for Landlords

Before serving a Section 173 notice, landlords should:

• Confirm the contract type.
• Check compliance obligations.
• Review written statements.
• Verify notice periods.
• Calculate dates carefully.
• Retain copies of all documentation.
• Obtain professional advice where necessary.

A well-prepared possession claim is far more likely to succeed.

Lesson Summary

Section 173 notices provide landlords with a no-fault route to recovering possession of properties occupied under periodic standard occupation contracts. Although landlords do not need to prove wrongdoing by the contract-holder, strict legal requirements apply.

Landlords must understand when notices can be served, comply with notice periods, satisfy all statutory obligations, and avoid restrictions that may invalidate the notice. Proper preparation, compliance, and record-keeping are essential for successful possession proceedings.

In the next lesson, learners will examine Section 182 serious rent arrears notices and the circumstances in which landlords can seek possession based upon significant unpaid rent.