A new Electronic Communications Code now governs telecommunications apparatus on land and buildings. The code gives telecommunication network operators the right to take property owners to court if they refuse permission to install equipment, such as mobile phone masts. It also limits landlords’ ability to remove apparatus when leases expire.

Landlords who host apparatus on their property should seek professional advice to understand how the code may affect their property value.

The government wants to align rents with those paid by utilities and other essential service providers through a “no scheme” valuation system. The code now values land based on what the landowner receives rather than what the operator would pay. This change will likely reduce rents and compensation for land use. Landlords may face higher costs due to disputes over compensation rates.

Operators can now upgrade or share their equipment without seeking landlord consent. Landlords will lose the ability to earn extra income from additional apparatus or site-sharing agreements. If an operator assigns its rights in the equipment or lease, landlords cannot negotiate new terms.

The new code explicitly prohibits landlords from contracting out. Landlords cannot secure terms that are more favourable than those specified in the code.

If landowners refuse consent for equipment installation, the code provides a faster dispute resolution process. This change reduces delays and legal costs.

Operators cannot rely on the Landlord and Tenant Act 1954 for security of tenure under the new code. Landlords must follow termination procedures, but the code clarifies when they can remove apparatus. If operators fail to issue a counter-notice, landlords may remove equipment once code rights expire.

The code applies only after it comes into effect and does not affect existing contracts.

Previously, rents made hosting telecommunications equipment an attractive option for landowners. The “no scheme” valuation system will likely reduce these returns. In addition, the inability to contract out places landlords in a weaker negotiating position compared to the old code.

Landlords with telecommunications apparatus on their land or buildings should seek valuation and legal advice to understand the new Electronic Communications Code. For guidance, contact Chris Jakes.