The Ongoing Burden of the Electronic Communications Code 2017 on Property Owners
The Electronic Communications Code 2017 was intended to provide extensive rights to mobile network Operators while ensuring property owners were not financially disadvantaged for hosting telecoms infrastructure. However, in practice, the Code continues to create significant financial and legal challenges for landlords.
One key issue is the Lift & Shift provisions in telecoms leases—also referred to as “Code Agreements” by Operators. Under recent Tribunal rulings, landlords are now limited to requesting a relocation of telecoms equipment only twice in a 10-year lease term. If further relocation is required—whether for essential maintenance or development—the landlord must cover the full cost.
In CTIL v L&Q [2020], Martin Rodger KC noted:
“The notion that landowners should pay for lift and shifts is ludicrous… [the parties] are out of their minds if they thought the landowner should pay.”
Yet, subsequent rulings have reinforced this financial burden on property owners.
The Reality for Landlords
Amsy Chartered Surveyors recently advised a client who needed to temporarily relocate a telecom installation to carry out essential roof repairs. The operator’s response was a demand for an estimated £194,000 to move and reinstate the site, including costs for cranes, scaffolding, design drawings, and surveys. Their solicitor stated:
“Our client instructs us that the forecast cost to our client of carrying out the relocation of the Site to an alternative location (assuming it is on the roof of the building as required by clause 15.3) and its return to its original position will be, initially, somewhere in the region of £194,000 (to include assumptions regarding a requirement for crane, scaffolding or MEWP and preparations of design drawings and ancillary surveys etc). Our client requires sufficient comfort that your client is able and willing to meet those costs and has instructed us to confirm a solicitor’s undertaking will be given to cover our client’s costs. In the event your client intends to rely upon the Relocation Notice, please confirm when you anticipate being placed in funds.”
This raises serious questions. How is a landlord expected to cover such costs when the average annual rent for a rooftop telecoms site is around £5,000?
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