Understanding the Telecommunication Code
What Property Owners and Landlords Need to Know
Navigating the Telecommunication Code: How It Impacts Property Owners
The telecommunication landscape has rapidly evolved, and as a property owner or landlord, you may already be aware of the growing importance of telecommunication infrastructure.
Introduced as part of the Digital Economy Act 2017, the updated Telecommunication Code, commonly known as such, has brought significant changes to the way telecommunication agreements are managed.
Designed to promote digital connectivity across the UK, these regulations primarily benefit telecommunication operators, but they also have considerable implications for property owners and landlords who lease sites to Mobile & Network Operators.
Key Changes Under the Telecommunication Code
The updated Telecommunication Code introduced a framework that allows network operators to access private and public land to install, maintain and upgrade telecommunication infrastructure. While this aims to streamline digital connectivity across the UK, it presents unique challenges for property owners:
Significant Reductions in Rental Values
The Code’s valuation model is primarily based on Compensation rather than a true ‘Market Value’ approach – discounting the presence of the Operator’s equipment and any goodwill attached to the premises.
The consequential impact on site rental values far exceeds the 40% reduction (£20,000 rent – on what was a typical urban site rent) that the Government was hard lobbied on, and ever anticipated.. The Code has extinguished landlord desirability for telecom mast infrastructure, which in turn has severely hampered 5G rollout. This is the exact opposite of the Code’s intended purpose..!
Extended Lease Periods and Security of Tenure
The Code confers increased security of tenure, enabling the Operators to renew and extend agreements on more secure basis. This limits a landlord’s flexibility in negotiating new terms or removing equipment leading to serious implications should redevelopment be contemplated.
Complex and Costly Dispute Resolution Process
In instances where agreement cannot be reached – usually centring on the over-arching rights of Operators, disputes can be fast-tracked to the Upper Tier Tribunal (Lands Chamber). This process, though intended to be impartial, is time-consuming and costly for landlords, often requiring specialist legal advice to ensure fair representation.
Open Access Rights
The Code grants operators extensive access rights, often against the wishes of property owners. This can result in a loss of control, leading to security as well as health & safety issues for landlords. This is especially the case if these rights conflict with other tenants, or a building’s restrictions and uses.
How These Changes Affect Property Owners and Landlords
The new Code regime (emanating from the Digital Economy Act, 2017), together with various Infrastructure bills since, have impacted property owners in multiple ways.
Landlords of existing telecom sites, be it on high-rise buildings or other prime locations are now seeing stark reductions in rental value, but ultimately, and more concerningly, a loss in control over their property assets.
Inflexible leases, coupled with lengthy termination periods impacts future plans including redevelopment, and increased access rights raise potential concerns over liability and operational disruption.
The imposition of Code risk extends to every landlord, particularly property in urban locations which may be suitable for mast/network infrastructure purposes. The Code is akin to Compulsory Purchase, which in the context of ownership & use carries consequences.
Navigating these changes requires an informed approach. With these challenges in mind, the team at Arc offers specialised guidance for property owners and landlords affected by the updated Telecommunication Code, helping you manage both the immediate impacts and long-term implications.
How Arc Partners Supports You Under the Telecommunication Code
With a team of specialist Chartered Surveyors and industry experienced professionals, Arc Partners is dedicated to helping property owners understand and navigate the complexities of the two Code regimes.
Our tailored consultancy services ensure that your interests are protected and we work closely to safeguard your property.
Here’s how we support landlords and property owners affected by the Telecommunication Code:
Negotiation & Valuation Guidance
We provide expert advice on how the Code’s valuation model affects rental income and mitigate loss through compensation.
We will guide you through all agreement negotiations, ensuring that terms negotiated afford as much protection to you the landlord, and the property’s value.
Dispute Resolution and Legal Support
If disputes arise, we offer guidance on navigating the tribunal process and collaborate with our legal partners to ensure that your case is presented effectively and cost-efficiently.
Health and Safety Compliance
Ensuring that telecommunication infrastructure complies all relevant regulation, most poignantly, the Building Safety Act 2022, which is carries criminal liability, and where adherence is essential for landlords and occupiers.
RF (Radio Frequency)
With mast infrastructure and the increasing requirements of generational technologies, namely ‘5G’, the occupational risk of radio frequency, and how base stations are designed & operated has never been greater.
We work with experts in health and safety to safeguard your property and maintain compliance with regulatory requirements.
Building and Structural Impact Analysis
Telecommunication equipment installation can impact building integrity and aesthetics. Our structural engineering experts assess the impact of telecom scheme and related proposals, installations , ensuring that installations meet industry standards and align with your requirements.
Why Choose Arc Partners?
At Arc Partners, we understand that property owners and landlords require clarity and control over their telecommunication site agreements. With years of experience and specialised expertise in telecommunication regulations, we offer a balanced, client-centred approach that aligns with your property management goals.
By choosing Arc Partners, you gain:
- Access to a team of experienced professionals with a deep understanding of the Telecommunication Code
- Personalised support focused on maximising the value of your property
- A trusted network of legal, planning and engineering experts for comprehensive guidance
- Peace of mind in knowing that your interests are protected amidst complex and evolving regulations
Contact Us to Learn More
If you’re a property owner or landlord looking to understand how the Telecommunication Code impacts your assets, Arc Partners is here to help.
Contact our team to discuss how we can support you in navigating telecommunication site agreements with confidence and control.
