The new Code addresses one of the main criticisms of the old Code. Under the old Code, a telecoms provider could enjoy security of tenure under both the 1954 Act (as a business tenant) and under the old Code (as a telecoms provider). This dual security made it very difficult for landlords of telecoms leases to bring those leases to an end.
The new Code removes telecommunications leases (that is, leases whose primary purpose is to grant Code rights) from the protection of the 1954 Act. Instead, telecoms providers enjoy security of tenure under the new Code only.
In order to terminate a telecommunications lease granted after 28 December 2017, a landlord will need to follow the procedure set out at Part 5 of the Code. A landlord must give the telecoms provider at least 18 months' notice to quit, and then establish one of the following prescribed grounds:
These grounds are significantly more limited than those available to landlords opposing lease renewals under the 1954 Act. Despite removal of the dual protection, the new Code therefore still gives significant protections to telecoms providers.
Landlords will need to bear this in mind when considering whether to grant Code rights to telecoms providers, or when planning the future use of property which is subject to a Code agreement.