If slow, poor, unpredictable internet coverage has been one of your woes as a tenant, you will welcome the news that the new Telecommunications Infrastructure (Leasehold Property) Bill is soon set to become law. The government will now seek industry and local authority views on the strategy to define small and large procurement boundaries, as well as ensuring that priority areas are served. If you are a landlord, this is something to be aware of, especially if you own a buy to let property, be it mutliple flats or a simple apartment.

This is part of the Building Digital UK (BDUK) initiative to deliver broadband networks to the nation.

Only 38% of UK MPs believe the rollout of gigabit-capable networks is a success, and only 34% are confident that the country will achieve its target of 85% gigabit coverage by 2025.

But rising demand for high-speed internet – both broadband and mobile – for personal and professional use, accelerated by the pandemic, has made meeting digital infrastructure targets ever more important.

What Is The Aim of This Project?

The Government is investing £5bn to deliver fast reliable broadband for everyone in the UK, levelling-up hard-to-reach premises and delivering next generation connectivity. More than 50 percent of UK homes and businesses – 15 million properties – can now access the fastest broadband speeds available, with 60% of all households to have access to gigabit-capable speeds by the end of the year. More than a thousand schools are now enjoying gigabit internet speeds, thanks to government investment.

This Project Gigabit update includes the sequencing and dates of English Phase 3 rural projects, covering around 500,000 premises in Essex, Lincolnshire, Devon & Somerset, Herefordshire & Gloucestershire, Dorset, Cheshire, and North Yorkshire. It also includes an update on Project Gigabit Phase One and Phase Two Delivery Plans.

An additional £8 million has been announced to deliver full fibre to 3,600 premises in Scotland, as part of the Scottish Government’s R100 project, and £25 million to connect rural and remote parts of Northern Ireland.

How Will It Work?

The new law will make the process slightly easier for tenants by implementing a significantly cheaper and faster route for dispute resolution via a new tribunal process.

It is worth noting that this will only apply to landlords who have repeatedly refused or failed to respond to requests and make them face a greater obligation to help facilitate the deployment of digital infrastructure when they receive a request from their tenants.

Current Issues

Reconciling private property rights with the need to speed up the delivery of new digital infrastructure is a challenge. Landowners understandably want to minimise disruption that can be caused by works and be fairly compensated for the use of their property, while operators want to expand networks and upgrade equipment without delay.

The Code represented an attempt to strike the right balance between the competing interests. However, disagreements over how the Code applies have persisted. A slew of cases have been brought before the Upper Tribunal (Lands Chamber) (England & Wales) and Lands Tribunal (Scotland), and appeals to the higher courts – including three conjoined appeals due to be heard in February 2022 in the UK Supreme Court.

Some disputes have centred on the rights of operators to move from ‘old’ agreements, formed under the previous Code, to new agreements governed by the Code under which operators enjoy greater rights. Other disputes have concerned interpretation of the Code and its transitional provisions, the rights to upgrade and share apparatus and the value of rights. Further problems have arisen due to the unresponsiveness of parties in negotiations.

The combination of legal uncertainty, an uneasiness and sometimes hostility in relations between parties, and a marked uptick in disputes is a barrier to better digital connectivity.

Property Developers … Take note!

Any future new-builds will have to be constructed taking into consideration the installation of high-quality digital infrastructure from the outset as this will become a development priority. We recommend also ensuring that broadband companies are on board at the inception stage to avoid any complications or extra costs down the line.

The aim of the legislation changes will be to ensure that internet speeds are over 1,000 megabits per second (Mbps) up to a cost cap of £2,000 per dwelling.

To make sure developers are incentivised to follow the plans, the government will contribute to the costs of installing gigabit broadband in new-build homes to a certain percentage by making deals with broadband providers.

Will Office Blocks Be In Scope In The Future?

We predict that office blocks and business parks will likely be in scope both from a new development perspective and an existing infrastructure standpoint in the near future. 

For more information about Gigabit Broadband rollout, click here: Building Digital UK

If you have any questions with regards to the impact this will have on your property and how to deal with it, we would be delighted to assist. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.