Gov to Give UK Leaseholders Right to Request Gigabit Broadband in Flats UPDATE2

The Government has today published a new consultation on measures that aim to create a new right for leaseholders, such as those living in blocks of flats / apartments (Multi-Dwelling Units), to request a gigabit broadband connection. In addition, freeholders will face a new duty not to “unreasonably refuse” such requests from tenants. But finding the right balance will be difficult.

Previous governments have already done a fair bit of work in an attempt to make it both quicker and cheaper for gigabit broadband networks to access big residential buildings (MDUs) and for tenants to request faster connections, such as via the Telecommunications Infrastructure (Leasehold Property) Act 2021 (TILPA); this tackled situations where so-called “rogue landlords” failed to respond (here and here).

The TILPA changes essentially introduced a cheaper and faster route for dispute resolution via a new court process, although this only applies after a landlord has repeatedly failed to respond to requests for access. Despite those changes, the process for network operators that wish to obtain new wayleaves (legal land/property access agreements) from landlords to install full fibre lines inside MDUs remains slow, difficult and often expensive.

For example, it remains difficult for network operators to find and contact the ultimate owner or managing agent of a building, while in other cases the building owner may be incentivised to reject a rival network after having previously signed an exclusive deal with a different provider. But this limits the competitive choices available to tenants.

Incumbent vs rivals

The next challenge stems from the disagreement between Openreach and alternative networks. Openreach has long campaigned for automatic upgrade rights, so they gain permission to access buildings in order to convert their existing copper cables inside MDUs to fibre optic ones (at present they can only make changes to the copper network).

The issue of automatic upgrade rights in MDUs sounds fair and logical, but rivals have already warned that this must not result in a situation that grants special access to Openreach – without also affording opponents a fair level of comparable accessibility. Doing so, they warn, could risk handing the incumbent an unfair competitive advantage (here).

Meanwhile, the Independent Networks Co-operative Association (INCA), which represents many altnets, has proposed a non-legislative approach based on collaboration and education (here), which they say would bring landlords and landowners on board with the need to deliver full fibre to MDUs and the benefits this will provide to tenants. But politicians and operators have spent the past few years trying to do things like this and, as above, some challenges remain.

The new consultation

Earlier this year the government rejected an amendment to the Renters’ Rights Bill for England (here), which has since become an Act (law). The amendment aimed to make it easier to deploy gigabit broadband into large residential buildings (MDUs), albeit only where deployment had been unreasonably refused or landlords cannot be contacted.

At the time the government said this was because the amendments didn’t cover everything (e.g. leasehold flats in MDUs that are not rented) and they were, instead, “actively considering options to identify what would be the best interventions to facilitate gigabit broadband deployment in privately owned multiple dwelling units” (i.e. more consultation was required).

The government’s new consultation, which proposes measures to create a new right for leaseholders to request a gigabit broadband connection and a duty for freeholders not to unreasonably refuse the request, is thus an attempt to address the above concerns (before committing anything to legislation). The specific focus here is on addressing scenarios where the landlord is unknown by network operators, or where the landlord is not minded to engage with connectivity issues or the deployment needs in leasehold flats.

Minister for Telecoms, Liz Lloyd, said:

“Measures like these are about fairness and improving the playing field for consumers, giving them better broadband connectivity. Whether you’re in a block of flats, a house, or a rural property, we want everyone to have access to the fast, reliable broadband needed for modern life.

These proposed measures would help deliver better connectivity for properties that face additional challenges to gigabit broadband rollout, and will ensure all UK families can benefit from the digital age.”

Just to be clear. The new measures would apply specifically to leaseholders. Leaseholder landlords would be able to apply the new right on renters’ behalf. The consultation, which will run  until 16th February 2026, seeks more information on whether renters are impacted by the challenges seen in connecting leasehold properties. At the time of writing we haven’t yet seen the consultation document, but will link to it once we have.

However, property owners / managers also have concerns that must be balanced in all this (i.e. insurance, damage to property, security, safety (e.g. fire, asbestos) and other liabilities etc.). In particular, upgrading copper lines to fibre in MDUs is often a bit more involved than it may seem (it’s not always minor work) and not everybody may want that.

On top of that there’s the problem of “intermediate landlords” within leasehold ownership schemes. For example, a leaseholder under a headlease with a freeholder who has granted leases of flats to individual leaseholders in respect of which they are the landlord. Sometimes there is more than one “intermediate landlord” in respect of a flat. These arrangements create complexities for the new proposal, and the government are still trying to figure out the best approach.

Finally, the consultation will consider the awkward question of network competition. There may be circumstances where the leaseholder is not aware that appropriate gigabit-capable broadband infrastructure is available within the block of flats and the government states it would then be reasonable for a freeholder to refuse a connection, while noting the existing provision.

However, the government is also seeking views on whether the new right should be extended to cover circumstances where a leaseholder is seeking the provision of broadband infrastructure from an alternative wholesale network operator than those already present in the building, which would boost competition and consumer choice.

Extract from the Consultation

Whilst it is unlikely to occur in many instances, as network operator deployments tend to be to all flats in a block, we do not consider it would be reasonable for a freeholder to refuse a request where existing gigabit capable connectivity is available in the building but not to the flat in question.

Further, where a freeholder has been unable to obtain a connection previously, including through a refusal in response to a leaseholder request, this should not provide a reasonable ground to refuse a request. Given the expansion of networks, technological developments and the pace of gigabit broadband deployment, it is quite possible that the ability of a network operator to deploy may have changed. Whilst this is the case, a relevant freeholder should not have to repeatedly consider applications that are excessive, lack serious purpose or are repetitive, unless there is an evidenced change of circumstances.

Applications that are excessive or lacking in purpose could occur where there is no value in the application. An example of which would be where a leaseholder has access to appropriate multiple network operator infrastructure capable of providing a gigabit-capable broadband connection. Similarly, should a repeat request not include details as to why the circumstances have changed, such as through a network operators build plans changing for the block of flats, then the relevant freeholder should be able to refuse the request at the point of the acknowledgement.

Suffice to say, network operators and the government are walking a bit of a tightrope in terms of the rights of freeholders and leaseholders. But in the meantime, it’s worth remembering that introducing any new legislative changes around this, if ultimately deemed necessary, will also take time and attract more debate (we’d guesstimate up to around 1-2 years before it’s law).

UPDATE 7am

The consultation document can be found here.

UPDATE 11:14am

We’ve had a comment from Openreach.

An Openreach spokesperson said:

“We welcome the Government’s new consultation. It’s something we’ve long campaigned for to make sure no one’s left behind. We believe that everyone should have access to the latest broadband technology and it’s a zero cost move that will support growth in the economy. We’ll respond to the consultation and urge the Government to review responses and introduce legislation rapidly to benefit homes and businesses across the UK.”

UPDATE 11:29am

We’ve added a comment from the UK Internet Service Providers Association (ISPA).

Andrew Kernahan, Head of Public Affairs, ISPA UK, said:

“We welcome the government’s commitment to exploring interventions that will enable leasehold flat owners to access faster, more reliable broadband. With 72% of people saying it is important that internet providers continue to invest in infrastructure upgrades, this clear public backing for industry investment must be matched by regulation that supports, rather than delays, our members’ rollout of gigabit-capable broadband.

We also recognise the need to balance the rights of all stakeholders in this process. We look forward to engaging with these proposals, which take us a step closer to ensuring that no one is left behind as we move towards more resilient digital connectivity.”