Section 34B: Compensation for exercise of code rights

Landlord and Tenant Act 1954 · 1954 c. 56View on legislation.gov.uk

Part II: Security of Tenure for Business, Professional and other Tenants

This section applies where—

the court grants a new tenancy by an order under this Part of this Act,
the primary purpose of the new tenancy is to confer code rights,
the tenancy subsisting at the time the order is made is a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, and
the primary purpose of that tenancy was to confer code rights.

The court may order the tenant to pay compensation to the landlord for any damage or loss that has been sustained or will be sustained by the landlord as a result of the exercise of any of the code rights conferred by the new tenancy.

An order under subsection (2) may be made—

at the time the court makes the order granting the new tenancy under this Part of this Act, or
at any time afterwards, on the application of the landlord.

An order under subsection (2) may—

specify the amount of compensation to be paid by the tenant, or
give directions for the determination of any such amount.

Directions under subsection (4)(b) may provide—

for the amount of compensation to be agreed between the landlord and the tenant;
for any dispute about that amount to be determined by arbitration.

An order under subsection (2) may provide for the tenant—

to make a lump sum payment,
to make periodical payments,
to make a payment or payments on the occurrence of an event or events, or
to make a payment or payments in such form or at such other time or times as the court may direct.

Section 34C makes further provision about compensation in relation to the exercise of code rights conferred by a tenancy under this Part of this Act.

In this section, references to “code rights” are to be read—

in relation to the new tenancy, in accordance with paragraph 3 of the electronic communications code set out in Schedule 3A to the Communications Act 2003;
in relation to a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, in accordance with paragraph 3 of that Schedule.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.