Charging Ahead: What Landlords Need to Know About EVCP Leases

The UK's commitment to banning the sale of new petrol and diesel cars from 2030, coupled with the legally binding target of reaching net zero by 2050, is driving a rapid expansion of electric vehicle charging infrastructure across the country. Electric vehicle charging points ("EVCPs") are becoming an increasingly familiar sight, and property owners with large portfolios are already moving to secure installations at their sites.

The commercial incentive is clear. Subsidies on EVCPs are available to private landowners, and the growth in electric vehicle usage has been significant — recent government data showed that over 1.5 million electric vehicles were licensed in March 2025, representing a 38% increase on the previous year. Against that backdrop, landlords are keen to carry out installations now, both to attract a growing number of electric vehicle drivers to their properties and to stay ahead of the curve as the 2030 ban approaches. In most cases, this is achieved by granting a lease to an EVCP operator.

As leases to EVCP operators become more prevalent — and, within the next decade or two, a practical necessity — property owners will need to give careful thought to the terms on which they are prepared to grant such leases. This article examines some of the key provisions that we would expect to see in a lease of this nature, as well as additional protections that landlords may wish to include in order to safeguard their reversionary interest in the land.

Term and Rent

Leases to EVCP operators are typically granted for longer terms, sometimes up to around 25 years, although shorter leases can be granted and where the party installing the chargers is itself an occupational leaseholder, the term will often be co-terminus with its existing occupational lease. In terms of consideration, rent tends to sit in the region of £2,000 per annum per EVCP, rising in line with inflation, together with an additional profit share arrangement to be agreed between the parties.

Substations

Power supply is a critical consideration in any EVCP installation. Substations are frequently required as part of the works, and even where a substation is not specifically needed by the EVCP operator, landlords should assess whether the existing electricity supply is capable of supporting the running of EVCPs without adversely affecting supply to other parts of the property. Where a substation is required, either a transfer of part of the freehold or the grant of a long lease — usually 99 years or longer — to an electricity operator will typically form part of the overall transaction.

Guarantees and Direct Agreements

Many EVCP operators are at a comparatively early stage of commercial development and are generally funded largely by debt, which can make them less secure than more traditional tenants. In light of this, landlords should consider insisting on a guarantor with stronger covenant strength to stand behind the tenant's obligations under the lease. An alternative approach is to require funder step-in provisions, under which the funder of the EVCP operator (ie a bank or a more specialised lender) would operate the EVCPs on a short-term basis whilst sourcing an alternative operator. It should be noted, however, that funders may resist such provisions where they lack the requisite experience to step in and manage the EVCPs on the tenant's behalf.

“Lift and Shift” Provisions

Lift and shift provisions — which entitle a landlord to require the tenant to relocate its equipment to a different part of the site in order to facilitate redevelopment or other works to the property — are particularly important from a landlord's perspective. These provisions should be included in any substation lease, and landlords would be well advised to seek their inclusion in the EVCP lease as well. It is worth noting, however, that any relocation will likely need to be carried out at the landlord's expense, and depending on the nature of the equipment installed, the costs involved could be considerable.

As an alternative, a landlord might consider incorporating a landlord-only break right, enabling it to terminate the lease where an alternative site cannot be identified or agreed with the operator, subject to the payment of a break fee. Where this is the case for a lease that is inside the Landlord and Tenant Act 1954, the parties will need to be careful in ensuring that they follow the statutory process for terminating the lease should the Landlord exercise its break right.

EVCP-Specific Provisions

Due to the nature of EVCPs, it is not uncommon for EVCP leases to contain clauses that would not typically be found in more conventional office or retail leases. These may include an obligation, for example, on the landlord and tenant to ensure that the EVCPs remain visible from a public highway in order to attract customers, as well as an obligation on the landlord to enter into supplemental agreements with electricity or other utility providers to ensure continuity of power supply.

Operators may also seek rights to display commercial advertisements on the screens of each charging station. Whilst this is not in itself problematic, landlords would be well advised to include protections in the lease to ensure that any promotional material is appropriate for the surrounding area and compatible with any other business being carried out by the landlord or its other tenants on adjoining land. From a practical standpoint, it is also important to include a tenant covenant restricting the blocking of access roads by vehicles queuing to use the EVCPs. Beyond these examples, additional bespoke provisions will need to be assessed on a case-by-case basis.

Conclusion

With electric vehicle usage continuing to rise and the 2030 ban on the sale of new petrol and diesel cars drawing closer, the demand for EVCP infrastructure is only set to grow. Landlords who act now stand to benefit from available government subsidies and the opportunity to position their properties as attractive destinations for an expanding base of electric vehicle drivers. Getting these leases right from the outset is essential to safeguarding a landlord's reversionary interest and ensuring a smooth, commercially beneficial arrangement for all parties involved. If you would like to discuss any of the points raised in this article, please do not hesitate to get in touch.