Telecoms on Your Land? Here’s Why Your Rent Offer Just Dropped

If you own land with telecoms equipment on it, you may have recently received a letter from an Operator asking to renew their lease. Perhaps you were expecting a rent increase in line with inflation, or at least a continuation of the existing rent. Instead, the offer on the table is dramatically lower than before. You might be wondering if this is a mistake? Unfortunately, it’s not. This sudden drop in rent isn’t due to a clerical error or a change in how much your site is worth to the Operator. It stems from a significant legal shift that occurred several years ago – one that continues to redefine the relationship between landowners and telecoms companies across the UK.

The root of the issue lies in the revised Electronic Communications Code (the Code), which came into force in late 2017. The Code was designed to make it easier and cheaper for telecoms Operators to roll out and maintain digital infrastructure – an essential part of the UK’s ambition to achieve fast, reliable connectivity nationwide. While this policy goal is understandable, the reforms have come at a cost to private landowners. The Code gives Operators stronger statutory rights to install, access, and maintain telecoms equipment on private land, even allowing them to remain in situ after an agreement expires. Most importantly, it changed how rent (or, “consideration”) is calculated when new agreements are made.

Under the current Code, site valuation is carried out on what’s known as a “no network” assumption. This means that when determining the rent, the site must be valued as if it were not being used to facilitate a telecoms network at all. In other words, the land should be assessed as though it’s simply being used for a general purpose like storage, parking, grazing, or otherwise as permitted under planning legislation.

Previously, telecoms sites attracted a “special value” because Operators depended on them to deliver mobile coverage, data connectivity and emergency services. This strategic importance meant Operators paid a premium rent. However, since the introduction of the “no network” assumption, that premium has effectively been stripped away. The result is rents that were once several thousand pounds a year have, in many cases, plummeted to just a few hundred. For many landowners – whether private individuals, farmers, local authorities, or businesses – the change has been both surprising and disappointing. Sites that once generated a healthy secondary income are now barely covering the administrative costs.

Beyond the financial aspect, negotiations under the new Code can also feel one-sided. Operators have statutory powers that can, in some cases, allow them to impose new agreements or seek Tribunal Orders if landowners don’t agree to their terms. That said, landowners do still have rights, and there is often scope to negotiate some aspects of the agreement.

If you’ve received a proposal from an Operator to renew or replace your telecoms lease, it’s important not to rush into signing anything. Take time to review the draft agreement carefully and consider seeking professional advice (from both lawyers and land agents/surveyors) about the level of rent proposed as well as in relation to the legal documentation. While rent levels are now governed by the “no network” principle, other terms remain negotiable. A well-negotiated agreement can still protect your land, your operations, and your peace of mind, even if the rent itself is now limited.

The legal and valuation principles behind the Code are highly technical and continue to evolve through case law. Operators often have experienced surveyors and solicitors acting on their behalf, so it’s worth ensuring you have professional representation too.

Speak to a specialist commercial property solicitor

At Holmes & Hills, our specialist commercial property team regularly assist landowners in agreeing legal documentation of this nature. We understand both the legal framework and the practical realities of managing land affected by telecoms equipment. Whether you are reviewing a new lease proposal, considering a renewal, or simply unsure what your rights are, we can help you assess your options and ensure you are not giving away more than you need to.