Telecoms mast lease valuation reforms start April 2026

The changes, introduced through the Product Security and Telecommunications Infrastructure Act 2022, will take effect on April 7, 2026 and are expected to reshape how rents for telecoms sites are assessed when leases are renewed.

According to Robert Jauneika, director and chartered surveyor at H&H Land & Estates, the reforms represent the next phase in a long-running transformation of the relationship between operators and landowners.

“The relationship between telecommunications operators and landowners in the UK has been evolving for nearly a decade now, and the upcoming implementation of further changes introduced by the Product Security and Telecommunications Infrastructure (PSTI) Act 2022 marks another significant milestone,” he said.

“When sections 61–64 of the Act come into force in April 2026, they will once again reshape how telecoms mast site rents are assessed and valued, bringing increasing alignment between traditional lease renewals (under the Landlord & Tenant Act 1954 etc) and the valuation approach introduced in 2017 as part of the Electronic Communications Code (ECC).”

The changes build on the reforms introduced through the Electronic Communications Code 2017, which dramatically altered the way telecoms site rents are calculated.

Prior to those reforms, rents were typically negotiated using conventional commercial market principles. In many cases the strategic importance of the land to a network operator, including the profitability of running a mobile network, influenced the rental value of the site.

As a result, mast sites could command annual rents running into many thousands of pounds.

“The 2017 Code fundamentally altered that position by introducing the so-called ‘no scheme’ valuation approach,” Mr Jauneika explained.

“Under this methodology, the value of the site is assessed on the assumption that it is not being used to provide an electronic communications network. In effect, the rent is based on the underlying land value rather than the value of the telecommunications use itself.”

The effect has been a significant reduction in rents for many landowners when agreements have come up for renewal. The Government’s intention, however, was to lower the cost of land access in order to accelerate the rollout of digital infrastructure, particularly 5G and rural broadband.

Until now, a difference has remained between agreements governed by the Electronic Communications Code and older leases protected under the Landlord and Tenant Act 1954. In those cases, rents have generally continued to be assessed using traditional market principles.

“This is the gap the PTSI Act seeks to close, to the benefit of Operators, and (once again) the detriment of landowners/site providers,” Mr Jauneika said.

“From April 7, 2026, the PTSI Act will formally amend the 1954 Act so that telecommunications lease renewals under that regime adopt the same valuation assumptions used under the ECC.

“In practice, this means that rents for these leases will be assessed using the same ‘no network’ approach as Code agreements.”

The changes will effectively harmonise the financial terms of telecoms site leases regardless of whether they originated under the Electronic Communications Code or the 1954 Act.

While landowners may still receive compensation for certain losses or disruption, the headline rent is expected to reflect the lower valuation approach.

For many landowners, the implications could be significant.

Thousands of older mast agreements across the UK are expected to fall within the scope of the new rules as they reach renewal, potentially placing further downward pressure on rents and prolonging valuation disputes that have characterised the sector since 2017.

“Ultimately, from a policy perspective, the Government’s objective is clear: to remove perceived barriers to the deployment of digital infrastructure,” Mr Jauneika added.

“The challenge will be maintaining constructive relationships between Operators and the landowners, whose cooperation remains essential.”

He concluded advising that landowners hosting telecommunications equipment should carefully review the terms of their agreements and understand how rents and compensation will be assessed when leases come up for renewal.