With further telecoms reforms taking effect in April 2026, Robert Jauneika - Director & Chartered Surveyor at H&H Land & Estates - explores what the latest changes mean for mast site valuations and the evolving 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.

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).

These upcoming changes represent further upheaval in the sector that began with the ECC in 2017, the impact of which was dramatic in terms of site rents offered by Operators. Prior to those reforms, rents for telecommunications sites were typically assessed using conventional market principles, with Landlords and Tenants largely left alone to negotiate their own rents between them. In practice, this meant that the strategic value of land to an Operator, often reflecting the profitability of operating a mobile network, was factored into the rental value of the specific site in question. As a result, annual rents for mast sites could reach many thousands of pounds and were treated much like other commercial leases, where one assumed both a willing Tenant and a willing Landlord.

The 2017 Code fundamentally altered that position by introducing the so-called "no scheme" valuation approach. 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 result has been a dramatic resetting of telecoms site rents across the country, with many landlords experiencing significant reductions when agreements are renewed. The policy rationale behind the change was made clear: by lowering the cost of access to land, the Government hoped to accelerate the rollout of digital infrastructure, particularly 5G and rural broadband networks.

However, until now, a discrepancy has existed between different types of agreements. Many older telecoms leases are protected under the Landlord and Tenant Act 1954, meaning that when they come to renewal the rent has been assessed using standard market rent principles rather than the ECC valuation framework.

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

From the 7^th April 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 effect of all of this is to harmonise the financial terms of telecoms site leases, including renewals, regardless of whether the agreement originated under the ECC or the 1954 Act. While landlords may still receive compensation for certain losses or disturbance, the headline rent will generally reflect the lower ECC valuation basis.

For landowners, the implications are significant. Thousands of legacy mast site agreements across the UK are expected to fall within the scope of the legislative changes as they reach renewal. The outcome will likely be further downward pressure on rents and a continuation of the 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. The challenge will be maintaining constructive relationships between Operators and the landowners, whose cooperation remains essential.

If you have a telecommunications site on your land, it is essential to fully interrogate the lease terms and understand the rent valuation approach that should be adopted, as well as all factors that can be considered when calculating the compensation arising from leases such as these. Professional advice is essential in these instances.