Telecommunications operators have been told they must increase the rent they pay landowners for rural mast agreements by more than 130%.
The Upper Tribunal (Lands Chamber) has ruled in favour of increasing the standard rental value of an “unexceptional” rural greenfield mast site from £750 per annum to £1,750, in a decision published late July.
Many landowners felt the previous reform of the Electronic Communications Code in 2017 was too heavily weighted in favour of telecoms operators who argued changes were needed for them to continue to invest in the improvement of the UK’s digital infrastructure.
The trial related to the renewal of a lease of a greenfield rural mast site at Vache Farm near Chalfont St Giles in Buckinghamshire. Operators EE and Hutchison 3G are the tenants at the site, with AP Wireless II (UK) their immediate landlord.
Paul Williams, Head of Telecoms at Carter Jonas, was appointed as the expert valuation witness for AP Wireless, and gave evidence to the tribunal.
He said: “This outcome moves the dial from the decision that was handed down by the Upper Tribunal in a case known as Dale Park in December 2020. That, and a subsequent decision in 2022 (Pendown Farm) suggested that a rental value of £750 was appropriate for what were considered to be “unexceptional rural” telecoms sites.
“Since the Dale Park decision, £750 per annum had been presented by telecoms operators to landowners as a fait accompli. If landowners objected, or challenged that figure, their only recourse was via tribunal at great risk and expense.
“Not only did the tribunal agree that the Dale Park decision needed to be looked at again, but it also informed us that the door isn’t shut if new evidence which does not offend the statutory basis of value for telecoms emerges. Aside from market evidence, the tribunal also sent a clear message that inflation should apply, including to those for other site types, such as rooftops.”
Given that some of those other decisions also date back to 2020, and inflation has been high during the subsequent period, increases across all site types will be significant, and welcomed by site providers.
“This will make a huge difference to many landowners who host telecoms sites, especially in rural settings, where the tribunal was persuaded that a greater-than-inflation increase should apply,” Mr Williams said.
“This isn’t about extracting huge amounts of money from the operators; it’s about receiving a payment that is reasonable for the rights that are being granted, and the burdens that inevitably come with hosting telecoms, rather than a less intrusive tenant, or more passive use.”
