Not so new Code on the block with landowners: What landlords need to know when operators want a better deal for the lease of a telecoms site

If you’ve got telecoms equipment (like a mobile mast or antenna) on your land or rooftop, chances are you’ve heard of the Electronic Communications Code. For those landlords with leases of those sites which predate 2017, the ”new” code introduced in 2017 is raising very current headaches. With much more advantageous terms for operators, this not so new code is not a hit with landowners.

A quick recap: What changed in 2017?

Before 2017, telecoms agreements were largely commercial agreements between landlords and operators. Landlords had a fair bit of leverage in negotiating favourable terms. About turn in 2017 when the revised Electronic Communications Code came into force.

Introduced as a push to remove barriers to installing a better and complete mobile network, the new Code gives operators far greater rights to insist on access to private land and the installation of telecoms equipment. Landlords are significantly restricted in negotiating power and rules fixed for valuing annual payments. If an agreement is absent, an operator, can apply to the Lands Tribunal to have ,agreements imposed on a property owner.

How does that affect agreements pre 2017?

The Code gives telecoms companies the legal power to end existing agreements and to replace them with new ones - usually with terms that are much more favourable to them (and far less generous to you). One of the most significant changes made by the Code is to legislate how annual site payments should be valued. Valuation is on a ‘no network’ basis which has generally seen a significant drop in value.

What does a “no network” valuation mean?

In the recent Lands Tribunal case of EE Ltd vs AP Wireless II (UK) Ltd, the Tribunal reaffirmed that site value is assessed on the basis that the land is not being used for telecommunications. This strips out any ransom value attributable to the operator’s need for the site and ignores the value to the Operator’s business.

The judgment sets out a structured three-stage approach:

1. Identify the alternative use value of the site

   The starting point is what the land would be worth absent its telecoms use—typically agricultural, rooftop, or other low-value uses.

2. Apply a baseline informed by comparable “non-telecom” evidence

   The Tribunal endorsed the valuation in EE Ltd v London Borough of Islington (Vache Farms case), using established baselines for similar categories of land (£1,750 pa for a rural site). It made clear that looking at comparable telecoms site payments agreed between other parties was of no assistance. The Tribunal’s position is that such comparables are contaminated by the very network value that the Code requires to be disregarded.

3. Adjust for inflation and site-specific factors

   Limited uplifts may be applied, but these are modest and tightly controlled.

Can an operator bring my existing code agreement to an end to secure a replacement agreement on more favourable terms?

Not necessarily. An operator still has to satisfy certain conditions to do so:

1. They must already have Code rights

   That means they’ve already got a code agreement in place, under the older rules or the 2017 Code.

2. The current agreement has ended or they’ve terminated it properly

   An operator has to wait at least until the end date set out in a lease unless there is some other basis to bring it to an end more prematurely e.g. break option, right to terminate.

3. They’ve served a Paragraph 33 notice

   This is a legal notice proposing the terms for a new agreement. This gives some breathing space to negotiate on terms before the matter can be referred to the Lands Tribunal.

If you’re a landlord, here’s what to do

The moment you get a notice (or even a hint that a renegotiation is coming) don’t ignore it. Follow these steps:

1. Get legal advice early

   The rules are complex, and deadlines matter. A solicitor with experience in telecoms property law can help you make sense of what’s happening and how to respond strategically.

2. Claim your professional costs

   You’re entitled to have your reasonable costs covered (including solicitor and surveyor fees) for advice and negotiation. So there’s no reason to face it alone.

3. Push for proper compensation

   If the operator’s presence causes disruption, impacts development plans, or reduces property value, you can seek compensation under the Code.

4. Negotiate the new terms carefully

   Even if a new deal is likely, you don’t have to accept whatever they offer. You can negotiate things like access rights, maintenance obligations, notice periods, and rent payment terms.

5. Flag up any redevelopment plans

   If you have genuine plans to develop or repurpose the site, that could be grounds to resist a new agreement altogether (provided you have solid evidence and legal support).

Final Word: Don’t wait until it’s too late

Whether this is the first time you’re hearing about the ‘not-so-new Code’ or you’ve dealt with it before, one thing is clear: acting early is key. Once you’re in Tribunal territory, the process gets more rigid and usually more expensive.

So if a notice lands on your desk (or even just a polite letter suggesting a change) get legal advice early. You’ll be in a much better position to protect your rights, your land and your income.

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Looking for more guidance in this area? Get in touch with Karen Cameron-Latif to find out more.