From 7 April 2026, rent valuation procedures for telecoms leases will be harmonised. This means that leases under the Landlord & Tenant Act 1954 will be brought into line with the ‘no network’ framework introduced by the Digital Economy Act 2017.
These changes will affect anyone party to a telecoms lease under the Landlord & Tenant Act 1954.
Agreements for “Electronic Communications Apparatus”
On 15 December 2025 the UK Government laid draft regulations before Parliament to bring into effect provision under sections 61-64 of the Product Security and Telecommunications Infrastructure Act 2022. These regulations will come into force on 7 April 2026.
One of the effects of these regulations will be to harmonise the rent valuation procedures between those under the Landlord & Tenant Act 1954, and the ‘no network’ valuation framework introduced by the Digital Economy Act 2017 to vary the Communications Act 2003.
Currently, subsisting agreements protected by Part II of the Landlord & Tenant Act 1954 are excluded from the ‘no network’ valuation provisions on renewal, producing a potentially higher open market rental valuation.
From 7 April 2026 that higher open market valuation will cease, and the ‘no network’ framework will apply to telecoms lease renewals under the 1954 Act.
There are savings for what have been termed “in flight” renewals, where the Landlord or the Tenant has already triggered the renewal procedure under Part II of the Landlord & Tenant Act by serving a Section 25 Notice (Landlord) or Section 26 Request (Tenant).
Before 7 April, after 7 April, and hybrid arrangements
Where the proposed start date under either Notice falls prior to 7 April 2026 the ‘no network’ valuation will not apply.
Where the proposed start date falls on or after 7 April 2026 the ‘no network ‘valuation will apply.
Where negotiations are ongoing, there may be a hybrid valuation, where the interim rent period will be split between pre 7 April 2026 under the old rules, and post 7 April 2026 under the new, lower valuation.
No change to the notice procedure for telecoms lease renewals
It should also be noted that the new regulations do not make any changes to the notice procedure to renew an agreement protected by Part II of the Landlord & Tenant Act 1954. These will remain as per the Section 25 notice or Section 26 request above and not, for instance, a notice under Paragraph 20 of the 2003 Act.
Lodders’ advice
Other provisions under Part II of the Landlord & Tenant Act 1954 are preserved regarding the terms of the renewal agreement (looking at the previous lease while allowing for reasonable modernisation). With this in mind, our advice would be not to accept a surrender of the subsisting agreement, as opposed to a renewal, without detailed further consideration.
Landlords and site providers with older leases should meanwhile consider concluding renewals before 7 April 2026 to avoid the new ‘no network’ valuation.
Lodders’ team of agricultural and rural solicitors are all members of the Agricultural Law Association and we work closely with the Country Land and Business Association. This helps us to keep our clients informed on new legislation and policy, as the sector continues to experience rapid change.
If you have any concerns around how the new lease terms may affect your telecoms agreements, please do get in touch with our friendly team, who would be happy to help.
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