Important Changes Ahead: Government Proposes further Rent Cuts for Phone Mast Landlords Under the 1954 Act

Table of Contents

• What’s Changing?
• Why Does This Matter to Landlords?
• What Can Landlords Do?
• Need help navigating the impact of these changes?

A new consultation launched by the UK Government could have a major impact on landlords with telecoms sites let under the Landlord and Tenant Act 1954.

Under draft regulations published as part of the Product Security and Telecommunications Infrastructure Act 2022 (PSTI Act), the way rents are calculated for telecoms lease renewals is set to change — and not in favour of landlords.

What’s Changing?

Traditionally, if a telecoms operator wanted to renew a lease under the 1954 Act (via a Section 25 or Section 26 notice), the rent was assessed based on Open Market Value (OMV) — often reflecting the premium that could be commanded due to the site’s telecoms use.

Now, the Government has proposed a “no network assumption” when valuing telecoms tenancies under the 1954 Act. This means the valuation must be carried out as though the site is not being used for telecoms and cannot be used for such a purpose. In other words, the valuation should ignore any benefit derived from the land being part of a telecoms network.

This change aligns the 1954 Act valuation process with the Electronic Communications Code, which has been in place since 2017 and is already used to determine rents in situations outside of the 1954 Act framework.

Why Does This Matter to Landlords?

If the regulations are brought into force, landlords could see significant reductions in rent at lease renewal — even where the lease remains under the more landlord-friendly 1954 Act.

This will particularly affect landlords receiving Section 25 or Section 26 notices, where previously they may have had stronger grounds to argue for market-level rents that reflect the true value of the site’s use.

Instead, the proposed valuation method could push rents even lower, limiting landlords’ ability to negotiate fair terms.

What Can Landlords Do?

The consultation is open now (closing on the 2nd of July 2025) and accepting feedback. If you are a Phone Mast landlord, you may wish to:

• Submit a response to the consultation and voice your concerns.

• Review any ongoing or upcoming lease negotiations.

• Seek specialist advice on strategy moving forward, especially if you have a lease renewal pending under the 1954 Act.

You can view the consultation and draft regulations here: Consultations

Need help navigating the impact of these changes?

Our team specialises in representing Phone Mast landlords across the UK. Contact us today to make sure your interests are protected.

Related Services

If you need expert advice on the topics discussed in this article, our specialist surveyors can help:

• Phone Mast Rent Reviews

• Get a Free Rent Estimate

• Phone Mast Lease Renewals

• Phone Mast Sales

• Get a Free Lease Check

Call us on 01691 791543 or contact us online for a free consultation.