Landowners warned over telecoms tactic to drive down mast rents

Farmers and landowners risk being pushed into below-market telecoms deals as radio mast operators adopt new tactics to secure lease renewals, industry advisers have warned.

Property experts say some operators are increasingly seeking to reduce rental payments by encouraging landowners to agree terms without professional representation — potentially weakening their long-term position.

Under the 2017 Electronic Communications Code, operators are able to renegotiate contracts, often aiming to lower rents and introduce terms more favourable to their businesses.

Traditionally, operators have offered to cover legal and agent fees as part of negotiations, presenting contributions towards “transactional costs” within a wider package designed to reach a “consensual agreement” and avoid tribunal proceedings.

However, advisers say a more concerning approach is now emerging.

In some cases, landowners are being offered a one-off payment — equivalent to the proposed professional fees — on the condition they proceed without appointing an agent or adviser.

This effectively trades short-term cash for independent advice, raising concerns that landowners may unknowingly accept weaker terms.

Mike Reid, head of energy at property adviser Galbraith, said the tactic could leave owners exposed.

“This tactic looks to deprive the owner of proper professional advice,” he said, warning it encourages individuals to negotiate without representation.

He stressed that operators are already required to meet reasonable professional costs.

“Under the Electronic Communications Code, the operator is required to cover the reasonable and proper professional costs of the site provider, with no fixed cap set in legislation,” Mr Reid said.

“In practice, however, operators tend to agree to pay fees in legal undertakings up to agreed caps with provision for these to be extended by agreement.”

Without expert guidance, landowners risk agreeing to reduced rents or overlooking key protections, he added.

“Without professional advice, there is a real risk that key provisions are missed or diluted, particularly around matters such as the proper rental value of the site, redevelopment rights or other protections, which can have long-term detrimental implications for the site.”

The warning comes as demand for telecoms infrastructure continues to grow, increasing pressure on landowners to reach agreements quickly.

Mr Reid urged caution, warning that upfront payments should not outweigh long-term considerations.

“To protect your position and maximise value, always seek proper professional advice,” he said.

“The overall site value and protecting your rights over the longer term are far more critical than receiving a relatively small initial one-off payment.”

Industry advisers say the issue could have lasting implications for landowners across the UK, particularly as lease renewals become more common under the current legal framework.