Farmers warned not to undersell telecom mast sites

Farmers and landowners are being warned not to undersell telecom mast sites as operators and infrastructure investors increasingly target rural properties with discounted buyout offers.

Property experts say many landlords are being approached by telecom firms seeking to purchase mast sites outright or secure long-term control of strategically important land.

The approaches have accelerated following changes introduced under the 2017 Electronic Communications Code (ECC), which reduced rental returns for many mast site owners while strengthening operators’ rights to maintain and expand infrastructure.

For many farms and rural estates, telecom mast income has become an important source of diversification revenue.

However, property specialists warn some landowners may now be accepting significantly less than their sites are worth.

According to property consultancy Galbraith, initial offers presented directly to landlords are often “substantially lower” than what could be achieved through wider market competition.

The firm said some operators were using the prospect of falling rents under the revised code to pressure site owners into selling quickly.

The reforms shifted negotiating power heavily towards telecom operators, increasing concerns among landlords over future rental income and long-term control of land.

At the same time, mobile network companies are increasingly seeking long-term security over mast locations as demand for digital infrastructure and network expansion continues to grow.

Securing sites for extended periods also reduces the risk of landowners later removing infrastructure to pursue redevelopment plans or alternative land uses.

Oliver Sinclair, a surveyor and telecoms specialist at Galbraith, said it was understandable that some landowners were considering cashing in on mast sites amid declining rents.

“Seeking to capitalise on mast values rather than facing a fall in rental income is perfectly understandable,” he said.

However, Mr Sinclair warned that selling was not always the best — or only — option available.

He said some firms were presenting discounted offers as the simplest solution for landlords concerned about future rental reductions.

“Often, these offers are substantially lower than what could be achieved in the market,” he said.

Mr Sinclair urged landlords to avoid making rushed decisions based solely on legislative changes or fears over falling income.

Instead, he said site owners should carefully weigh wider property considerations, including future development potential, tax implications and the balance between long-term income and immediate capital returns.

“Initial offers are often not the best available,” he said.

“It is vital that landlords make sure they are advised on the implications and value of any transaction to protect their longer-term property interests.”

The 2017 ECC reforms were introduced to support faster and cheaper expansion of digital infrastructure across the UK, but the changes have proved controversial among many rural landowners following substantial reductions in mast rental payments.

Galbraith warned that landowners accepting early offers without specialist professional advice could risk sacrificing significant long-term value from strategically important telecom sites.

“Above all, landowners should obtain specialist professional advice,” Mr Sinclair said.