Valuation and the Code: What You Need to Know

By Caroline Hickey Charlotte Cocker

5 Nov 2026 5 min read

Telecoms mast rents aren’t what they used to be. Leases entered into before the introduction of the Electronic Communications Code (the Code) in December 2017 often provided for five-figure sums to be payable as annual rent. Site payments since then are often much lower.

Agreements made since December 2017 now provide for site payments which typically range from about £1,750 to £6,000 a year, depending on where the site is located and other factors.

The Code replaced market‑rent valuation in telecoms agreements with a statutory assessment of consideration alongside separate compensation.

Valuation Under the Code

The Code distinguishes between the consideration (the price paid to reflect value) for Code rights and compensation for loss caused by their exercise:

Consideration – what is the right to use the land worth?
Compensation – what loss or damage have you as site provider suffered (or will you suffer) because of the Code rights?

If you and the operator cannot agree the amount of compensation or consideration (usually called the site payment altogether), the Tribunal will determine what is payable.

Whilst some operators may be willing to pay slightly more on a consensual basis to avoid the delay and cost associated with Tribunal proceedings, site payments offered by operators generally reflect what they consider the Tribunal would award for the agreement.

It is helpful for you to understand how the Tribunal approaches site payment valuation, to know whether the deal offered by the operator is a good one.

Consideration

When assessing consideration, the Tribunal must assume that the agreement does not relate to provision of an electronic communications network (the no-network assumption) and that there is more than one site which the operator could use. The effect of this is that the true value of the site to the operator will not be reflected in the consideration payable, which will instead be based on the next most valuable use of the site other than telecoms. This reduces the operator’s costs of network rollout and can significantly impact site providers (landowners or occupiers), who would likely have received much higher rents under agreements entered into before December 2017.

Whilst earlier Tribunal valuation cases focused on applying detailed processes to calculate consideration, the Tribunal now prefers a more broad-brush approach. It will generally determine consideration in line with its previous decisions for that type of site, rather than repeatedly analysing similar valuation arguments on every site. The key benchmark figures to which the Tribunal will have regard are as follows:

Type of property	Annual consideration (2022 figures – to be adjusted in line with inflation)
Unexceptional Greenfield site	£1,750
City, department store/offices	£3,850
City, residential rooftop	£5,000

The Tribunal is unlikely to depart from these figures unless you can show evidence that the consideration should be increased to reflect the following:

Alternative Use: What could the land be used for if it was not a telecoms site? What rent might be achieved for that use? Special circumstances are likely to be required to persuade the Tribunal that an alternative use is sufficiently viable and valuable to disregard the accepted benchmark figures.
Benefit: Is the operator benefitting from any special features of the site, such as a manned security gate?

Compensation

Compensation can cover:

physical damage to land or buildings;
reduction in value of the site and the rest of your land; and
professional fees and costs.

Some elements of compensation will be reflected in the site payment (such as ongoing expenses) and some will be paid in a lump sum when the Code agreement is entered into (such as agent and solicitor fees for negotiating the agreement). Where unforeseen loss occurs during the course of the agreement which was not reflected in the site payment, it may be possible to apply to the Tribunal to order additional compensation be paid by the operator.

Strategies for You as a Site Provider

To ensure the site payment agreed (or imposed) reflects the actual burden of the Code agreement, you should collate evidence of burdens such as site‑specific risks, management/supervision time, third‑party fees, safety measures and approvals tied to telecoms activity. Costs should be proportionate to the site and will need to be properly evidenced.

Until early in 2026, there was a different approach to assessing site payments under telecoms leases which were renewed under the Landlord and Tenant Act 1954, rather than the Code. However, harmonising legislation brought into force in April 2026 has largely removed this distinction.

If You’re Approached

We can put you in touch with a number of expert telecoms surveyors with whom we work closely to secure the right terms for you. We can then assist with drafting and negotiating Code agreements, recovering costs and Tribunal proceedings. Please reach out to Caroline Hickey, Rob Bailey or Perry Swanson for more information.