Landowners Warn of Rent Cuts Impacting 5G Deployment in the UK

Landowners throughout the United Kingdom are urging the government to halt recent reforms that have resulted in rent reductions for individuals hosting mobile phone masts by as much as 90%. They warn that these cuts could jeopardize the rollout of 5G technology and hinder economic growth in the country.

The appeal was made in a letter addressed to Lord Livermore, the financial secretary to the Treasury, from a coalition of industry representatives, including the British Property Federation and the National Farmers Union. They expressed concerns that modifications made in 2017 have severely damaged the relationship between mobile tower operators and numerous small landowners, comprising farmers, sports organizations, and religious institutions.

According to the letter, landowners are becoming increasingly reluctant to host the necessary infrastructure, and without available land, the deployment of 5G technology cannot proceed.

The 2017 amendments to the electronic communications code restructured how rents for land leased to telecom companies are calculated. This new model assesses land value based on its importance to the landowner, rather than the value perceived by telecommunications providers intending to install their infrastructure.

This reform has resulted in significant rent reductions and has transitioned the arrangement from voluntary negotiations to what is described as unnecessary compulsion, the letter cautioned.

The government had previously stated that these reforms were essential for advancing the UK’s ambitions for enhanced broadband and mobile connectivity, particularly in addressing areas with poor coverage. However, a 2023 study by Opensignal revealed that UK mobile users are experiencing the lowest average 5G download speeds among G7 nations.

Representatives for landowners claim that although the reforms were initially well-intentioned, they are now discouraging land and property owners from facilitating mobile infrastructure, consequently impeding the growth of deployment and the UK’s economic prospects.

Currently, the government is seeking public input through a consultation regarding the possibility of extending the revised valuation method to existing rental agreements established prior to 2017, as these contracts come up for renewal. This proposal could impact around 15,000 current telecom sites, according to industry advocates.

Furthermore, the frequency of legal disputes over rent reductions has increased tremendously, with over 1,000 cases brought before the Upper Tribunal since the 2017 changes, compared to just 33 cases in the prior three decades.

Landowners are calling for a comprehensive review of the 2017 reforms, advocating for an evaluation that encompasses not only land valuation but also litigation rates, market dynamics, investment patterns, and real-world rollout results.

A representative from the Department for Science, Innovation and Technology commented, “Our priority remains to ensure the delivery of high-quality 5G networks throughout the UK, an effort essential for stimulating growth and enhancing public services for the populace.”

They added, “It is vital that the measures implemented to develop required infrastructure are beneficial for landowners, operators, and the communities, which is why these issues are currently under technical consultation, to which we encourage public feedback.”