Telecoms Industry update – Renewals in 2026  

Telecoms surveyors advising operators, landowners and site providers should prepare for a shift in process and law when renewing telecoms agreements. The Product Security and Telecommunications Infrastructure Act 2022 (“PSTI”) is streamlining the process to renew telecoms leases with the protection of the Landlord and Tenant act 1954 (“the 1954 Act”) and those renewals of code agreements pursuant to the Electronic Communications Code.

The most significant change is a move away from an open-market renewal rent for 1954 Act telecoms leases. Instead, renewals will adopt the Code’s “no-network” assumption – the same valuations basis already used for new and renewed Code agreements. Below we highlight key changes and what they are likely to mean in practice for landowners and their advisers.

Rent and forum

From 30 July 2026, renewals of all telecoms leases will be heard in the First-tier Tribunal rather than the County Court; regardless as to whether it is a 1954 Act telecoms lease, or a Code agreement.

The biggest impact though will be on rent. Under the PSTI, both renewal rent, and interim rent, will be assessed on the “no network” assumption for any 1954 Act renewal. In simple terms this assumes the rights being granted are unrelated to the provision or use of an electronic communications network.

This valuation approach already applies to Code agreement renewals and was introduced to support faster and lower-cost for the deployment of telecoms infrastructure.

Historically, renewals under the 1954 Act have generally produced higher rents because they were assessed on an open market basis under section 34 of the 1954 Act. By aligning those renewals with the Code methodology, many landowners are likely to see lower renewal rents going forward.

Compensation

The PSTI also narrows the gap between renewals pursuant to the1954 Act and the Telecoms Code in relation to compensation.

Landowners will now be able to ask the Tribunal (or the Court where proceedings are already underway) to order compensation for loss or damage arising from the exercise of Code rights under the new tenancy. Compensation may include:

• reasonable legal and valuation costs;
• any diminution in the value of the land; and
• reinstatement costs.

Diminution in value will be assessed using compulsory purchase principles under section 5 of the Land Compensation Act 1961, including the open-market willing-seller test and the “no-scheme” principle.

Compensation should therefore form part of the renewal strategy from the outset, rather than being treated as an afterthought. Where appropriate, claims can be pursued alongside the renewal process or shortly afterwards, depending on the circumstances.

Transitional dates

The PSTI will apply to all renewals initiated after 7 April 2026. Where a 1954 Act notice specifies a date before7 April 2026, the existing rules on renewal provisions under the 1954 Act continue to apply. .

Where the notice specifies a date after 7 April 2026, the new regime applies and rent will be assessed under the Code valuation methodology. Importantly, agreeing an extension to the date in the original notice will not change which regime applies. Any extensions that have agreed between the parties to extend the original date included in the 1954 notice will not alter this mechanism.

Surveyors should also ensure the correct notice forms are being used. The PSTI introduced changes to the prescribed information for Code notices referring to alternative dispute resolution.. The recent decision in APW v EE and H3G (LC-2026-000202) confirmed that a Paragraph 20 notice remained valid despite the ADR wording being omitted. However, relying on the Tribunal taking the same approach would be unwise and using the latest prescribed notices remains the safest course.

Interim rent and surveyor action points

Interim rent for periods ending on 6 April 2026 will continue to be assessed under the existing 1954 Act framework. For periods after 7 April 2026 the interim rent will be assessed using the new ‘no network’ methodology. Generally, interim rent usually mirrors the renewal rent under the renewed agreement.

In practice, this may require interim rent to be calculated in two parts – one covering the period up to 6 April 2026 and another covering the period after that date.

Way Forward

Now is the time for landowners and their surveyors to review telecoms portfolios. Understanding when agreements expire, when renewals are likely to begin and how the new valuation regime could affect future rental income will help shape the right strategy.

For live renewals, it’s worth checking the date in the 1954 Act notices. Where refunds may become payable to operators, early agreement or prompt completion could help minimise any unnecessary rental adjustment.

This content is provided for general informational purposes only and does not constitute legal advice. It is not intended to address the circumstances of any individual or entity, nor should it be relied upon as a substitute for specific advice from a qualified solicitor. The information reflects the legal position as at the date specified and may be subject to change. If you require advice on a specific matter, please contact us directly.