Important Decisions from 2024 Offering Clearer Guidance on Valuation Determination

In 2024, several significant decisions have influenced industry practices and negotiations with operators. Two key rulings that all site providers landlords should be aware of are Vache Farm and Ewefields Farm. These decisions offer further clarity on valuation determinations and represent a revision of the previously imposed site payments in the Dale Park decision for “unexceptional rural sites,” which was set at £750 per annum. The revised site payment, as established in Vache Farm, is £1,750 per annum, aligning with inflation adjustments.

Following Vache Farm, the Ewefields Farm decision introduced proposed categories for greenfield installations that will guide future site payment levels:

• Unexceptional Rural Site: £1,750 per annum
• Semi-Rural Site: £2,000 per annum
• Urban Site: £1,750 per annum plus £750 per annum for hope value
• Greyfield (adjoining commercial or industrial site): £2,500 per annum

While the Tribunal’s review was focused on greenfield site payments, the inference in the decisions was that increases  as a result of cost of living increases should also be applied in relation to previously imposed rents for rooftop installations with the key reference points being – Maple House and Marks and Spencer decisions.

We view these changes as a positive development for both our clients and operators promoting a fairer outcome. They are expected to foster greater engagement between site providers and mobile operators, facilitating more consensual agreements and supporting the broader roll-out of mobile networks. We recommend reviewing the full decisions, as they also address other important issues such as site sharing, redevelopment, and the lift-and-shift approach.

Cell:cm endorse engagement with the operators to agree consensual agreements which balance the needs and requirements of both Landlord and Operator without the expense of litigation, if this can be avoided. Should you wish to discuss the implications of these decisions with one of our surveyors and how this could affect your telecoms interest, please do not hesitate to contact us.

Dale Park – On Tower UK Ltd -v- JH & FH Green Ltd

Vache Farm – EE & Anor v AP Wireless II (UK) Ltd | [2024] UKUT 216 (LC) | Upper Tribunal (Lands Chamber) | Judgment | Law | CaseMine

Ewefields Farm – On_Tower_v_APW_Decision_-_14_references

Affinity Water – https://www.casemine.com/judgement/uk/6232356fb50db9fc0c926289

Maple House –  https://www.falcon-chambers.com/images/uploads/news/282.pdf

Marks and Spencer – http://www.lands-tribunal-scotland.org.uk/decisions/LTS.ECC.2020.34.a.html