Land agency Strutt & Parker has claimed mobile operators are capitalising on the confusion surrounding the terms of the new Electronic Communications Code to demand substantial rent reductions.
It previously appeared that regulatory changes to the Electronic Communications Code as part of the Digital Economy Bill would result in tumbling rents and operators are seeking substantial reductions as a consequence of such misperceptions.
Strutt & Parker's Ian Thornton-Kemsley, an expert in telecoms valuations said: "The operators sought a regime closer to the compulsory purchase system used by other utilities such as the water and electricity industry. However, this is not what the new Telecoms Code now provides. It appears to operate in much the same way as the existing code, which, while it has its faults, is a significantly fairer system for landowners than we were expecting to see going forward.
Mr Thornton-Kemsley went on: "The Government's position has been clouded by a general misapprehension about the code and the potential introduction of a valuation based on that in compulsory purchase. It is now clear that both the existing and proposed code operate in a distinctive way - they work on the basis that code rights are there by agreement, which is not the case for utilities.
"The long history of the current code and its preceding legislation has used what is essentially market value as the basis for consideration and has been interpreted as such in various cases."
Mr Thornton-Kemsley believes it unlikely that the new code will lead to a reduction in rents and points out that: "Although many operators are seeking rents of £3,000 for new sites, research by Deloitte for the mobile operators suggested that the industry pays on average £7,500pa in rent for sites in rural areas and £9,200 in urban areas. Rents continue to rise."
Market round-up
Harrison & Hetherington Ltd had 851 store cattle forward at their annual native breed sale in St Boswells on Thursday when heifers sold to £1315 per head and 290.5p per kg to average £771 and 217.7p (+£85 and 11p on the year), while bullocks peaked at £1510 and 279.3p to level at £963.51 and 242.2p (+£53 and 17p).
C&D Auction Marts Ltd sold 4555 prime hoggs in Longtown on Thursday to a top of £155 per head and 318p per kg to average 184.4p (+15.6p on the week).
the firm also had 2695 cast sheep forward when heavy ewes sold to £159 for Texels and averaged £83.76 (+£1.27), while light ewes peaked at £83 for Cheviots and levelled at £41.90 (-£2.60). Rams sold to £120 for a Texel and averaged £69.83.
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