PSTIA 2022 Section 68: Impact on Phone Mast Landlords

Section 68 of the Product Security and Telecommunications Infrastructure Act 2022 (PSTIA 2022) represents a significant shift in how rent is determined during the period between when an operator applies to renew a lease and when the tribunal makes its final decision.

For phone mast landlords, this isn't a minor procedural change — it can mean the difference between receiving fair rent during a lengthy tribunal process and watching your income evaporate while proceedings drag on for 12-18 months.

This guide explains Section 68 in plain English and what it means for your portfolio.

Understanding Section 68: The Background

How Tribunal Proceedings Work

Before explaining Section 68, it's helpful to understand how lease renewal disputes typically work:

1. Operator serves Section 26 Notice — initiating renewal
2. Negotiation period — landlord and operator attempt to agree terms
3. Tribunal application — if no agreement, either party applies to the First-tier Tribunal (Property Chamber)
4. Proceedings — tribunal considers evidence from both sides (typically 6-18 months)
5. Determination — tribunal sets the new rent and terms

The "Interim Rent" Problem

Here's the issue: tribunal proceedings take time. A lot of time. During those 6-18 months, what rent should the landlord receive?

Before Section 68:

• If the operator applied to the tribunal, they could argue no rent was payable at all during proceedings
• Or they could argue for a reduced "interim" rent while the case was pending
• Landlords were often left receiving far less than market rate — or nothing — while waiting for resolution

This was financially devastating for landlords.

What Section 68 Changes

Section 68 addresses this imbalance by allowing the tribunal to determine that:

Code rent should be payable from the date of the operator's application, not from the date of the tribunal's final determination.

In practical terms: if the operator applies to the tribunal in January 2026 and the tribunal finally rules in December 2027, the landlord is entitled to rent for the entire period — not just from December 2027 onward.

But There's a Catch

While Section 68 benefits landlords by ensuring rent is paid during proceedings, there's a significant caveat:

The "interim rent" is calculated using the NEW PSTI rules — meaning the "no-network" assumption applies.

So while you'll receive rent during proceedings, it will be based on the lower "land-only" valuation, not the higher market value that applied before 7 April 2026.

How This Affects Your Income

Scenario 1: Fast Resolution (6 months)

• Operator applies to tribunal: January 2026
• Tribunal determines rent: July 2026
• Total period: 6 months
• Rent during proceedings: Based on old rules (if before 7 April) or new rules (if after)
• Final rent determined: Applied from July 2026

Impact: Moderate. You receive rent throughout, though possibly at reduced rates.

Scenario 2: Extended Proceedings (18 months)

• Operator applies to tribunal: January 2026
• Tribunal determines rent: July 2027
• Total period: 18 months
• Rent during proceedings: Based on new "no-network" rules (from April 2026)
• Final rent determined: Applied from July 2027

Impact: Significant. You could receive 18 months of reduced rent before the final determination.

The Bottom Line

Section 68 ensures you receive SOME rent during proceedings — which wasn't guaranteed before. However, that rent will be CALCULATED USING THE NEW, LOWER PSTI FORMULA.

Strategic Implications

What This Means for Landlords

1. Rent during proceedings is now guaranteed — This is better than the previous situation where operators could argue for zero interim rent

2. But the rate will be lower — The "no-network" assumption means interim rent will typically be 40-60% less than old-system rent

3. Faster resolution becomes more important — Every month of proceedings is a month at reduced income

4. Settlement incentives change — Both parties now have reasons to settle quickly: operators avoid extended "no-network" payments; landlords avoid prolonged reduced income

What Operators Are Doing

Now that Section 68 is in effect:

1. Accelerating applications — Operators are applying to tribunals earlier, knowing they'll benefit from lower interim rent calculations

2. Aggressive opening positions — Initial offers are often very low, forcing landlords to either accept or face tribunal

3. Settlement pressure — Operators may offer settlements just above interim-rent levels to avoid tribunal costs

4. Strategic timing — Operators may time applications to maximise the period under new rules

Protecting Your Interests

Immediate Actions

1. Review pending cases — If you're in tribunal proceedings, understand how Section 68 affects your interim rent calculation

2. Prepare for longer proceedings — Budget for potentially extended timelines (12-18 months is common)

3. Gather evidence early — Compile all valuation evidence, lease documents, and operator communications before proceedings begin

4. Consider settlement strategically — Sometimes accepting a reasonable settlement is better than 18 months of reduced income

Long-Term Strategy

1. Act before renewal notices — Serve your own notices before operators do to control timing

2. Professional representation — Given the complexity, specialist help is essential

3. Portfolio planning — Understand which sites are most vulnerable to Section 68 impacts

Frequently Asked Questions

Q: Can I challenge the interim rent amount?

A: Yes. The tribunal determines the interim rent based on the evidence presented. You can challenge the calculation methodology.

Q: What if the operator withdraws their application?

A: If the operator withdraws, the proceedings end and standard lease terms typically resume. However, they've gained time at potentially reduced rent.

Q: Does Section 68 apply to all tribunal applications?

A: Section 68 applies to applications made after it came into force. Applications made before may still follow old rules.

Q: How long do tribunal proceedings typically take?

A: Currently 6-18 months, depending on complexity and tribunal workload. Some cases have taken longer.

Q: Can I speed up proceedings?

A: Both parties can request case management directions from the tribunal. Delays often come from procedural issues, evidence gathering, and tribunal scheduling.

Q: What happens if I win the case?

A: If the tribunal rules in your favour (higher rent than interim), the difference is backdated to the application date. However, collection can be challenging.

Q: Should I represent myself at tribunal?

A: We strongly recommend professional representation. Tribunal proceedings involve complex legal and valuation arguments. The financial stakes are significant.

Case Study: Section 68 in Action

Situation: A landlord faced tribunal proceedings with CTIL over a renewal. The operator applied in February 2025, with proceedings expected to last 14 months.

Before Section 68: The operator argued no rent should be payable during proceedings.

With Section 68: The tribunal ruled "no-network" rent (£4,200/year) was payable from the application date.

Financial impact:

• Old system would have been £9,500/year during proceedings
• Section 68 interim rent: £4,200/year
• Difference: £5,300/year during 14-month proceedings
• Final determination: £8,200/year (backdated)

Lesson: Section 68 provides income during proceedings, but at significantly reduced rates.

The Bigger Picture

Section 68 is part of a broader shift in favour of operators. Combined with the "no-network" assumption (Sections 61-64), the PSTI Act represents a fundamental restructuring of landlord-operator relationships.

However, Section 68 does provide some protection — ensuring landlords receive interim rent (albeit at reduced rates) rather than nothing during extended proceedings.

The key takeaway: professional representation is more important than ever. Understanding these changes and responding strategically can mean the difference between preserving your income and suffering significant losses.

How We Can Help

Our team has extensive experience with tribunal proceedings and can help you:

• Understand how Section 68 affects your specific situation
• Prepare strong evidence for tribunal
• Negotiate settlements that avoid extended proceedings
• Develop long-term strategy for your portfolio

Related Services

• Phone Mast Lease Renewals — Comprehensive renewal negotiation
• Rent Reviews — Ensure you're receiving fair rent
• Free Lease Check — Initial assessment of your position
• Contact Us — Discuss your specific situation

Legal References

• PSTI Act 2022 - Section 68 (legislation.gov.uk)
• Electronic Communications Code 2017
• First-tier Tribunal Property Chamber Guide

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Facing tribunal proceedings or a renewal notice? Contact our specialist team on 01691 791543 for a free, no-obligation consultation.