Mediation in leasehold enfranchisement

After over 10 years working in the leasehold reform sector, I have never seen mediation used as a mechanism to resolve an enfranchisement dispute. My business partner, Richard, says the same of his over 30 years’ experience. In that same 30-year period, the use of mediation has grown exponentially in other areas, so why not enfranchisement?  

The answer, I think, is two-fold. Firstly, there is no incentive. In other civil disputes heading for the Courts, there are cost consequences should the parties not attempt alternative dispute resolution. For enfranchisement disputes destined for the First-tier Tribunal (Property Chamber), financial penalties for unreasonableness are exercised extremely rarely. I have seen some truly appalling behaviour both from parties and their professional advisors (who frankly should know better), but there is no repercussion. It would be impossible to persuade someone of this nature to engage with a voluntary mediation process. 

The second issue is expense. Many of the disputes heard in the FTT are of relatively low value. The parties are already stumping up fees for valuers and lawyers, and are unlikely to want to pay a further fee for mediation. The cost of referral to the FTT itself is relatively modest (at the time of writing, a £100 application fee and then a £200 hearing fee), and in some cases the issuing of Tribunal directions is enough to encourage the parties to engage in a more productive negotiation. It may seem disproportionate, then, to ask the parties to engage a third party at further expense.  

However, the pressure on the current system is not sustainable. Between January and March 2023, multi-track cases involving claims of over £25,000, and fast-track cases (between £10-25,000) took 18 months to reach trial. Small claims at less than £10,000 took one year from issue of the claim to trial. The President of the Law Society commented that the “unacceptable” delays are a consequence of “long-term underinvestment”, heightened by the pandemic. Current waiting times in the FTT are similarly poor, and may be exacerbated further by an expansion of the Tribunal’s jurisdiction. 

All small claims in the Court system now undergo the step of mandatory mediation by telephone, but the appointment is only an hour long and therefore unsuitable for complex disputes. However, it is possible that this mandatory inclusion of mediation will expand beyond just small claims, and also perhaps into the Tribunal system.  

At the time of writing, the Leasehold and Freehold Reform Act 2024 is on the statute books but largely not in force (including the new valuation methodology). This leaves both sides in a state of uncertainty. Mediation may be the perfect forum for clients to understand their vulnerabilities in respect of this uncertainty. 

Mediation success rates are extraordinary, and if it were introduced at an earlier stage (i.e. before large costs are racked up in the immediate lead-up to a Tribunal hearing) it could also be cost-effective.  

In a world of total leasehold reform uncertainty, perhaps parties need to look to take back control of their own dispute, and perhaps mediation could be the answer. 

Henrietta Hammonds, June 2023 (updated May 2026) 

Henrietta is an RICS-accredited evaluative mediator. If you would like to discuss mediation in leasehold enfranchisement, please contact us.