Think cohabitation agreements are just for couples? Flatshares may be leaving tenants vulnerable

1 June 2026

Cohabitation agreements have often been overlooked by many couples looking to embark on a new life together without going through the pomp and circumstance of marriage.

As marriage rates have fallen, it seemed all but certain that cohabitation agreements were set to have their day in the sun.

Now, soaring rents and rising house prices are seeing platonic reasons for cohabitation, further increasing the value of cohabitation agreements.

Whether moving in for love or money, it is worth understanding how to protect your assets if things fall apart.

Who benefits from a cohabitation agreement?

At their core, cohabitation agreements are legally binding contracts that provide provisions for when you are living together and in the event of parting ways.

Cohabitation agreements were once pitched as the sleek sports car compared to the camper van of marriage.

Unfortunately, this has left the legal practice bound to relationships in a way that might cause the true value to be missed.

There is no requirement for people to be in any form of relationship to enter into a cohabitation agreement.

As the name indicates, the only requirement is that the people named in the agreement cohabit the same residence.

While many couples moving in together would certainly benefit from this arrangement, they are not the only adults who split living costs in this way.

Flatshares are increasingly common, even among older members of the population.

Research indicates that 38 per cent of flatmates live in multigenerational households, suggesting a less rigid approach to cohabiting than may have been adopted in the past.

When people of different generations cohabit, there may be a difference in financial contributions to the property that can be managed through a cohabitation agreement.

What should be included in a cohabitation agreement?

While living in a rented property will typically see tenants sign a contract, a cohabitation agreement can serve to supplement this by allocating financial responsibility where it is best placed.

If one resident is a higher earner and feeling altruistic, they may take on more of the rent or furnish shared spaces out of their own pocket.

A cohabitation agreement codifies agreed-upon responsibilities to avoid disputes later on and can also be used to define ownership of assets even when they are for shared use.

Asset ownership becomes more important if the people living together part ways, as it can be challenging to untangle all assets from this shared existence.

Recent news coverage has indicated that the breakdown of cohabitation can cost as much as £5,000 if items are left in the property or taken by someone who did not originally pay for them.

If the flatshare comes together to get a pet, the ownership of this beloved member of the home can be allocated based on who would be better positioned to manage the responsibility.

Should the property be owned by one or more of the people living in it, then a cohabitation agreement can determine how the property should be split if one or more people decide it is time to move on.

Cohabitation agreements remain overlooked and misunderstood, resulting in more people carrying legal risk than they need to.

Our expert team can support you in making the most of your living arrangements so that you do not find yourself facing down additional heartbreak should your living situation fall apart.

Your assets and your mental well-being do not need to be lost along with your home, as a cohabitation agreement can strengthen your legal standing.

When your life circumstances change, we can help you update your cohabitation agreement accordingly.

Get in touch to find out if a cohabitation agreement is right for your living arrangements.