Price Rises and Cohabitation

As we step into April, the beautiful spring flowers are blooming, but so are your household bills. With costs for essentials like energy, council tax, and broadband on the rise, it’s crucial to pay attention—especially if you’re living with a partner and aren’t married.

Many cohabiting couples share these expenses informally. You might think, “We’ll split things fairly!” But breakups can get messy. If one person moves out, the other could be stuck paying for a home they no longer share, with no way to reclaim what they’ve contributed.

In England and Wales, unmarried couples don’t have automatic legal rights regarding each other’s property or expenses. This is risky, especially now that prices are climbing. Without a Cohabitation Agreement, you could be leaving yourself unprotected.

Rising Costs This April Include:

Water Bills: Up £10/month on average; some regions face increases of up to 47%.

Energy Bills: Price caps rising by £111/year, now averaging £1,849.

Council Tax: Up to 5% in most of England; some Welsh areas rising 15%.

Broadband & Phone: Costs creeping up by 6.4%–7.5%.

TV Licence: Increased to £174.50/year. 

Car Tax: Rising to £195/year.

Income Tax Thresholds: Frozen, pulling more earners into higher rates.

Why This Matters for Unmarried Couples

Many couples are pooling finances to handle rising costs, but what happens if you breakup? If one partner leaves, the other can be stuck with debts and expenses, while the non-paying partner walks away free. There’s no legal guarantee of fairness—no refunds or claims to shared equity.

Meet Billy and Sally

Billy, from Manchester and Sally, from Wilmslow bought a home together in Altrincham in 2022. Like many unmarried couples, they didn’t bother with formal agreements.

Billy paid the mortgage, which stayed fixed at £900 a month.

Sally covered the energy, council tax, broadband, phone and TV licence.

In 2022, that seemed fair.

But by 2025, everything Sally was paying had gone up:

• Energy bills rose to £1,849/year, up by £111
• Council tax went up by 5%
• Broadband and phone increased by 7.5%
• TV licence increased to £174.50/year
• Water bills jumped by £10/month, with some suppliers hiking by up to 47%

Sally’s contributions crept up month by month, while Billy’s mortgage stayed the same.

By the time the relationship broke down, Sally had paid thousands more than Billy, simply because the bills she was responsible for had risen dramatically.

When they split and began the home sale process, Billy stayed in the property. Sally moved out.

Sally had no legal right to claim anything back. Billy, meanwhile, was now living in the house she helped maintain without owing her a penny.

The Solution: A Cohabitation Agreement

A Cohabitation Agreement is a legally binding document that sets out:

1. Who pays what (bills, mortgage, tax)
2. Who owns what (deposits, assets, furniture, pets)
3. What happens if you split (division of equity, repayment of costs, ownership of chattels)
4. A breakdown of how utility payments, mortgage payments, and taxes should be paid during the sale process.
5. Arrangements for debts (current and future).

Why Act Now

2025’s price rises increase the financial exposure of every cohabiting household.

At Gifford Cairns, we work with couples to create clear, enforceable agreements that reflect their contributions and protect their futures. In a time of rising costs, uncertainty, and legal vulnerability, clarity is not optional—it’s essential.