By Katarina Morgan

Senior Associate Solicitor & CEDR Accredited Mediator

11 March 2026

Article Blog

Co-ownership of property disputes cover a variety of scenarios, ranging from the Bank of Mum and Dad to friends buying together, and from to investment opportunities to commercial properties. However, the majority of parties subject to these disputes tend to involve co-habiting couples.

In the instance a couple’s relationship has broken down, more often than not, one of them will move out of the property. Naturally, circumstances will dictate what they do. (NB: this article does not cover if children are involved.) So, what happens if one co-owner moves out? Where do they stand in the midst of a dispute?

The starting point in a domestic cohabitation context is that where a co-owner of a property excludes the other from that property, the excluded party is to receive compensation, known as occupation rent. The rules on occupation rent are governed by the Trust of Land and Appointment of Trustees Act 1996 (commonly referred to as TOLATA).  

Occupation rent is usually applied in conjunction with an equitable accounting process (please see my earlier article: We bought our house together but paid different proportions – where do I stand?) but is entirely separate to it. Occupation rent does not impact a parties’ beneficial share in the property but is meant to act as a form of compensation when a party has been excluded from the property they occupied as their home.

The facts of the circumstances will heavily weigh on whether occupation rent can be claimed or not. The notion of exclusion will need to be considered in addition to what the excluded party is contributing to if they have moved out. Did the party who moved out did so voluntarily and in what circumstances? Could they have lived in the property with the other party? Were the locks changed? Are they continuing to pay the mortgage and/or bills whilst also paying rent? If they have ceased payments, at what point did they do so? These matters will need to be reviewed in detail.

If occupation rent can be claimed, there are several ways it can be calculated. This could include offsetting occupation rent against mortgage interest payments, applying open market rent value of the property or the cost of renting alternative accommodation. Again, the facts of the dispute will very much determine what will be the best method of calculating occupation rent.

In a domestic cohabitation context, occupation rent can be a head of claim an excluded party can be advance. However, this area of law is complex and will be heavily reliant on the facts of the case, the circumstances in which a party was “excluded” and what financial payments they are making, whether towards the property or not.

This is part 4 of a series of 4 mini-articles covering TOLATA (Trusts of Land and Appointment of Trustees Act 1996)

If you wish to discuss any of the issues highlighted in this article, please contact a member of our team here.

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Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.