If you or someone you love is thinking about moving into a care home, one of the biggest worries is often: “Will I have to sell my home to pay for care?” This question is very common because your home is usually your most valuable asset, and the idea of losing it can be frightening.
The good news is that the rules around care fees and selling your home are designed to protect you. You cannot be forced to sell your home immediately in most cases. But it is important to understand how the system works, so you can make informed decisions and plan ahead. In this article, I will explain everything you need to know in simple, clear language.
How Is Care Usually Paid For?
When you need care—whether at home or in a care home—the local council (or sometimes the NHS) will carry out a financial assessment. This assessment looks at your money and assets to decide how much you should pay towards your care.
The assessment counts:
- Your income like pensions, benefits, and earnings
- Your capital, which includes savings, investments, and property (your home in some cases)
Depending on what you have, you might pay some or all of your care fees yourself, or the council may help cover the costs.
The £23,250 Threshold — What Does It Mean?
In England, there is a clear rule about how much capital you can have before you have to pay care fees yourself.
- If your capital (including your savings and property value when it is counted) is more than £23,250, you will likely have to pay the full cost of your care fees.
- If your capital is less than £23,250, you will pay what you can afford, and the council may pay the rest.
- There is also a lower limit of £14,250, below which the council usually covers the full cost, except you pay from your income.
This threshold includes the value of your home only in certain situations, which we will explain.
When Is Your Home Included in the Financial Assessment?
Your home is usually your biggest asset, so it matters a lot whether the council counts it or not.
- If you are receiving care at home or short-term care: Your home is not counted at all. This means if you live in your own home and get help with things like washing, dressing, or cooking, your house’s value will not affect how much you pay.
- If you are moving into a care home permanently: Your home will usually be counted as part of your capital, which means its value could affect your care fees.
What Does “Permanent” Mean?
“Permanent” means you have moved into a care home and you intend to live there for the foreseeable future. This is different from a short stay or respite care, which is temporary.
For example, if you go into a care home after leaving hospital to recover, that is a short stay, and your home will not be counted in your financial assessment during this time.
Are There Any Exceptions Where Your Home Won’t Be Counted?
Yes. The law recognises that you shouldn’t be forced to sell your home if certain people still live there and rely on it as their home.
Your home will not be counted if any of the following people continue to live there after you move into a care home:
- Your husband, wife, civil partner, or partner
- A relative who is 60 years old or over
- A relative who is disabled
- A child under 18 years old who is dependent on you
Also, if someone else is your carer and lives there, the council can choose to ignore the home’s value to help you, although this is not automatic.
The 12-Week Property Disregard — A Grace Period
Even if none of the exceptions apply, when you move into a care home permanently, your home’s value is ignored for the first 12 weeks. This is called the 12-week property disregard.
During these 12 weeks:
- The council will not count your home when working out how much you pay.
- The council may pay or contribute towards your care fees.
This gives you and your family time to decide what to do next without rushing to sell your home. However, if you sell your home within the 12 weeks, the disregard ends immediately.
It’s important to tell the council before you move in so you can benefit fully from this period.
How Will the Council Calculate the Value of Your Home?
If your home is included in the financial assessment, the council will calculate its current market value. From this amount, they will subtract:
- Any outstanding mortgage or loans secured against the property
- A deduction of 10% to cover the costs of selling the home (estate agent fees, legal costs, etc.)
The remaining amount will be added to your other capital for the financial assessment.
What If You Own Your Home Jointly?
If you own your home with someone else (for example, a spouse or a child), the council must look at the actual share you own.
They cannot simply assume that you own 50% unless that is correct. You may need to provide evidence showing how much of the property you actually own.
Can the Council Force You to Sell Your Home?
No, the council cannot force you to sell your home.
However, if your home is included in your financial assessment and its value pushes you over the capital limit, the council may ask you to use the value of your home to help pay care fees.
They might place a legal charge on your property, which means the money you owe for care fees will be repaid when your home is eventually sold— either during your lifetime or after you pass away.
You have the right to stay in your home as long as you want, but the debt will be recovered later.
Deferred Payment Agreements — An Option to Delay Selling
If your home is included in the financial assessment but you do not want to sell it immediately, you can ask for a Deferred Payment Agreement (DPA).
A DPA is a deal with the council where:
- The council pays your care home fees for you for now.
- You repay the council later when your home is sold or from your estate after your death.
This means you don’t have to sell your home straight away but can wait until the right time.
All councils in England must offer DPAs, but they can refuse in some cases — for example, if your home’s value isn’t enough to cover the fees or if you don’t meet other eligibility conditions.
The council may charge a small administration fee and interest on the deferred amount, so you should get advice before agreeing.
If you lack mental capacity to agree, your Lasting Power of Attorney (LPA) or a court-appointed deputy can do this for you, but only if it is in your best interests.
Renting Out Your Home — Another Option
You might choose to rent out your home to help pay for care fees, especially if you have a DPA.
Rental income can be used to contribute towards fees, reducing the amount you owe the council.
But remember:
- Rental income is taxable and may affect your benefits.
- You need to keep the property in good condition and find tenants.
- It’s important to talk to a financial adviser to understand the pros and cons.
What About Gifting or Transferring Your Home?
Some people think about giving their home away to family or friends to avoid it being counted.
But be very careful with this.
If the council believes you have deliberately given away your home to avoid care fees, they can apply “deprivation of assets” rules and treat the property as if it still belongs to you.
This means you could still have to pay fees based on your home’s value.
Always get legal advice before transferring ownership.
Planning Ahead — How to Protect Your Home and Your Future
To avoid unnecessary worry and to protect your home, it helps to plan early.
Here are some tips:
- Talk about your wishes with family and trusted advisers.
- Get professional advice from financial advisers who specialise in care funding.
- Consider making a Lasting Power of Attorney (LPA) for property and finances, so someone you trust can help if you become unable to manage your affairs.
- Keep your will updated to reflect your wishes about your property and estate.
- Speak to your local council’s social services team for advice and information about local care options.
- Find out if you qualify for any benefits or support that can help with costs.
Frequently Asked Questions (FAQs)
Q: Will my children lose the house if I have to pay care fees?
A: Not immediately. If the council places a legal charge on your property, your children or heirs will only receive what is left after care fees, debts, and costs are paid once the house is sold.
Q: Can I stay in my home if I move into a care home?
A: You can keep your home, but if its value is counted in your financial assessment, it may affect your fees or be repaid later.
Q: How soon after moving into a care home do I have to sell?
A: You have 12 weeks where your home’s value is disregarded to give you time to plan. You can also use Deferred Payment Agreements to delay selling further.
Q: What if I own a share in the home?
A: The council will count only your share, so joint ownership can reduce the amount counted.
Final Thoughts
It is completely natural to worry about losing your home to pay for care. But you should know that the system has protections in place for you and your family.
You cannot be forced to sell your home straight away, and there are options such as the 12-week disregard and Deferred Payment Agreements to give you breathing space.
Understanding how the financial assessment works, who is protected, and what your options are will help you make better decisions for your care and your family’s future.
If you are facing these decisions, reach out for professional advice early. Your local council, Age UK, Citizens Advice, or independent financial advisers can all help.
