The Short Answer
No one can force you to sell your home. But depending on the circumstances, its value may be included in the financial assessment that determines how much you pay for care. This is what worries most families, and rightly so — it’s a significant concern. Let’s break down exactly when your home is counted and when it isn’t.
When Your Property IS Counted
If your parent moves into a care home permanently and they own their property, its value will usually be included in the local council’s financial assessment. This means that if the property plus other savings exceed £23,250, your parent will be classed as a self-funder and expected to pay their own care home fees.
However, this doesn’t mean the house must be sold immediately — or at all. There are several important protections and alternatives.
When Your Property Is NOT Counted
The property is completely disregarded (not counted) in the financial assessment if any of the following people still live there:
- Your parent’s spouse, civil partner, or cohabiting partner
- A relative who is aged 60 or over
- A relative who is disabled or incapacitated
- A child of the person going into care who is under 18
In some cases, the council may also use discretion to disregard the property if someone else lives there — for example, a carer who gave up their own home to look after your parent. This isn’t automatic though; you’ll need to make the case to the council.
The 12-Week Property Disregard
For the first 12 weeks after your parent permanently moves into a care home, the property’s value is automatically ignored. This gives families breathing space to make decisions without the pressure of immediate sale.
During these 12 weeks, the council will fund the care (if your parent’s non-property assets are below £23,250), and you can explore your options.
Deferred Payment Agreements
This is the main alternative to selling. A Deferred Payment Agreement (DPA) works like a loan from the council:
- The council pays the care home fees on your parent’s behalf
- A legal charge is placed on the property (similar to a mortgage)
- The debt is repaid when the property is eventually sold — often after your parent passes away
- Interest is charged on the deferred amount (currently around 3-4% per year)
Your parent has a legal right to request a DPA if they meet the eligibility criteria. The council cannot unreasonably refuse.
Other Options to Avoid Selling
- Renting the property: Rental income can be used to contribute towards care fees. The property’s capital value may still be counted, but if it’s in a DPA this is managed.
- Equity release: A lifetime mortgage can release cash from the property without selling. However, interest compounds and this should only be done with independent financial advice.
- Family purchase: A family member could buy the property at market value. Be careful here — selling below market value could be treated as deprivation of assets.
What Is Deprivation of Assets?
If the council believes your parent deliberately gave away money or property to avoid paying for care, they can treat them as if they still own those assets. This is called deprivation of assets.
Common examples that may be challenged:
- Gifting the house to children shortly before going into care
- Transferring savings to family members
- Spending large sums unusually (expensive holidays, gifts) when care is foreseeable
The council looks at the timing and the motivation. Planning well in advance is different from making changes when care is clearly needed.
Get Independent Financial Advice
Care funding is complex, and the stakes are high. A specialist care fees adviser (regulated by the FCA) can help you understand all the options. The Society of Later Life Advisers (SOLLA) has a directory of qualified advisers at societyoflaterlifeadvisers.co.uk.
If you’re at the stage of looking at care homes, use CareFinder to compare options in your area and get a clear picture of costs before making any financial decisions.