One of the biggest worries families have when looking at care is whether a parent, partner or loved one will have to sell their house to pay for it.
It is an understandable concern. A home is not just a financial asset. It may be where someone raised their family, built a life, or planned to stay for as long as possible. So when care fees enter the conversation, it can feel emotional, confusing and, frankly, a bit overwhelming.
The short answer is: not always.
Whether someone has to sell their house to pay for care depends on their financial situation, the type of care they need, whether the move is temporary or permanent, and who still lives in the property.
This guide explains the main rules in England, including when a property is counted, when it may be ignored, and what options may exist if selling the home is not the right choice straight away.
How Are Care Home Fees Assessed?
If someone needs care, the first step is usually a care needs assessment from the local authority. This looks at what support the person needs and whether a care home, care at home, respite care or another type of support may be appropriate.
If the local authority agrees that care is needed, it may then carry out a financial assessment. This is sometimes called a means test.
The financial assessment looks at income, savings, investments and, in some cases, property. It helps decide whether the person must pay for their own care, whether the local authority will contribute, or whether the cost will be shared.
For 2026 to 2027 in England, the main capital limits are:
| Capital or savings | What this usually means |
|---|---|
| Above £23,250 | The person is usually expected to pay the full cost of their care |
| Between £14,250 and £23,250 | The person may receive some support, but is expected to contribute from income and capital |
| Below £14,250 | Capital is generally ignored, although income may still be taken into account |
These figures apply to adult social care means-testing in England. Rules can differ in Scotland, Wales and Northern Ireland, so families should always check local guidance if the person lives outside England.
Is Your House Always Included in the Financial Assessment?
No. Your home is not always included.
This is where many families understandably get tangled up. The value of a property may be included in a care home financial assessment, but only in certain circumstances.
The first big distinction is between care at home and permanent residential care.
If someone is receiving care in their own home, the value of the home they live in is not included in the financial assessment. The house is their home, not a pot of cash sitting on the table.
However, if someone moves permanently into a care home, the local authority may include the value of their former home in the financial assessment, unless one of the property disregard rules applies.
When Might the House Be Ignored?
A property may be disregarded, meaning its value is not counted, if certain people continue to live there.
This may include:
- A husband, wife, civil partner or unmarried partner
- A close relative aged 60 or over
- A dependent child under 18
- A relative who is disabled or incapacitated
In these situations, the property may be ignored for as long as that person continues to live there. This is especially important when one half of a couple moves into care and the other remains at home. In that case, the person moving into care is not normally expected to sell the house from under their partner’s feet. Thankfully, the system has not completely lost the plot.
The rules can be detailed, so it is always worth asking the local authority to confirm how they will treat the property before making any major financial decision.
What Is the 12-Week Property Disregard?
If someone moves permanently into a care home and their property is going to be counted, the local authority may ignore the value of the property for the first 12 weeks.
This is known as the 12-week property disregard.
It is designed to give families some breathing room. During this period, the local authority may help with care fees if the person’s other capital is below the upper limit and they meet the eligibility rules.
The 12-week disregard can be helpful because it gives families time to:
- Understand the care fees
- Consider whether the care home move is right long term
- Speak to the local authority
- Get financial advice
- Decide whether to sell, rent out or keep the property
- Explore a deferred payment agreement
It is not always automatic in every situation, so families should ask the local authority directly whether it applies.
Do You Have to Sell the House Straight Away?
Usually, no.
Even if the property is included in the financial assessment, selling the house immediately is not always the only option.
One alternative may be a deferred payment agreement. This is an arrangement with the local authority where the council helps pay care home fees and the money is repaid later, usually when the property is sold or after the person dies.
In simple terms, it can allow someone to use the value of their home to pay for care without having to sell it straight away.
A deferred payment agreement may be useful if:
- The person owns their home
- Their savings, excluding the value of the property, are below the upper capital limit
- They are moving into long-term residential care
- The local authority agrees they are eligible
- The property can be used as security for the agreement
It is not free money. It is a loan-style arrangement and interest or administration fees may apply. Families should always check the exact terms and consider independent financial advice before agreeing to anything.
Could You Rent Out the Property Instead?
In some cases, families choose to rent out the property rather than sell it immediately.
Rental income may then be used towards care home fees. This can sometimes help preserve the property for longer, although it comes with its own responsibilities, including maintenance, insurance, tax, letting agents, vacant periods and tenant management.
It is not the right option for everyone. Being a landlord is not exactly a relaxing hobby, especially when the family is already dealing with care decisions. But for some people, it can form part of a wider care funding plan.
Before renting out a property, it is sensible to speak to a financial adviser, solicitor or local authority finance team.
What If the Care Home Stay Is Temporary?
If the care home stay is temporary, the property is usually treated differently from a permanent move.
For example, someone may go into a care home for respite care, recovery after illness, or while family carers take a break. In these cases, the person may still be expected to return home, so the value of their main home is normally not treated in the same way as it would be for a permanent care home placement.
This is one reason why short-term care can be useful for families who are still deciding what level of support is needed. You can read more in our guide to what residential care is and when it may be suitable.
At Merling Care Homes, families can speak with the team about different types of care, including residential care, nursing care and respite care, depending on the needs of the person.
What About NHS Funding?
Not all care is paid for through local authority means-testing.
Some people with significant health needs may be eligible for NHS Continuing Healthcare, often called CHC. This is arranged and funded by the NHS and is not means-tested. If someone qualifies, the NHS pays for the full cost of their assessed care package.
For people in nursing homes who do not qualify for CHC but do need support from registered nurses, NHS-Funded Nursing Care may also apply. This is a contribution paid by the NHS directly to the nursing home.
NHS funding can be complex, and not everyone will qualify. But it is worth exploring if the person has substantial medical, nursing or complex care needs.
Glebe House provides both residential and nursing care in Staines, while Moorland House provides residential care in Barton-on-Sea. The right type of care depends on the person’s needs, not just their financial position.
Can You Give Away Your House to Avoid Care Fees?
This is one of the most common questions families ask.
Giving away a house, transferring it to children or moving money around to avoid care fees can be treated as deliberate deprivation of assets. If the local authority believes someone has intentionally reduced their assets to avoid paying for care, it may still treat them as if they own the asset.
In plain English: trying to dodge the rules can backfire.
There may be perfectly legitimate reasons for gifting money or transferring property, but care funding should not be handled with guesswork. Families should get proper legal or financial advice before making any major decisions involving property.
Questions Families Should Ask Before Making a Decision
Before deciding whether to sell a house, rent it out, apply for a deferred payment agreement or use savings, families may want to ask:
- Is the care home move temporary or permanent?
- Has the local authority completed a care needs assessment?
- Has a financial assessment been carried out?
- Will the property be included or disregarded?
- Does a spouse, partner, relative or dependent still live in the home?
- Does the 12-week property disregard apply?
- Is a deferred payment agreement available?
- Could NHS Continuing Healthcare be relevant?
- Would renting out the property help cover fees?
- Has the family taken independent financial advice?
Care funding is one of those areas where the wrong assumption can be expensive. It is much better to ask awkward questions early than discover a problem later.
Care at Merling Care Homes
At Merling Care Homes, we understand that care decisions are rarely just practical. They are emotional, financial and personal.
Families are often trying to balance safety, comfort, dignity, cost and timing, all while supporting someone they love. That is a lot to carry.
Glebe House in Staines provides residential and nursing care in a warm, homely setting. The home supports residents with day-to-day care, nursing needs, meals, activities, companionship and personalised support.
Moorland House in Barton-on-Sea is a small residential care home close to the coast, offering a friendly and comfortable environment for older people who need support with daily living, routine and companionship.
Both homes focus on creating a “home from home” atmosphere, where residents feel known as individuals and families feel included in the care journey.
Frequently Asked Questions
Do I automatically have to sell my house to pay for care?
No. Whether the property is counted depends on the type of care, whether the move is permanent, who lives in the property and the person’s wider financial situation.
What happens if my husband, wife or partner still lives in the house?
The property is usually disregarded if a spouse, civil partner or partner continues to live there. This means its value is not normally counted in the care home financial assessment while they remain living in the property.
What is the 12-week property disregard?
This is where the local authority ignores the value of a person’s home for the first 12 weeks of a permanent care home placement, provided the person meets the relevant conditions.
Can I delay selling the house?
Possibly. A deferred payment agreement may allow the local authority to help pay care home fees, with the money repaid later when the property is sold or after death.
Can my children inherit the house if I go into care?
Possibly, but this depends on care costs, funding arrangements, whether the property is sold, and the person’s overall estate. Giving away property to avoid care fees can be challenged by the local authority.
Should we get financial advice?
Yes. Care funding and property decisions can have long-term consequences. Independent financial advice, especially from someone experienced in later-life care funding, can be very helpful.
Final Thoughts
You do not always have to sell your house to pay for care. Sometimes the property is ignored, sometimes there is time to decide, and sometimes a deferred payment agreement or another funding option may be available.
The key is not to panic and not to assume. The rules depend on the person’s circumstances, and small details can make a big difference.
If you are considering care for yourself or a loved one, Merling Care Homes welcomes enquiries at any stage. Families are invited to arrange a visit to Glebe House in Staines or Moorland House in Barton-on-Sea, meet the team and talk through the care options available.