The short answer: no, you can’t be forced to sell your house. But if you go into a care home
and your property isn’t protected by one of the specific exemptions, your home will be
counted as an asset and you’ll be expected to fund your own care until it’s paid for.
With residential care now averaging £67,500 a year, that can drain a lifetime’s worth of bricks and
mortar frighteningly fast.
Most people I meet at my Dying to Know workshops are shocked by this. They’ve spent 30 or 40
years paying off a mortgage, and nobody ever told them that the house they assumed they’d
pass on to their children could end up paying for a care home instead.
So let’s break it down no jargon, no waffle so you actually know where you stand.
How Much Does a Care Home Actually Cost in 2026?
Let’s start with the numbers, because they’ve just been updated and they’re eye-watering:
Residential care: £1,298 per week that’s £67,496 a year
Nursing care: £1,535 per week £79,820 a year
Dementia care: £1,343 per week residential, more for nursing
These are national averages. In the South East, where many of us live, the real figure is often
higher.
The average stay in a care home is around three years. Do the maths: that’s potentially £200,000
or more and that’s just for one person.
The Means Test: Where the £23,250 Threshold Comes In
When you need care, your local authority carries out a financial assessment a means test.
They look at your savings, investments, income, and yes, your property.
Here are the two numbers that matter:
Above £23,250 in assets: You pay for everything yourself. The council won’t contribute a
penny.
Below £14,250: The council pays, and you just contribute from your income.
Between the two: You pay a sliding contribution.
These thresholds have been frozen for years. They haven’t kept up with house prices, inflation,
or care costs. If you own a home even a modest one you’re almost certainly above the
upper limit.
So When IS Your House Counted?
Here’s the crucial bit. Your home is only included in the means test if you’re moving into a care
home permanently. If you’re receiving care at home (a carer coming to you), your property is
not counted. That’s an important distinction.
But if you do move into residential care, your home IS counted as capital unless one of these
people is still living in it:
Your spouse or partner (including civil partner)
A relative aged 60 or over
A dependent child under 18
A relative who is disabled or incapacitated
If any of the above apply, the value of your home is “disregarded” it’s taken out of the
equation entirely.
There’s also a 12-week property disregard when you first enter a care home. This gives you
breathing room the council must ignore your property’s value for the first 12 weeks, so you’re
not pressured into selling immediately.
What About a Deferred Payment Agreement?
Even after the 12 weeks, you don’t have to sell straight away. You can ask your local authority
for a Deferred Payment Agreement (DPA). This works like a loan secured against your property
the council pays your care fees and recovers the money later, usually when the house is
eventually sold or from your estate.
It’s not perfect (interest and admin charges apply), but it means nobody is forced to sell their
home while they’re still alive if they don’t want to.
The problem? Most people don’t know this option exists until they’re already in crisis.
“Can’t I Just Give My House to the Kids?”
This is the question I get asked more than any other. And I understand why it seems like the
obvious solution.
But here’s what catches people out: there is no 7-year rule for care fees.
Most people know about the 7-year rule for inheritance tax if you give something away and
survive seven years, it’s out of your estate. They assume the same applies to care costs.
It doesn’t.
If your local authority believes you deliberately gave away assets your house, savings,
anything — to reduce what you’d pay for care, they can treat you as if you still own them. This is
called “deprivation of assets” and there is no time limit. They can look back 10, 15, even 20 years
if they think the motive was to avoid care fees.
The test isn’t when you did it. It’s why you did it. And if you can’t demonstrate a genuine reason
other than avoiding care costs, the council can and regularly does add the value back into
your assessment.
What Can You Actually Do?
I’m not a financial adviser or solicitor, and I’d always recommend getting professional advice for
your specific situation. But here’s what I tell people at my workshops the things everyone
should at least know about:
- Make a Lasting Power of Attorney (LPA) now, while you can. If you lose mental capacity
without one, your family can’t manage your finances or make care decisions. The new digital
LPA system makes this faster than ever, but you still need to do it before you need it. - Understand the difference between care at home and residential care. Your house isn’t
counted if you’re receiving care at home. For many people, staying at home with support is
both preferred and financially smarter. - Know your rights around the 12-week disregard and Deferred Payment Agreements. Don’t
let anyone rush you into selling a property. - Don’t assume giving things away is the answer. Speak to a professional before transferring
any assets. The deprivation of assets rules are far reaching and there’s no time limit. - Talk to your family. The biggest problem I see isn’t money, it’s that nobody talked about it
until it was too late. Why I Run the Dying to Know Sessions
This is exactly why I started the Dying to Know lunchtime sessions. An hour of your time over lunch to understand the basics that could save your family tens of thousands of pounds and months of stress.
We cover wills, powers of attorney, what happens with your pension, how care fees really work, and what you can do right now to make sure your wishes are actually carried out. - No selling, no jargon, no scare tactics. Just the stuff you need to know explained in plain
English by someone who’s spent 35 years helping people understand how money really works. - Because here’s the thing: checking the basics now saves chaos later. If you’d like me to come and run a session for your group, club, or organisation or if you just want to have a chat visit moneytrainers.co.uk/dying-to-know-lunchtime-sessions.
Richard Smith runs Money Trainers (moneytrainers.co.uk) teaching people how money works, not what to do with it. The Dying to Know lunchtime sessions are free, last about an hour, and are available for clubs, groups, and organisations across Sussex.