Selling a house to pay for care

Moving into a care home is a hard decision, and the question of the house often comes at the worst possible moment. In England, you may not have to sell straight away, or at all: the home isn’t counted for the first 12 weeks of a permanent care home stay, it’s ignored if a partner or certain relatives still live there, and a deferred payment agreement can let the council pay now and be repaid later. Talk to your council and a free adviser before you put the house on the market.

This guide explains how the home is treated when paying for care, who can sell it if the owner can’t, and why it’s worth not rushing. It describes the rules in England unless we say otherwise.

Where can you get free advice first?

Please speak to these before making any decision about the house:

Your council’s adult social care team. They carry out the care needs assessment and the financial assessment that decides what you’ll pay.
Age UK. The NHS lists the Age UK Advice Line (0800 678 1602) as a free source of help. In Wales, Scotland and Northern Ireland, Age Cymru, Age Scotland and Age NI give advice on the local rules.
MoneyHelper. Free, government-backed guidance, including on paying for care (0800 138 7777).

The NHS also recommends getting specialist financial advice to compare your options before committing to any care arrangement.

Does your home count when paying for care?

It depends where the care is provided and who else lives in the home.

Care at home. The NHS explains that your home won’t need to be sold to pay for care you receive at home.

Care home. If you move permanently into a care home, the value of your home can count as capital in the council’s financial assessment. In England, Age UK explains the capital limits:

over £23,250: you’ll usually pay your own fees
between £14,250 and £23,250: the council contributes, and you pay from your income plus a contribution from your capital
under £14,250: the council contributes, and you pay from your income only

When the home is ignored. Age UK explains that the home is disregarded if your partner still lives there, or a relative who is aged 60 or over or disabled lives there.

The 12-week property disregard. Even if none of those apply, the home isn’t counted for the first 12 weeks after you move permanently into a care home, provided it was your main residence. That gives you time to decide what to do.

Wales, Scotland and Northern Ireland have their own rules. In Wales, for example, the Welsh Government says that people with capital over £50,000 may have to pay the full cost of residential care. Check the rules where you live with your council or Age Cymru, Age Scotland or Age NI.

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Want to know what a cash buyer would offer?

Tell us about the property in 2 minutes. Vetted buyers, individuals and institutions, reply with offers.

Cash buyers usually offer less than full market value in return for speed and certainty. You are free to turn down any offer.

What is a deferred payment agreement?

A deferred payment agreement can mean the house doesn’t have to be sold while the person is in care. The NHS explains that the council pays for the care home and you repay it later, when you choose to sell your home or after your death. Age UK notes it can also act as a bridge while the house is being sold.

Ask your council whether you’re eligible, how the agreement works and what it will cost, including any interest or fees.

Who can sell the house if the owner can’t?

If the homeowner can make their own decisions, they sell the house themselves, perhaps with family helping. If they can’t, someone needs legal authority.

A lasting power of attorney (LPA). A property and financial affairs LPA lets the people named (the attorneys) make decisions for the owner. GOV.UK explains that it must be registered with the Office of the Public Guardian before it can be used, and registration takes 8 to 10 weeks if there are no mistakes. An LPA is only legally binding in England and Wales.

A deputy. If the owner lacks mental capacity and there’s no LPA, GOV.UK explains that you can apply to the Court of Protection to become their deputy. You’ll get a court order that says what you can and cannot do, so check that it covers selling the home.

Acting in their best interests. The Mental Capacity Act 2005 says that anything done for someone who lacks capacity must be done in their best interests. GOV.UK adds that deputies must apply a high standard of care, which might mean getting advice from relatives and professionals.

Selling below market value. HM Land Registry’s guidance explains that attorneys generally can’t sell someone’s property for less than market value, and that where the owner lacks capacity, an undervalue sale needs a Court of Protection order. That matters if you’re considering a discounted quick sale, so talk to a solicitor before accepting any offer.

Scotland and Northern Ireland have different systems for managing someone’s affairs, so take local advice there.

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What else should you know?

Council tax. In England, GOV.UK explains that a home left empty because the owner has moved into a care home or hospital is exempt from council tax. In Northern Ireland, where domestic rates apply, you can apply for an exclusion if all the legal owners are in permanent care.

Capital Gains Tax. You don’t usually pay Capital Gains Tax on your home. GOV.UK explains that if you’re in long-term residential care, you get relief for the last 36 months before you sell, as long as you meet the other conditions.

Deprivation of assets. Age UK explains that if the council thinks someone has reduced their assets on purpose so they won’t be counted, for example by giving money away or transferring the home to someone else, it may still include the value of those assets in the financial assessment. Keep records of why decisions about the house were made.

Looking after the empty home. Tell the insurer, keep it secure and visit regularly. Our guide to selling an empty house has more practical tips.

Why is it worth not rushing?

Age UK’s advice is not to rush into selling your home, and to explore the options through your council’s financial assessment first. Between the 12-week disregard and deferred payments, there’s often more time than families realise.

Taking that time also protects the price. A quick sale to a cash buyer usually means accepting less than full market value in return for speed and certainty, and when the money is paying for someone’s care, every pound matters. An estate agent sale may achieve more if time allows. Our guide to how much cash buyers pay explains the difference.

Once you’ve had advice, a quick sale may still be right: perhaps the house needs work that would put off buyers, the family can’t manage an empty property, or a deferred payment isn’t available. If so, you can tell us about the property and, with the owner’s or their attorney’s consent, we’ll pass it to vetted cash buyers on our panel. We don’t buy or value homes ourselves, and there’s no obligation to accept any offer. You might also find our guide to downsizing helpful if a smaller home, rather than care, is an option.

Common questions

Do I have to sell my house to pay for a care home?

Not necessarily, and not straight away. In England, your home isn't counted in the council's financial assessment for the first 12 weeks of a permanent care home stay, or at all if a partner or certain relatives still live there. You may also be able to get a deferred payment agreement, so the council pays and is repaid later. Speak to your council's adult social care team and Age UK first.

What is the 12-week property disregard?

In England, when someone moves permanently into a care home, the value of the home they've left isn't counted as capital for the first 12 weeks. Age UK explains that this gives time to decide what to do with the property. It applies only if the home was their main residence.

Can I sell my parent's house if they have dementia?

Only with the right legal authority. If your parent made a property and financial affairs lasting power of attorney that's registered, the attorney can act for them. If there's no LPA and they lack capacity, someone would need to apply to the Court of Protection to become their deputy. Either way, decisions must be made in your parent's best interests, so take legal advice before accepting any offer.

Will the council count it if I sell my house for less than it's worth?

Councils look at whether someone has reduced their assets on purpose to avoid care fees, which is called deprivation of assets. If they decide that's happened, they may still count the value you no longer have. If you're considering a discounted sale, ask your council or an adviser how it's likely to be treated and keep a record of your reasons.