How councils value your home for care home fees

By CareFinder Team · Published 2025-11-13 · Last reviewed 2026-09-18

When a home counts in an English care financial assessment, the council uses its current market value, then deducts 10% for selling costs and any mortgage or loan secured on it. A professional valuer should be used where the figure matters. A jointly owned home is different: only the resident's share is valued, at what a willing buyer would pay for it, which can be much less.

If your relative's home is included in a council financial assessment for care, it is valued at its current market value: the price a willing buyer would pay a willing seller. The council then deducts 10% for the costs of selling, and any mortgage or other loan secured on the property. If the home is jointly owned, only your relative's share is valued, and that share can be worth far less than half the property.

This guide explains the rules in England under the Care Act 2014, based on the Care and support statutory guidance (Annex B). It is general information; property and ownership disputes can be complex, so get specialist advice where a lot of money is at stake.

When does the home need valuing at all?

Often it does not. The value of a person's main home is ignored:

• when they receive care at home
• during a temporary stay in a care home, if they plan to return
• for the first 12 weeks after a permanent move into a care home
• while it is still lived in by a partner, a relative aged 60 or over, an incapacitated relative, or a child of the resident under 18, who lived there before the move

The council also has discretion to ignore it in other cases, for example where a carer who gave up their own home lives there. Only if none of these applies does the value of the home count as capital.

How is the value worked out?

The guidance sets out a simple formula for any capital asset, including property:

1. Start with current market value: the price a willing buyer would pay to a willing seller.
2. Deduct 10% if there would be expenses in selling it, such as estate agent and legal fees.
3. Deduct any debts secured on the property, such as a mortgage or an equity release loan.

The 10% deduction applies only while the home is unsold. Age UK's factsheet on property and paying for residential care explains that once the property is sold, the resident is treated as having their actual share of the proceeds after secured debts and the real costs of sale.

Does the council need a formal valuation?

Not always. If you and the assessor agree that your relative's capital is clearly above the upper capital limit, or clearly below the lower limit, a precise valuation is not needed. Where the figure matters, or is disputed, a professional valuer should provide a current market valuation. The council should bear in mind how close someone is to the limit when deciding.

How is a jointly owned home valued?

Jointly owned homes follow different rules from other shared assets.

For most joint assets, such as a joint bank account, the value is simply split equally between the owners unless there is evidence of unequal shares. Property and land are treated differently. The council must value the resident's beneficial interest: their right to a share of the sale proceeds.

Age UK explains that this means asking what a willing buyer on the open market would pay for that share on its own, not dividing the value of the whole house. A share in a home where another owner still lives, and intends to stay, may be very hard to sell, so its value can be low, and in some cases nil. The answer depends on the facts, including why the property was bought and whether that purpose continues, because a court would consider those factors before ordering a sale.

Tips for jointly owned homes

• Gather evidence of the ownership shares: the title at HM Land Registry, any declaration of trust, and who paid what.
• Ask the council to value your relative's share, not the whole property.
• If you disagree with the figure, ask for a professional valuation of the share itself.

What if we disagree with the valuation?

The guidance says disputes should be resolved as quickly as possible, and that councils should try to get an independent valuation of the person's beneficial share within the 12-week property disregard period. That gives the family time to consider options such as a deferred payment agreement before the home starts to count.

If you remain unhappy:

1. Ask the council for a written explanation of how it reached the value.
2. Provide your own evidence, such as a surveyor's valuation or recent sales of similar homes nearby.
3. Use the council's complaints procedure.
4. If that does not resolve it, complain to the Local Government and Social Care Ombudsman.

How does valuation affect a deferred payment agreement?

A deferred payment agreement lets the council pay care home fees and recover them later, usually when the home is sold. The council sets a limit on how much can be deferred. Under the statutory guidance, that equity limit is the value of the property, minus 10%, minus the lower capital limit, minus any debts secured on it. So an accurate valuation matters here too. Councils should review the arrangement as the amount deferred approaches 70% of that limit.

What about Scotland, Wales and Northern Ireland?

The broad approach of valuing property at market value, less debts and selling costs, is similar across the UK, but the capital limits and disregards differ. In Northern Ireland, the Health and Social Care Trust does the assessment and the home is ignored while certain relatives live there, as explained on nidirect. Scotland and Wales set their own capital limits, so check with the council in the nation where care is arranged.

Frequently asked questions

Does the council use the price we would like to sell for?

No. It uses current market value, which is what a willing buyer would realistically pay now. If you think the council's figure is too high, provide evidence and ask for a professional valuation.

Is the 10% deduction automatic?

It applies where there would be real expenses in selling, which is normally the case for a house. Once the home is sold, the actual sale costs are used instead.

Is my parent's half of a jointly owned house worth half the market value?

Not necessarily. The council must value the share itself at what a willing buyer would pay for it. If a co-owner lives there, the share may be worth much less, sometimes nothing.

Can the value change after the assessment?

Yes. Property values move, and the value can be reviewed, for example at annual reassessment or when the home is sold. After a sale, the actual proceeds are used.

Does an equity release loan reduce the value?

Yes. Any loan secured on the property, including equity release, is deducted from the market value.

Key takeaways

• Property is only valued if no disregard applies.
• The formula is market value, less 10% for selling costs, less secured debts.
• A precise valuation is only needed where it could change the outcome or is disputed.
• For jointly owned homes, only the resident's share is valued, at what a buyer would pay for that share.
• Challenge a valuation with evidence, and use the 12-week disregard to sort it out.