Do you have to sell your home to pay for care?
By CareFinder Team · Published 2025-11-13 · Last reviewed 2026-09-18
Not always. Care at home never requires selling your home. For a permanent care home stay in England, the home is ignored for the first 12 weeks and while a partner or certain relatives still live there. After that, the main choices are selling, keeping it with a council deferred payment agreement, or renting it out. Giving it away to avoid fees can be treated as deprivation of assets.
Nobody has to sell their home to pay for care at home, and many people who move into a care home do not have to sell straight away either. In England, the value of the home is ignored for the first 12 weeks of a permanent care home stay, and for as long as a partner or certain relatives still live there. After that, the main choices are to sell, to keep the home with a council deferred payment agreement, or to rent it out.
This guide explains how the rules work, the pros and cons of each option, and the mistakes to avoid. It is general information, not financial or legal advice.
When does the home count in the care means test?
If your relative needs care, the council first assesses their needs and then carries out a financial assessment (means test) of their income and capital.
- Care at home: the value of the home they live in is not counted. The NHS guidance on paying for your own care confirms you will not have to sell your home to pay for help in your own home.
- **Temporary or respite care home stays:** the home is not counted.
- Permanent care home stay: the home usually counts as capital, unless one of the exceptions below applies.
In England for 2026/27, the upper capital limit is £23,250 and the lower limit is £14,250. Because most homes are worth more than the upper limit, a home that counts usually means your relative pays the full fee.
When is the home ignored?
Age UK's guide on whether you have to sell your home lists the main situations where the home is disregarded because someone still lives there:
- a partner, spouse or civil partner;
- a relative aged 60 or over;
- a relative under 60 who is disabled;
- a child of the resident aged under 18;
- an estranged or divorced partner who is a lone parent.
Councils also have discretion to ignore the home in other cases, for example where a carer gave up their own home to look after your relative. They do not have to, so ask.
The 12-week property disregard
When someone moves permanently into a care home and the home does count, it is still ignored for the first 12 weeks. During that time the council may help with fees if your relative's other savings are below the upper limit. Use the 12 weeks to decide what to do, not to rush a sale.
What are the options for the house?
1. Sell the home
Selling gives a clear sum to pay fees and removes the costs of an empty property (insurance, council tax, repairs, security). The money then counts as capital until it falls to the upper limit.
Points to weigh: a sale takes time and may not achieve the best price if rushed. Once the money is spent, it is gone, so work out how long it will last at the quoted fee, allowing for yearly increases.
2. Keep the home with a deferred payment agreement
A deferred payment agreement (DPA) lets the council pay the care home fees and recover the money later, usually when the home is sold or from the estate after death. In England, councils must offer a DPA to people who meet the criteria, broadly that they are in permanent residential care, have savings below the upper limit, and the home is not disregarded.
Points to weigh: interest is charged, and councils can charge set-up and administration fees. The debt grows over time and is secured against the property. The home must be insured and maintained.
3. Rent the home out
Renting can bring in income to help pay the fees, and can be combined with a DPA.
Points to weigh: rental income is taxable and counts as income in the means test. Being a landlord brings responsibilities for safety, repairs and tenants, which may fall on the family. Letting agents' fees reduce the income.
4. Keep it because someone still lives there
If a partner or a qualifying relative lives in the home, it is ignored in the means test and does not need to be sold while they remain.
How do the options compare?
| Option | Main benefit | Main drawback |
|---|---|---|
| Sell | Clear funds, no empty-property costs | Irreversible; can be rushed |
| Deferred payment agreement | Keeps the home; no immediate sale | Interest and fees build up as a debt |
| Rent out | Income towards fees | Landlord duties; income is taxed and assessed |
Can you give the house to your children to avoid care fees?
This is one of the most common questions and the answer is usually no. If the council decides someone deliberately reduced their assets to avoid care fees, it can treat them as still owning the asset. Age UK's guide to deprivation of assets explains there is no fixed time limit. The council looks at whether avoiding care fees was a significant reason and whether your relative could have expected to need care at the time.
Transferring the house, putting it into certain trusts, or making large gifts shortly before care is needed are all likely to be looked at closely. Get specialist legal advice before any transfer.
Will there be tax to pay when the house is sold?
Selling a home that has been someone's main residence is often free of Capital Gains Tax because of Private Residence Relief. Letting the property out, or leaving it empty for a long time, can affect this. Check the rules on GOV.UK about tax when you sell your home, or ask a tax adviser.
Inheritance Tax is a separate question. A home left to children or grandchildren may qualify for an extra allowance, and there are rules protecting that allowance when someone sells to move into care.
How is it different in Scotland, Wales and Northern Ireland?
- Scotland: personal and nursing care are free for those assessed as needing them, but accommodation costs in a care home are means-tested, and the home can count, with Scotland's own capital limits set each April. Ask the council's social work department how the rules apply.
- Wales: there is a single, higher capital limit for residential care. Check the current figure on the Welsh Government's charging page.
- Northern Ireland: the Health and Social Care Trust carries out the financial assessment. The capital limits and the 12-week rule are similar to England's.
Frequently asked questions
Does the care cap mean my parent will not have to sell?
No. The planned £86,000 lifetime cap on personal care costs in England was cancelled by the government in July 2024 and has not been introduced. The means-test rules described above still apply.
Can we sell the house to a family member?
Yes, at full market value, with the proceeds counted as your relative's capital. Selling for less than it is worth may be treated as deprivation of assets for the difference. Get an independent valuation and legal advice.
What happens if my parent's savings run out before the house sells?
Tell the council early. It may offer a deferred payment agreement or a short-term arrangement while the sale goes through. The NHS advises contacting the council about three months before savings are expected to fall below the upper limit, because funding normally starts from the date you contact them.
Does my parent's partner have to move out?
No. If your parent's partner still lives in the home, its value is ignored in the means test, and the partner can stay.
Key takeaways
- The home is never counted for care received at home, only for a permanent care home stay.
- It is ignored for the first 12 weeks, and while a partner or qualifying relative lives there.
- The main options are selling, a deferred payment agreement, or renting it out, and each has costs.
- Giving the home away to avoid fees can be treated as deprivation of assets.
- Rules differ in Scotland, Wales and Northern Ireland; take independent advice before any big decision.