Can You Avoid Selling Your House to Pay for Care?

One of the most worrying questions families ask about care home fees is simple: will we have to sell the house?

For many older people, the family home is their biggest asset. It may also be full of memories, shared history and emotional meaning. For relatives, the thought of selling it to pay for care can feel upsetting, unfair or overwhelming, especially when decisions are being made during illness, hospital discharge, dementia progression or a sudden crisis.

The short answer is: you may not always have to sell the house immediately, and in some cases the home may not be counted at all. But if someone moves permanently into a care home and owns property, the value of that property may be included in the financial assessment unless a disregard or other arrangement applies.

This guide explains when a house may be counted for care home fees, when it may be ignored, whether you can delay selling, how deferred payment agreements work, whether renting out the home is an option, and why giving away property to avoid care fees can cause serious problems.

If you are close to signing care home paperwork, read our guide to care home contracts and what to check before signing. If the person is already paying privately, you may also find our guides to self-funding a care home and what happens when money runs out in a care home useful.

Do you always have to sell your house to pay for care?

No, not always. Whether a house must be sold, counted or protected depends on the person’s circumstances, the type of care they need, whether the care is temporary or permanent, who still lives in the property, and whether the local authority or NHS is involved.

There are several situations where selling the house may not be necessary straight away, or at all.

These may include:

• the person receives care at home rather than moving into a care home;
• the care home stay is temporary rather than permanent;
• a spouse, civil partner or qualifying relative still lives in the property;
• the 12-week property disregard applies;
• the person enters into a deferred payment agreement with the local authority;
• the property is rented out to help pay care fees;
• the person qualifies for NHS Continuing Healthcare;
• the property is disregarded for another reason under the rules.

However, if someone moves permanently into a care home and owns a property that is not disregarded, the local authority may include the value of the home in the financial assessment. If the person has enough capital, they may be expected to self-fund their care.

Care at home vs care home: the house is treated differently

The first important distinction is whether the person receives care at home or moves into a care home.

If someone receives care in their own home, the value of their main home is usually not counted in the financial assessment for home care. The local authority may still assess income, savings and other capital, but the home they are living in is normally not treated in the same way as it might be for permanent residential care.

If someone moves permanently into a care home, the position can change. The council may look at the value of their home unless it is disregarded.

This is why some families compare care home care with home care or live-in care before making a decision. Staying at home may not be safe or realistic for everyone, but it can affect both emotional wellbeing and financial planning.

For more on alternatives to a care home, see our guide to home care in the UK and our comparison of live-in care vs care home costs.

Temporary care home stays and the family home

If the care home stay is temporary, the person’s home may be treated differently from a permanent care home move. For example, someone might go into a care home for respite care, recovery after illness, or while longer-term decisions are being made.

If the intention is for the person to return home, the property may not be treated in the same way as when someone moves permanently into residential care. However, the details matter. The council will look at the circumstances, the care plan and whether returning home is realistic.

Questions to ask include:

• Is this care home placement temporary or permanent?
• Who has decided that?
• Is there a plan for the person to return home?
• What support would be needed at home?
• Has reablement or home care been considered?
• Has the property been included in the financial assessment?
• If yes, why?

If there is disagreement about whether a placement is temporary or permanent, ask for the local authority’s decision in writing.

When is the house counted for care home fees?

If someone moves permanently into a care home, the local authority may include the value of their home in the financial assessment unless a disregard applies.

The home is more likely to be counted if:

• the person owns the property;
• they have moved permanently into a care home;
• no spouse, civil partner or qualifying person continues to live there;
• no mandatory or discretionary disregard applies;
• the person’s capital is above the relevant threshold;
• the care is not fully NHS-funded.

If the property is counted, the person may be treated as having capital above the upper limit and may need to pay their own care home fees, at least after any temporary disregard period ends.

When is the house disregarded?

A property disregard means the local authority ignores the value of the home in the financial assessment. This can be temporary or ongoing, depending on the reason.

The property may be disregarded if certain people continue to live there. This commonly includes:

• a spouse or civil partner;
• an unmarried partner in some circumstances;
• a close relative aged 60 or over;
• a dependent child;
• a relative who is disabled or incapacitated.

The exact rules can be detailed, and local authorities may also have discretion in some cases. If someone lives in the property and you believe the home should be disregarded, ask the council to explain its decision in writing.

What if a spouse or partner still lives in the house?

If a spouse or civil partner still lives in the property, the home is normally disregarded in the care home financial assessment. This means the person moving into care should not usually be forced to sell the home while their spouse or civil partner continues to live there.

This is one of the most important protections in the care funding system.

However, couples should still ask for clear written confirmation from the local authority. They should also check how income is treated, especially occupational pensions, joint savings and shared expenses.

Questions to ask include:

• Will the property be disregarded because a spouse or partner lives there?
• How will joint savings be treated?
• How will pension income be assessed?
• Will the spouse at home be left with enough income to live on?
• Does any pension sharing rule apply?

What if an adult child lives in the house?

This can be more complicated. If an adult child lives in the property, the home is not automatically disregarded in every case. The rules may depend on the adult child’s age, disability, dependency and circumstances.

A property may be disregarded if a qualifying relative lives there, such as a relative aged 60 or over, a disabled relative, or a dependent child. In other situations, the council may have discretion, but it does not always have to disregard the property.

This can be particularly difficult where an adult child has lived in the home for many years, cared for the parent, or has nowhere else to go.

Ask the council:

• Are you treating the property as disregarded?
• If not, why not?
• Have you considered who lives there?
• Have you considered any caring role?
• Have you considered disability, age or dependency?
• Have you considered discretionary disregard?
• Can you provide the decision in writing?

If the decision could make someone homeless or cause serious hardship, consider getting advice.

What is the 12-week property disregard?

The 12-week property disregard is a rule that may apply when someone first moves permanently into a care home and their property would otherwise be counted.

During this period, the local authority may ignore the value of the property for the first 12 weeks of permanent residential care. This can give the person and family time to decide what to do next.

The 12-week disregard may help families avoid rushing into a sale immediately after a move. It may also give time to consider:

• whether the care home placement is definitely permanent;
• whether the house should be sold;
• whether the house could be rented out;
• whether a deferred payment agreement is suitable;
• whether NHS Continuing Healthcare should be considered;
• whether there are any disputes about mental capacity or best interests.

Do not assume the 12-week disregard applies automatically in every case. Ask the council to confirm whether it applies and what happens when it ends.

What happens after the 12-week disregard ends?

After the 12-week property disregard ends, the value of the home may be included in the financial assessment unless another disregard applies or a deferred payment agreement is arranged.

This is often the point where families feel pressure to sell. But selling is not always the only immediate option. A deferred payment agreement may allow care fees to be delayed and recovered later from the value of the home.

Before the 12 weeks end, ask:

• What will the assessed contribution be after the disregard?
• Will the property be counted?
• Is a deferred payment agreement available?
• Will the current care home fee be covered?
• Will a top-up fee be needed?
• What happens if the property is not sold?
• What happens if the person or attorney refuses a deferred payment agreement?

What is a deferred payment agreement?

A deferred payment agreement is an arrangement with the local authority that allows someone to delay paying some care home fees. The council helps pay the care home fees, and the money is repaid later, usually when the property is sold or after the person dies.

In simple terms, it works like a loan secured against the property. It may help someone avoid selling their home immediately, but it does not usually mean care becomes free. The debt builds up and must be repaid.

MoneyHelper describes a deferred payment agreement as a way to use the value of a home to cover care home costs while delaying payment until later. You can read more in its guide to deferred payment agreements for long-term care.

Does a deferred payment agreement mean you avoid selling forever?

Not necessarily. A deferred payment agreement can delay selling the house, but the money must normally be repaid eventually. This often happens when the house is sold, when the person dies, or when the agreement ends.

Some families use a deferred payment agreement because they do not want to sell during a rushed or emotional period. Others use it because the housing market is poor, family members need time to make decisions, or they want to rent the property out.

However, interest and administration fees may apply. The amount owed can grow over time. A deferred payment agreement should be understood as a debt secured on the property, not a grant.

Who can get a deferred payment agreement?

Eligibility rules apply. In broad terms, a deferred payment agreement may be relevant where someone:

• needs permanent residential care;
• owns a property;
• has limited savings apart from the property;
• has a property that is not disregarded;
• can offer adequate security to the council;
• agrees to the terms of the arrangement.

The details vary, so ask the local authority for its deferred payment policy and written eligibility decision.

Questions to ask before agreeing to a deferred payment agreement

Before agreeing to a deferred payment agreement, ask:

• Is the person eligible?
• How much will the council pay?
• Will it cover the full care home fee?
• Will there still be a top-up fee?
• What interest rate applies?
• What administration fees are charged?
• How is the debt secured?
• Will a legal charge be placed on the property?
• What happens if the care home fee increases?
• What happens if the property falls in value?
• Can the property be rented out?
• When must the money be repaid?
• What happens after death?
• Can the agreement be ended early?

Do not sign a deferred payment agreement without understanding the costs and long-term consequences.

Can you rent out the house to pay for care?

Renting out the property may help pay care home fees while avoiding an immediate sale. This can work well in some situations, especially where the rental income covers a meaningful part of the weekly fee.

However, renting is not simple. It may not cover the full care cost, and it brings responsibilities.

Before renting out the house, consider:

• whether the person has mental capacity to agree;
• whether someone has property and financial affairs power of attorney;
• landlord legal responsibilities;
• repairs and maintenance;
• insurance;
• tax on rental income;
• letting agent fees;
• empty periods between tenants;
• whether rental income affects the financial assessment;
• whether the property is suitable to rent;
• whether family members agree.

Renting the home may reduce how quickly savings fall, but it may not avoid the need to sell later.

Can family members live in the house and pay rent?

Sometimes family members want to stay in the house and pay rent to help with care fees. This may be possible, but it should be handled carefully and transparently.

Questions to consider include:

• Is the rent set at a fair market level?
• Is there a proper tenancy agreement?
• Who has authority to agree the arrangement?
• Will the local authority accept the arrangement?
• Could it be seen as depriving the resident of income?
• Are tax and insurance issues being handled properly?
• What happens if the property later needs to be sold?

If the rent is below market value or the arrangement benefits family more than the resident, the council may question it. Attorneys and deputies must act in the person’s best interests.

Can you use savings instead of selling the house?

Yes, if the person has enough savings or income to pay care home fees, they may choose to use those before selling property. However, care fees can be very high, so savings can reduce quickly.

If savings are likely to fall towards the upper capital limit, contact the local authority early. Do not wait until the money has run out. The council may need time to carry out a care needs assessment and financial assessment.

Read our guide to what happens when money runs out in a care home for more detail.

Can family members pay care fees to avoid selling the house?

Family members can choose to help pay care home fees, but they should be very careful before making long-term promises. Care home fees can continue for years and increase over time.

Before agreeing to pay, ask:

• Am I paying voluntarily?
• Am I signing a contract or guarantee?
• Could I become liable for unpaid fees?
• How long might payments continue?
• Can fees increase?
• What happens if I can no longer pay?
• Am I protecting the resident’s interests or family inheritance?
• Could this affect my own home, retirement or family finances?

Family help may be generous, but it should not be agreed under pressure. Be especially careful before signing as a guarantor or agreeing to a care home top-up fee.

Can you transfer the house to family to avoid care fees?

This is one of the most common questions families ask, and it is one of the riskiest areas. Giving away a house to avoid care home fees can be treated as deprivation of assets.

If the local authority believes the person deliberately gave away property or money to reduce care charges, it may still treat them as owning the asset. This means transferring the house may not work, and it may create legal and family problems.

Examples that may raise concerns include:

• transferring the house to children after care needs are known;
• selling the house to a relative for less than market value;
• giving away large sums of money shortly before entering care;
• moving savings into someone else’s account;
• creating arrangements mainly to avoid care fees.

Not every gift is deprivation. People can make ordinary gifts and manage their money. But if avoiding care fees is a significant reason, the council may investigate.

Do not transfer property without specialist advice.

What is deprivation of assets?

Deprivation of assets means deliberately reducing your assets so they are not included in a care funding assessment. This can include giving away money, transferring property, selling assets cheaply, or spending unusually large amounts when care needs are foreseeable.

If the council decides deprivation has happened, it may treat the person as still owning the asset. This is sometimes called notional capital.

The council may look at:

• when the asset was given away;
• whether care needs were foreseeable at the time;
• the person’s age and health;
• why the gift or transfer was made;
• whether avoiding care fees was a significant motive;
• whether the transaction was at market value;
• whether the person retained any benefit from the asset.

Because this area can be disputed, keep records and get advice before making major gifts or transfers.

Can you put the house in a trust to avoid care fees?

Some families consider putting a house into a trust to protect it from care home fees. This is complex and should not be done without specialist legal advice.

A trust does not automatically protect a property from care fees. If the council believes the trust was created to avoid care charges, it may still investigate deprivation of assets. Trusts can also affect tax, inheritance, control of the property, family disputes and access to funds.

Be cautious of anyone who promises that a trust will definitely protect your home from care fees. The rules depend on timing, motive, circumstances and legal details.

Can equity release help pay for care?

Equity release may be considered by some homeowners, but it is usually more relevant when someone continues living in their home. If the person has moved permanently into a care home, many equity release products may not be suitable or available.

If equity release is being considered, get regulated financial advice. It can affect inheritance, benefits, tax, future housing choices and long-term financial security.

Could NHS Continuing Healthcare mean the house does not need to be used?

Yes, in some cases. NHS Continuing Healthcare, often called CHC, is a package of care arranged and funded by the NHS for adults with significant ongoing health needs. It is not means-tested, so savings and property are not the deciding factors.

If someone qualifies for NHS Continuing Healthcare, the NHS may fund the full care package, including care in a care home. This may mean the person does not have to use their house to pay for that care.

CHC may be relevant where needs are complex, intense, unpredictable or primarily health-related. It can apply to some people with advanced dementia, severe mobility problems, complex nursing needs, rapidly deteriorating health, end-of-life needs or multiple serious conditions.

You can read our guide to NHS Continuing Healthcare. The NHS also provides information about NHS Continuing Healthcare.

What about NHS-funded nursing care?

NHS-funded nursing care is different from NHS Continuing Healthcare. It is a contribution paid by the NHS directly to a nursing home when someone has been assessed as needing care from a registered nurse but does not qualify for full CHC.

It does not usually cover the full care home fee, so the person may still need to pay care costs. But if someone is in a nursing home, it is worth asking whether NHS-funded nursing care has been considered.

Can moving to a cheaper care home avoid selling?

Sometimes moving to a less expensive care home may reduce the need to sell a property quickly. But it should not be decided on cost alone.

Before moving to a cheaper home, consider:

• can the new home meet the person’s needs?
• does it provide dementia or nursing care if needed?
• will family still be able to visit?
• would the person be distressed by moving?
• what does the latest inspection report say?
• are fees likely to rise?
• what are the contract terms?

For someone with dementia, advanced frailty or strong attachments to staff and routine, moving home purely to reduce costs may be harmful. The local authority should consider wellbeing if it is involved in decisions.

Can downsizing help pay for care?

If someone is still living at home and planning ahead, downsizing may release money to pay for future care, adaptations, home care or support. But if someone has already moved into a care home, selling and buying a smaller property may not be practical unless there is a clear reason.

Downsizing may be relevant if:

• the person may return home;
• a spouse or partner needs more suitable housing;
• the current property is too expensive to maintain;
• the family wants to release funds while keeping a home base;
• there is a clear best interests reason.

If the person lacks mental capacity, attorneys or deputies must be careful to act in the person’s best interests.

What if the property is jointly owned?

Joint ownership can make the financial assessment more complex. The council may look at the person’s beneficial share of the property, but the value of that share may depend on whether anyone else owns part of the home, whether anyone lives there, and how easy it would be to sell the share.

Ask the council:

• How are you valuing the person’s share?
• Have you considered joint ownership?
• Have you considered who lives in the property?
• Have you considered whether the share could realistically be sold?
• Can you explain the valuation in writing?

If a jointly owned property is being assessed, legal advice may be useful.

What if there is still a mortgage?

If there is a mortgage on the property, this should be considered when looking at the value of the person’s equity. The gross value of the home is not the same as the amount available after mortgage debt, sale costs and other obligations.

Ask:

• How much equity is in the property?
• Who is responsible for mortgage payments?
• Can payments continue if the person is in care?
• Would renting cover the mortgage and care contribution?
• What happens if the property must be sold?

Mortgage, insurance and lender rules should be checked before renting or leaving a property empty.

What if the house is empty?

An empty property can create practical and financial problems. Insurance may change, council tax rules may apply, maintenance may be needed, and the property may deteriorate if left unattended.

If the resident has moved into care and the house is empty, consider:

• insurance requirements for empty homes;
• security;
• heating and damp prevention;
• garden maintenance;
• council tax;
• utility bills;
• repairs;
• whether renting is possible;
• whether a deferred payment agreement is suitable;
• whether selling may eventually be necessary.

Attorneys and deputies should keep clear records of costs paid from the resident’s funds.

What if the person lacks mental capacity?

If the person cannot make decisions about property, care or finances, legal authority is essential.

Check whether there is:

• a Lasting Power of Attorney for property and financial affairs;
• a registered Enduring Power of Attorney;
• a Court of Protection deputy;
• a need to apply to the Court of Protection;
• a separate health and welfare attorney for care decisions.

A family member cannot automatically sell, rent or transfer someone else’s house just because they are next of kin. They need proper legal authority.

If the person lacks capacity and there is no attorney or deputy, get advice before making property decisions.

What should attorneys consider before selling a house?

If you are acting as attorney or deputy, you must act in the person’s best interests. This means thinking about the resident’s needs, wishes, finances, care stability and overall wellbeing.

Before selling, consider:

• does the person need the property to be kept?
• is there any realistic chance of returning home?
• would selling improve financial security?
• is a deferred payment agreement better?
• could renting be suitable?
• what are the tax and legal consequences?
• what did the person previously say they wanted?
• are family members disagreeing?
• is the sale price fair?
• are records being kept properly?

The attorney’s job is not to protect inheritance. It is to act for the person who owns the property.

Can selling the house affect benefits or tax?

Yes. Selling a property may affect savings, investment income, tax, benefits and financial assessments. It may also affect inheritance planning and how care fees are paid.

Possible issues include:

• capital gains tax in some cases;
• income tax on rental income if rented instead;
• loss of certain benefits depending on circumstances;
• impact on financial assessment;
• inheritance tax planning;
• investment decisions after sale.

For complex situations, speak to a regulated financial adviser or tax adviser with experience in later-life care funding.

What should you ask the local authority?

If property is involved in care funding, ask the council clear questions and request written answers.

• Will the property be included in the financial assessment?
• If yes, why?
• Does any mandatory disregard apply?
• Will you consider a discretionary disregard?
• Does the 12-week property disregard apply?
• What happens after the 12 weeks?
• Is a deferred payment agreement available?
• What fees and interest apply?
• Can the property be rented out?
• What happens if the property does not sell quickly?
• What happens if the person’s money runs out before the assessment is complete?
• Can you explain the decision in writing?

What should you ask the care home?

The care home contract may affect whether selling or delaying sale is realistic.

Ask the care home:

• What is the exact weekly fee?
• What is included?
• What costs extra?
• How often do fees increase?
• What happens if fees become unaffordable?
• Do you accept local authority-funded residents?
• Would a top-up fee be needed?
• What is the notice period?
• What happens during hospital stays?
• What happens after death?
• Is anyone being asked to sign as guarantor?

Before agreeing to a placement, read our guide to care home contracts and what to check before signing.

Ways you may avoid selling the house immediately

Depending on the circumstances, possible options may include:

• using savings or income temporarily;
• checking whether the property is disregarded;
• using the 12-week property disregard;
• applying for a deferred payment agreement;
• renting out the property;
• checking eligibility for NHS Continuing Healthcare;
• checking eligibility for NHS-funded nursing care;
• considering whether home care or live-in care is still suitable;
• getting financial advice on care fee planning.

Some of these options delay a sale rather than avoid it permanently. Others may mean the property is not counted at all. The right option depends on the person’s needs, finances, family situation and legal authority.

Options that are risky or often misunderstood

Be careful with:

• giving the house to children after care needs are known;
• selling the house below market value;
• putting the house into a trust mainly to avoid fees;
• signing as guarantor without understanding liability;
• agreeing to unaffordable top-up fees;
• renting to relatives at below-market rent;
• assuming the council will ignore the property without written confirmation;
• assuming NHS funding applies without assessment;
• waiting until money runs out before contacting the council.

When should you get advice?

Consider getting advice if:

• the person owns a home and may need permanent care;
• the home is jointly owned;
• someone else lives in the property;
• a deferred payment agreement is being considered;
• the family is considering selling or renting;
• there is no power of attorney;
• the person lacks mental capacity;
• family members disagree;
• the council refuses to disregard the property;
• the council alleges deprivation of assets;
• a care home contract asks for a guarantor;
• large top-up fees are being requested.

Useful sources of support may include Age UK, Citizens Advice, a solicitor experienced in community care law, a regulated financial adviser specialising in later-life care funding, or the local authority adult social care team.

Final thoughts

You cannot always avoid using property to pay for care, but you may be able to avoid selling the house immediately. In some cases, the home is disregarded because a spouse, partner or qualifying relative still lives there. In other cases, the 12-week property disregard or a deferred payment agreement may give the family time and flexibility. Renting out the property may also help, though it brings responsibilities and may not cover the full cost.

What you should not do is give away or transfer a house simply to avoid care fees without advice. If the local authority sees this as deprivation of assets, it may still treat the person as owning the property.

The safest approach is to get a care needs assessment, understand the financial assessment, ask whether any property disregard applies, check whether NHS funding may be relevant, and read the care home contract carefully before signing anything.

Selling a home to pay for care is a major decision. It should be made with proper information, not panic.

For related guidance, read our articles on care home contracts, self-funding a care home, care home top-up fees and what happens when money runs out in a care home.

Frequently asked questions

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

Not always. If you receive care at home, your main home is usually not counted in the same way as it may be for permanent care home care. If you move permanently into a care home, the property may be included in the financial assessment unless a disregard applies or a deferred payment agreement is used.

When is a house included in care home fees?

A house may be included if someone moves permanently into a care home and owns property that is not disregarded. If the value of the property takes them above the capital limit, they may be expected to pay for their own care.

When is a house disregarded for care fees?

A house may be disregarded if a spouse, civil partner, partner, dependent child, disabled relative or qualifying older relative still lives there. The rules are detailed, so ask the local authority for written confirmation.

What is the 12-week property disregard?

The 12-week property disregard may apply when someone first moves permanently into a care home and their property would otherwise be counted. The local authority may ignore the property value for the first 12 weeks, giving time to plan.

What is a deferred payment agreement?

A deferred payment agreement is an arrangement with the local authority where care home fees are paid or partly paid by the council and repaid later, usually when the property is sold or after death. It is normally secured against the home and may include interest and fees.

Does a deferred payment agreement mean care is free?

No. It usually means payment is delayed. The debt builds up and is repaid later from the property or estate. Interest and administration charges may apply.

Can I rent out my house instead of selling it?

Possibly. Renting may help pay care fees, but it brings landlord responsibilities, tax, insurance, repairs and possible gaps between tenants. Rental income may also be considered in the financial assessment.

Can I give my house to my children to avoid care fees?

This is risky. If the local authority believes the house was transferred to avoid care charges, it may treat the person as still owning it. This is called deprivation of assets. Get specialist advice before transferring property.

Can I put my house in a trust to avoid care home fees?

A trust does not automatically protect a home from care fees. If avoiding care fees is a significant reason for creating the trust, the council may investigate deprivation of assets. Specialist legal advice is essential.

What if my spouse still lives in the house?

If a spouse or civil partner still lives in the home, the property is normally disregarded in the financial assessment. This means it should not usually have to be sold to pay for the other spouse’s care while they continue living there.

What if my adult child lives in the house?

It depends on the adult child’s circumstances. A property may be disregarded if a qualifying relative lives there, such as a disabled relative or a relative aged 60 or over. In other cases, the council may have discretion, but it is not automatic.

Can NHS Continuing Healthcare prevent the house being used for care fees?

If someone qualifies for NHS Continuing Healthcare, the NHS may fund the full care package, including care in a care home. Eligibility is based on health needs, not property or savings.

What if the person lacks capacity to sell the house?

Someone must have legal authority to make property decisions. This may be through a Lasting Power of Attorney, Enduring Power of Attorney or Court of Protection deputyship. Being next of kin is not enough on its own.

Should I sell the house before asking the council?

Not necessarily. It is usually better to understand the care needs assessment, financial assessment, property disregards, deferred payment options and NHS funding possibilities before selling. Get advice if unsure.

Where can I get help about property and care fees?

You can contact your local authority adult social care team, Age UK, Citizens Advice, a solicitor experienced in community care law, or a regulated financial adviser specialising in later-life care funding.