Do I Have to Sell My House to Pay for a Care Home?
It’s the question almost every family asks first. The honest answer is: sometimes, but rarely straight away, and in some cases never. Here’s how the rules on your home actually work in England in 2026, and the options that give you time.
It’s usually the first question families ask, and often the one they’re most afraid to say out loud. Mum or Dad needs a care home, the savings won’t stretch far, and the house is the one thing of real value. Will you have to sell the house to pay for care?
The honest answer is: sometimes, but rarely straight away, and in some situations never. The rules are more forgiving than most people expect, and there are options designed specifically to stop families being forced into a rushed sale at the worst possible moment. Here’s how it actually works in England in 2026.
The short answer: in England, you won’t have to sell your house to pay for care if you’re getting care at home, if the stay is temporary, or if a partner or certain relatives still live there. For a permanent move, the council ignores the house for the first 12 weeks, and a Deferred Payment Agreement lets you pay care home fees later from the house rather than selling it straight away.
When Your Home Counts, and When It Doesn’t
If the local authority is involved in arranging or funding care, it will carry out a financial assessment (the “means test”). For 2026/27 the national thresholds are:
Over £23,250 in capital: you pay the full cost of your care yourself (you’re a “self-funder”).
Between £14,250 and £23,250: the council contributes, and you pay something from your capital too.
Under £14,250: your capital is ignored and you contribute from income only.
Whether your home is included in that capital depends on two things: the type of care, and who still lives there.
Care at home. If you’re receiving care in your own home, the value of the house is never counted. The question only arises when someone moves into a care home permanently.
Temporary or respite stays. If the stay is temporary, including respite care, your home is ignored as long as you intend to return to it.
Someone else still lives there. For a permanent move, the home is ignored for as long as it’s still lived in by:
your husband, wife or partner
a relative aged 60 or over
a relative under 60 who is incapacitated (for example, receiving certain disability benefits)
a child of yours under 18
a former partner who is a lone parent
This is called the mandatory property disregard, and it isn’t time-limited. If your spouse is still living in the family home, it does not have to be sold to pay for your care. Councils also have discretion to ignore the home in other circumstances, for example where a carer has given up their own home to look after you.
The 12-Week Property Disregard
If none of those situations apply and the home will be counted, you still don’t have to sell immediately.
When someone moves permanently into a care home and their other savings and assets (excluding the house) are below £23,250, the council ignores the value of the property for the first 12 weeks. During that time the council helps fund the placement, and you contribute from your income and other savings as normal.
Those 12 weeks are designed to give families breathing space: time to grieve the move, think clearly and decide what to do with the property, rather than putting a sign up the week Mum moves in. It also applies again if the home suddenly becomes countable later, for example after a spouse who lived there passes away.
Deferred Payment Agreements: Paying Later, Not Now
After the 12 weeks, if the house is counted and takes you over £23,250, you’ll be expected to pay the full cost of care. But you still may not need to sell the house to pay for care straight away.
A Deferred Payment Agreement (DPA) is essentially a loan from the council, secured against your home. The council pays the care home fees and the debt is repaid later, usually when the property is sold, or from your estate after death.
Every council in England must offer a DPA if you:
are moving into a care home permanently
have less than £23,250 in savings and other assets, not counting the home
have your home counted in the financial assessment
can agree to the council placing a legal charge on the property
A few things worth knowing:
Interest and fees apply. Interest is capped at a national maximum linked to government borrowing (gilt) rates and reviewed every six months. Councils can also charge for set-up, valuations and ongoing administration, so ask for a full breakdown.
There’s a limit on how much you can borrow, usually your share of the property’s value minus 10% and minus £14,250.
You can still rent the house out. Many families do this to cover part of the fees and reduce the amount that builds up as debt. Rental income will count towards your contribution.
Repayment is due when the house is sold, or within 90 days of death, though councils can be flexible while an estate is being settled.
For families who want to keep the home in the short term, perhaps because a relative hopes to buy it, or because selling in a hurry would mean accepting a low price, a DPA can be the difference between a calm decision and a forced one.
Can I Just Give the House Away?
This is the question many people quietly wonder about. The short answer: be very careful.
If you give away the home (or money, or other assets) and the council decides the main reason was to avoid paying for care, it can treat you as still owning it. This is called deprivation of assets. There’s no fixed time limit (the “seven-year rule” people often mention applies to inheritance tax, not care fees). The council looks at your intentions and at whether care was reasonably foreseeable when the gift was made.
Transferring the house to children shortly before, or around the time, care is needed is exactly the kind of decision that gets challenged. If you’re thinking about long-term planning, speak to a solicitor or a regulated financial adviser who specialises in later-life care before doing anything. Age UK’s factsheet on deprivation of assets is a useful starting point.
Before You Sell the House to Pay for Care
If the house does need to go eventually, a few things are worth checking first:
Has NHS Continuing Healthcare been considered? If the person qualifies, the NHS pays the full cost of care and the house doesn’t come into it at all. Our guide on NHS Continuing Healthcare explains who qualifies.
Is a Lasting Power of Attorney in place? If your loved one can no longer make decisions and there’s no Property and Financial Affairs LPA, nobody can legally sell or rent the house on their behalf without applying to the Court of Protection, which can take months. See our guide on Power of Attorney before a care home.
Do you know the real cost? Fees vary enormously by area and type of care. Our care home cost calculator gives a quick estimate of what you could be paying each week.
Are you claiming everything you’re entitled to? Attendance Allowance, for example, is not means-tested and can still be paid to self-funders in a care home.
FAQs
Will I have to sell my house if my husband or wife still lives in it? No. If your spouse or partner continues to live in the home, its value is ignored in the financial assessment for as long as they live there.
Is my house counted if I get care at home? No. The value of the home you live in is never included when you’re receiving care in your own home.
What is the 12-week property disregard? When you move permanently into a care home and your other savings are under £23,250, the council ignores the value of your home for the first 12 weeks, giving you time to decide what to do with it.
What happens to a house that’s jointly owned? Only your share of the property is assessed. Where the other owner still lives there, the value of your share can be very low or, in many cases, the home is disregarded entirely. It’s worth getting advice, as this is an area councils sometimes get wrong.
Are the rules the same across the UK? No. This guide covers England. Scotland, Wales and Northern Ireland have their own capital limits and rules, so check with your local council if you live outside England.
Legal disclaimer: This article is for general guidance only and does not constitute financial or legal advice. Rules, thresholds and council policies can change and vary by area. Always check current guidance with your local authority, and speak to a qualified solicitor or regulated financial adviser before making decisions about property or assets.
As the Company Director at Wiserr, I lead an innovative and impactful platform that provides information and advice on care and health services in local areas. We empower informed decisions and enhance the quality of life for thousands of users, and we are featured in over 3000 GP practices across the UK.
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