Selling a house to pay for care home fees: what you need to know

When someone moves permanently into a care home, the question of whether their home has to be sold comes up quickly. The answer is often “not straight away” — and sometimes not at all. This guide covers the rules in England, with a short note on Wales.

When the home counts towards care costs

In England, the council carries out a financial assessment. For 2026/27, anyone with more than £23,250 in capital generally pays the full cost of their care. Between £14,250 and £23,250 they contribute on a sliding scale, and below £14,250 capital isn’t counted (though income still is). These limits have been frozen since 2010.

The planned £86,000 lifetime cap on care costs was cancelled in July 2024, so there is currently no cap in England.

When the home is NOT counted

The home is ignored in the financial assessment if it’s still lived in by:

• a husband, wife or civil partner
• a relative aged 60 or over
• a relative who is incapacitated
• a child under 18 whom the person is liable to maintain

Councils can also choose to disregard the home in other situations, such as when a long-term carer lives there.

The 12-week property disregard

Even when the home does count, it’s ignored for the first 12 weeks of a permanent care home stay. That gives the family time to decide what to do without an immediate bill based on the property’s value.

Deferred payment agreements

A deferred payment agreement lets the council pay some of the care fees and recover them later — usually when the home is sold, or from the estate. It can mean the house doesn’t need to be sold in a hurry, or at all during the person’s lifetime.

To qualify, the person generally needs less than £23,250 in capital other than the home. Councils can charge interest and set-up fees. For example, Liverpool City Council charged 4.65% interest from 1 July 2026, with a £450 set-up fee and a £144 annual fee. Check the current terms with your own council — rates are reviewed twice a year.

Giving the home away

Transferring the home to family to avoid care fees rarely works. If the council decides assets were given away deliberately to reduce care costs, it can treat the person as still owning them (“deprivation of assets”).

If the home does need to be sold

• Check who can legally sell it — usually the owner, or someone with a registered Lasting Power of Attorney for property and financial affairs, or a deputy appointed by the Court of Protection.
• Consider whether a deferred payment agreement would take the time pressure off.
• An empty home needs insuring properly — standard policies often have limits once a property is unoccupied.
• Compare routes: an estate agent will usually achieve a higher price; a direct sale gives a fixed date and no viewings.

Our guides to selling a vacant property and every way to sell quickly cover the practical side.

Wales

Wales has different rules, including a single capital limit of £50,000 for residential care. See the Welsh Government’s guidance on charging for social care.

Practicalities while the house is empty

• Council tax: a home left empty because the owner has moved permanently into a care home may be exempt. Check with the council — rules and evidence requirements vary.
• Insurance: tell the insurer the property is unoccupied. Many policies have conditions such as regular inspections or draining the water system.
• Security and upkeep: keep the heating on low in winter to avoid frozen pipes, and arrange for someone to check the property regularly.
• Belongings: decide early what the family wants to keep. Clearing a lifetime’s possessions often takes longer than the sale itself.

Paying fees while the home is being sold

If the home is being sold but hasn’t yet completed, a deferred payment agreement can cover fees in the meantime. If you arrange care privately, fees may need to be paid from savings until the sale completes. Ask the care home and the council what happens if a payment is due before the proceeds arrive — it’s much easier to agree this in advance.

Top-up fees

If the council is funding care but the family chooses a home that costs more than the council will pay, someone — usually a relative — may be asked to pay a “top-up”. Make sure any top-up agreement is in writing and affordable over the long term.