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

And as with many things in life the answer is: it depends!

Why is everyone worried about this?

Well, here’s the thing. Care is expensive. Like, eye-wateringly expensive.

If you move into a care home, the local authority will do a financial assessment to work out how much you’ll need to pay towards your care and whether they’ll help at all.

They’ll look at:

• Your income (pensions, benefits, etc.)

• Your savings

• And the value of your home

• 
  

That’s where the worry comes in.

The £23,250 threshold

As of now (2025), if you have more than £23,250 in assets (including your property), you’ll likely have to pay for your own care in full. This is called self-funding.

Your house could be included in this assessment but only in some situations.

Will my home definitely be counted?

do I have to sell my home to pay care fees?

Not necessarily. It depends on whether anyone is still living there.

If one of the following people still lives in your home, your property is usually excluded from the financial assessment:

✅ Your spouse or civil partner

✅ A relative aged 60 or over

✅ A child under 18 you’re responsible for

✅ A disabled relative

✅ A former partner who is a lone parent

So if you’ve still got a loved one living at home, the local authority shouldn’t force a sale.

But if you live alone and move permanently into care, your house may well be subject to assessment.

Do I have to sell it right away?

No. There’s something called a Deferred Payment Agreement (DPA). Its like a loan from the local authority. Until very recently it used to be interest free but this is not longer the case. The local authority will charge interest and will often charge a fee for the privilege of setting up a DPA.

The local authority will cover your care costs upfront and recoup them later, usually from the sale of your home after you pass away. If, for any reason your home is sold before you die the local authority will expect repayment upon sale. You will then continue to pay for your care with the balance of money you have from the sale.

To make sure they get paid the local authority will secure the loan secured against your home. This gives your family time and space to process and make decisions.

Can I give my house away to avoid paying care?

The short answer is: no, not safely. Deliberately giving away your home (or other assets) to avoid care fees is seen as “deprivation of assets”. Councils can and do investigate.

If the local authority think you’ve deliberately given an asset away to get around the rules and avoid paying for care, they can still treat you as if you own the property and refuse to help with funding.

So please, don’t try the “just pop it in my daughter’s name” exercise without talking to someone who knows what they’re doing.

What can I do about care?

This is where you need to get proactive:-

Make a Will A clear, up-to-date will gives you control and helps protect your family.

Explore Property Trusts In certain cases, including a trust in your will can help protect your share of the home for your children or partner, especially in blended families or second marriages. These are very complicated things so please don't get taken in by a glossy brochure and glass of wine accompanied by promises to prevent you from paying care fees. There are lots of companies out there which really don't know what they are doing, and try to sell products which claim to do this. Don't be taken in!

Set up a Lasting Power of Attorney so someone you trust can make decisions if you can’t, including big ones about your finances and care.

Get personal advice No two families are the same, and care planning is not one-size-fits-all. You need to speak about your specific circumstances.

We know the idea of selling your home is emotional. It's not just bricks and mortar. It's your safe place, your history, your memories.

There are ways to plan. With clear advice and a bit of care, you can make informed decisions that protect your dignity, your family, and the life you’ve built.

At Argo we pride ourselves on dealing with the practical, the personal, and the emotional stuff to make these difficult conversations easier. It's what we do well!