Do I Have to Sell My House to Pay for Care?

No, not immediately, and in many cases not at all. Your home is only counted towards care home costs if nobody who qualifies for a disregard, such as a spouse or a dependent relative, is still living in it. Even then, you have at least 12 weeks before any sale needs to happen, and after that there’s usually the option of a deferred payment agreement, which lets the local authority cover your fees while a legal charge sits against the property instead.

“This is the question that keeps families awake at night, and it’s usually more complicated, and less alarming, than they’ve been led to believe. We always encourage families to get the full financial assessment done properly before anyone makes a decision about the house.” – Manjas Lidder, Lidder Care

What Happens at Each Capital Level

Local authorities in England use two capital thresholds to decide how much help you get with care home fees, based on the 2026/27 rates:

Your capital	What it means	Is the house included?
Below £14,250	Capital is ignored; you contribute from income only	Only if no disregard applies, and typically after the 12-week period
£14,250 to £23,250	You pay a weekly “tariff income” of £1 for every £250 (or part) between the two limits, plus a contribution from income	Same as above
Above £23,250	You’re classed as a self-funder and pay the full cost of care	Same as above

These figures apply in England and are reviewed annually by the Department of Health and Social Care, so it’s worth double-checking the current thresholds before making any final decisions.

Does My House Count Towards the Means Test?

It depends entirely on who else lives there. Your home is fully disregarded, meaning it isn’t counted as capital at all, if any of the following are still living in it as their main home:

• Your spouse, civil partner or unmarried partner
• A relative aged 60 or over
• A relative who is incapacitated or disabled
• A dependent child under 16 that you’re liable to maintain

If none of these apply, which is typically the case when a single homeowner moves permanently into a care home, the property will eventually be counted as capital. But that doesn’t happen straight away.

The 12-Week Property Disregard

When someone first moves into permanent care and their property would otherwise count towards the means test, the local authority must ignore its value for the first 12 weeks. During this period:

• The council treats you as though you own no property at all
• Your contribution is based on income only, not the value of your home
• This gives families breathing space to arrange a sale, a tenancy, or a longer-term financial plan without being rushed

Many families either don’t know this disregard exists or don’t realise they need to ask for it formally. It’s worth confirming with the council in writing that the disregard has been applied to your case.

What Happens After the 12 Weeks?

Once the 12-week period ends, there are generally two paths:

1. Sell the property and use the proceeds towards care costs, with the local authority topping up fees according to your means-tested contribution.
2. Apply for a deferred payment agreement, which allows you to keep the property while the council pays towards your fees.

Deferred Payment Agreement: An Alternative to Selling

A deferred payment agreement is essentially a loan from the local authority, secured against your home with a legal charge. Instead of selling straight away, you can defer paying some or all of your care fees until a later date, most commonly when the property is eventually sold, often after the person has passed away.

Interest is usually charged on the amount owed, and the rate is set and reviewed periodically by the Department of Health and Social Care, so it’s important to check the current rate with your local authority before agreeing to anything. Our guide to deferred payment agreements covers the process in more detail.

What About Top-Up Fees?

If a family chooses a care home that costs more than the local authority’s standard rate, someone, usually a relative, needs to agree to pay the difference as a top-up fee. This is a separate arrangement from the means test itself and is worth understanding before you commit to a particular home. We’ve covered this in full in our guide to care home top-up fees.

Council Tax and Other Considerations

Moving into a care home can also affect other household bills, including council tax on the property left behind. Our article on council tax when you move into a care home explains what typically changes and what exemptions might apply.

Getting the Full Picture

Because every family’s situation is different, depending on who else lives in the property, how much other capital is involved, and which local authority area you’re in, it’s always worth getting a full financial assessment before deciding anything about the house. Our Nottinghamshire care funding guide brings together all our funding content in one place if you’d like a fuller picture before you start.

Frequently Asked Questions

Will the council force me to sell my parent’s house? No. The council can’t force a sale. If the value of the house would otherwise count towards fees, you have the 12-week disregard and then the option of a deferred payment agreement, which avoids a forced sale during the person’s lifetime.

What if my elderly parent’s partner is still living in the house? The property is fully disregarded for as long as the qualifying partner, relative, or dependent continues to live there as their main home. It only becomes assessable capital once they move out or pass away.

How long can I delay selling the house? There’s no fixed limit if you enter a deferred payment agreement. The debt is typically repaid when the property is eventually sold, which is often after the person has died.

Can I rent out the house instead of selling it? This is possible, but any rental income is usually treated as income for means-testing purposes, and the property itself may still count as capital depending on your circumstances. It’s worth discussing this option directly with your local authority’s financial assessment team.

How Lidder Care Can Help

Our team at Newgate Lodge Care Home and Lowmoor Nursing Home regularly helps families work through exactly this decision, and we’re always happy to point you towards the right funding conversation before you commit to anything. Get in touch with our team or call us on 01623 622 322 for a straightforward chat about your options.