When a parent moves into a care home, the family home suddenly falls quiet. Their chair, their photos, the smell of the kitchen, all waiting in an empty house. Alongside the emotion comes a hard practical question: what happens to the home, and does it have to be sold to pay for care? Here's how it works in England.
This guide is general information, not legal or tax advice. Take advice on your own situation.
What could your home earn?
Free and instant. Nobody rings you unless you ask them to.
Key takeaways
- The home doesn't always have to be sold straight away to pay for care.
- The 12-week property disregard gives families time to decide.
- A deferred payment agreement can delay a sale, with the council repaid later.
- The home may be ignored if a partner or certain relatives still live there.
- Tell the insurer as soon as the home is empty.
Contents
Does the home have to be sold to pay for care?
Not straight away, and not always. If the council is helping to pay for care, it carries out a financial assessment. The home is usually counted once a person moves into care permanently, but there are rules that give families time, and ways to avoid a rushed sale.
What is the 12-week property disregard?
A breathing space. Leicestershire County Council explains that the value of your former main home will not be taken into account in your financial assessment during the first 12 weeks of your permanent stay in a care home. This is designed to give families time to decide what to do. It applies where your other savings are below the council's threshold, and it ends early if the home is sold during those 12 weeks.
What is a deferred payment agreement?
A way to pay for care without selling the home straight away. Derby City Council explains that under a deferred payment agreement, the council pays towards the care, and you will need to pay the Deferred Payment back to the Council at some point in the future, usually when the home is eventually sold. Interest and admin charges can apply, so ask your council for the full terms.
What if someone else still lives in the home?
The home may be ignored in the assessment altogether in some cases, for example if a partner, or an older or disabled relative, still lives there. Ask the council how the rules apply to your family.
What are the options for the home?
- Sell it, using the proceeds to pay for care.
- Keep it, with a deferred payment agreement, and sell later.
- Let it on a tenancy, using the rent towards care costs, though a tenancy makes a later sale harder.
- Let it on short stays, so the home earns money but stays flexible for a sale or for family use.
Whoever makes decisions, the owner or someone with power of attorney, should agree the plan with the family and the council.
What about insurance on the empty home?
Tell the insurer as soon as the home is empty. Confused.com lists going into long-term care as a common reason families need specialist cover, because most standard policies state the home must not be unoccupied for 30 days or more.
Frequently asked questions
Do I have to sell my house to go into a care home?
Not always. The 12-week disregard and deferred payment agreements can give you time.
What is the 12-week property disregard?
For the first 12 weeks of a permanent care home stay, the council ignores the value of the former home, if other savings are below the threshold.
What is a deferred payment agreement?
The council pays towards care, and is repaid later, usually when the home is sold.
Can we rent out Mum's house to pay for care?
Often, yes, if the person with legal authority agrees. Short stays keep the option to sell later.
Is the house still insured once it's empty?
Tell the insurer. Standard cover often restricts after about 30 days empty.
Related guides
Sources
This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.