One of the biggest concerns families have when an elderly relative moves into a nursing home is whether the family home will have to be sold to pay for care. Nursing home care in the UK can be expensive, and many people worry about losing their home in order to cover the cost of long-term care. The answer is not always simple. In some cases, the value of the house is included in the financial assessment used to calculate who pays for the nursing home. In other situations, the house may not be counted, and there are also schemes that allow payment to be delayed.
Is your house included in the financial assessment?
When someone moves permanently into a nursing home in the UK, the local council will usually carry out a financial assessment to determine who should pay for care. This assessment looks at income, savings and assets, which may include property.
In many cases, the value of the home is included in the financial assessment. If the total value of assets is above the financial threshold, the person may be expected to pay for their own care.
However, this does not automatically mean the house must be sold immediately. There are several situations where the property may not be counted or where payment can be delayed.
When is the house not included in the financial assessment?
There are situations where the house may not be included in the financial assessment. For example, the property is usually not counted if one of the following people still lives in the home:
- A spouse or partner
- A close relative over a certain age
- A dependent relative
- In some cases, a carer
In these situations, the house may be ignored in the financial assessment, which means the person may qualify for local council funding without needing to sell the home.
Because the rules can be complex, families are encouraged to contact their local council to understand their specific situation.
Do you have to sell your house immediately?
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No, the house does not always have to be sold immediately when someone moves into a nursing home. In some cases, the person may use savings and income first to pay for care.
If the person owns a property but does not want to sell it immediately, there may be other options available, such as deferred payment agreements.
What is a deferred payment agreement?
A deferred payment agreement is a scheme that allows people to delay paying for their nursing home care by using the value of their home.
Under this scheme:
- The local council helps pay for the nursing home
- The money is repaid later
- Repayment usually happens when the property is sold
This means the house does not need to be sold immediately, and the person can move into a nursing home while keeping ownership of their home.
How deferred payment agreements work
| Step | What Happens |
|---|---|
| Financial assessment | Council assesses income, savings and property |
| Deferred payment agreement | Council agrees to pay care costs temporarily |
| Care home fees paid | Council pays part of the nursing home fees |
| Debt accumulates | Fees are repaid later |
| Property sold | Money repaid to council |
Deferred payment agreements can be helpful for families who do not want to sell the home immediately.
Can you rent out the house instead of selling it?
Some families choose to rent out the property to generate income that can be used to help pay for nursing home fees. This can be an alternative to selling the property immediately.
However, rental income may be included in the financial assessment and may affect eligibility for local council funding.
Families should seek financial advice before making decisions about renting out property.
What happens to the house if both parents move into a nursing home?
If both partners move into a nursing home, the property is more likely to be included in the financial assessment. In this situation, the property may be used to help pay for care.
Again, deferred payment schemes may be available to avoid selling the property immediately.
How much does a nursing home cost compared to the value of a house?
Many families try to estimate how long a person can stay in a nursing home before their savings or property value is used up.
| Estimated Weekly Cost | Estimated Yearly Cost | 5-Year Cost |
|---|---|---|
| £1,200 per week | £62,400 per year | £312,000 |
| £1,400 per week | £72,800 per year | £364,000 |
| £1,600 per week | £83,200 per year | £416,000 |
This shows why financial planning is important when considering long-term care.
What happens if you refuse to sell the house?
If a person refuses to sell their house but still needs to pay for a nursing home, they may need to use savings, income or a deferred payment agreement.
If the person qualifies for council funding, the council may help pay for care, but this depends on the financial assessment.
How to plan ahead to protect your home
Planning ahead can help families understand their options and avoid emergency decisions.
Families should:
- Understand nursing home costs
- Understand financial assessment rules
- Check eligibility for council funding
- Check eligibility for NHS Continuing Healthcare
- Ask about deferred payment schemes
- Seek financial advice
Planning early gives families more options and more control over decisions.
FAQ – Do You Have to Sell Your House to Pay for a Nursing Home?
Do you always have to sell your house to pay for a nursing home?
No, not always. It depends on who still lives in the property and the results of the financial assessment.
Is the house included in the financial assessment?
In many cases yes, but there are exceptions if certain relatives still live in the property.
What is a deferred payment agreement?
It is a scheme where the council helps pay for care and the cost is repaid later, usually when the house is sold.
Can I keep my house if I go into a nursing home?
In some cases yes, especially if a spouse or dependent relative still lives in the property.
Can I rent out my house to pay for care?
Some families rent out the property to generate income, but this may affect funding eligibility.
What happens if both parents go into a nursing home?
The property may be included in the financial assessment, and it may be used to help pay for care.
How much does a nursing home cost per year?
Nursing home care typically costs between £60,000 and £80,000 per year in the UK.
Can the council force you to sell your house?
The council does not usually force an immediate sale, but the value of the property may be used in the financial assessment.
What happens to the house after death?
This depends on ownership, estate planning and whether a deferred payment agreement was used.
When should you seek financial advice?
It is recommended to seek advice as soon as long-term care is being considered.
Looking for a nursing home and trying to understand the costs?
Understanding how nursing home fees work, whether a house must be sold and what funding options are available can be complex. Comparing different nursing homes and understanding the financial process can help families make informed decisions.
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