Do I have to sell my house to pay for care?
One of the most common fears when a relative moves into a care home is having to sell the family home. This guide explains when that is and is not necessary.
You do not always have to sell your home to pay for care. The home is disregarded entirely if a spouse, partner or certain other relatives still live there. Even where it does count, England offers a 12-week property disregard at the start of a permanent stay, and a deferred payment agreement lets the council collect fees from the property later, usually after death, so the house need not be sold during your lifetime.
At a glance
- Home disregarded ifSpouse, partner or qualifying relative lives there
- 12-week disregardHome ignored for first 12 weeks of permanent care
- Alternative to sellingDeferred payment agreement
- Counts only forPermanent residential care, not nursing-at-home
- Upper capital limit23,250 pounds (England, 2025/26)
- Get adviceYour council, and an authorised adviser for funded options
When is your home counted?
Your home only comes into the means test if you move permanently into a care home and there is nobody left living there whom the rules protect. If a husband, wife, partner, a relative aged 60 or over, a disabled relative or a dependent child still lives in the property, its value is disregarded entirely and is not counted toward your fees. The home is also ignored while care is temporary rather than permanent.
This guide is for families and individuals. The figures are for England for 2025/26; the devolved nations have their own rules.
The 12-week property disregard
Even where your home does count, England gives you breathing space. For the first 12 weeks of a permanent stay in a care home, the value of your home is disregarded from the means test. This is meant to give families time to decide what to do, whether that is selling, renting out the property or arranging a deferred payment, without the pressure of an immediate fee bill against the house.
The 12-week property disregard can mean the council helps with your fees for that short period while your other capital is below the limit. It is not a guarantee of free care, and it does not apply to everyone. Ask your local authority whether it applies to your situation.
The deferred payment alternative
If your home does count and you would rather not sell it, a deferred payment agreement is the usual alternative. Under this council scheme, the council pays your care fees and recovers the money later from the value of your home, normally when the property is sold or after death. This lets you keep the home, perhaps to rent it out, while care is paid for. Interest and fees apply, and we cover the detail in our deferred payment agreement guide.
- Your home stays in your name and need not be sold during your lifetime
- The council places a legal charge and recovers fees later
- You can often rent the property out to help cover costs
- Interest accrues, so the debt grows over time
Other ways to fund care without selling
Selling is not the only option even for self-funders. Some families use equity release to unlock money from the home while keeping it, and some buy an immediate needs annuity to cap the fee bill. Both are regulated products with real risks and are not right for everyone.
Equity release and immediate needs annuities are regulated by the Financial Conduct Authority. We provide information only and can refer you to an FCA-authorised care-fees adviser. We do not give regulated advice, and you should take authorised advice before using either to fund care.
Do I have to sell my house to pay for care?: common questions
Do I have to sell my house to pay for care?
Not always. Your home is disregarded if a spouse, partner or certain relatives still live there. Even where it counts, the first 12 weeks of permanent care attract a property disregard, and a deferred payment agreement lets the council recover fees later so you need not sell during your lifetime.
Are the first 12 weeks in a care home free?
Not automatically. England offers a 12-week property disregard, which means your home's value is ignored in the means test for the first 12 weeks of permanent care. Whether the council then helps depends on your other capital. Ask your local authority whether it applies to you.
When is my home not counted for care fees?
It is disregarded if a husband, wife, partner, a relative aged 60 or over, a disabled relative or a dependent child still lives there, and during any period of temporary rather than permanent care. It is also ignored for the first 12 weeks of a permanent stay.
Can I keep my house and still get care?
Often yes, through a deferred payment agreement. The council pays your fees and recovers them later from the value of your home, usually when it is sold or after death, so the property stays in your name and need not be sold during your lifetime. Interest applies.
Can I use equity release instead of selling?
Some families do, to unlock money from the home while keeping it. Equity release is an FCA-regulated product with real risks and is not right for everyone. We provide information only and can refer you to an authorised adviser; take regulated advice before acting.
Need help with your own situation?
We can introduce you to an FCA-authorised care funding specialist who will look at your circumstances and the options.