Selling a parent's house to pay for care

A parent doesn't automatically have to sell their home to pay for care. In England, the home is only counted if they move permanently into a care home, and even then the council must ignore it for the first 12 weeks, and for as long as a partner or certain relatives still live there. After that, many families do sell, but a deferred payment agreement with the council can delay or avoid a sale during your parent's lifetime. This guide explains the rules, who can legally sell, and the honest pros and cons of each way to sell.

It's general information for England and Wales, not legal or financial advice. Care funding decisions are big and hard to undo, so it's worth speaking to the council, a solicitor, or a specialist care fees adviser. Age UK and Age Cymru give free, independent information.

Does a parent have to sell their home to pay for care?

It depends on where the care is given and who still lives in the home.

• Care at home: the value of the home isn't counted. The NHS says plainly that you won't have to sell your home to pay for help in your own home.
• A permanent move into a care home: the home is usually counted as capital in the council's financial assessment (the means test), unless one of the exceptions below applies.

The capital limits in England for 2026 to 2027

Your parent's capital	What it means
More than £23,250	They pay the full cost of their care (a "self-funder")
Between £14,250 and £23,250	The council pays part of the cost, and your parent contributes from their income plus a set amount based on their capital
Less than £14,250	Their capital is ignored, but they still contribute from their income

The government confirmed in February 2026 that these limits stay at the same level for 2026 to 2027.

In Wales the rules are set by the Welsh Government and are different. The capital limit for residential care is £50,000, so someone with more than that may have to pay the full cost. Ask the council or Age Cymru how the home is treated in your parent's case.

Before you sell: check NHS continuing healthcare

If your parent's needs are mainly health needs, they may qualify for NHS continuing healthcare, which is care arranged and paid for entirely by the NHS, at home or in a care home. It depends on assessed needs, not a diagnosis. Ask their GP, hospital team or social worker for the initial checklist before you commit to selling. If they don't qualify but need nursing care in a care home, the NHS still contributes towards the nursing part.

When the home isn't counted

The council must ignore the home if, after your parent moves into a care home, it's still the main home of:

• their husband, wife, civil partner or partner (unless they're estranged)
• a relative or family member who is aged 60 or over, or is incapacitated (for example, receives a disability benefit such as Attendance Allowance or Personal Independence Payment)
• a child of theirs under 18

They must have been living there before your parent went into the care home. The council also has discretion to ignore the home in other cases, for example where a carer gave up their own home to live there.

The 12-week property disregard

When someone moves permanently into a care home, the council must ignore the value of their home for the first 12 weeks. If the stay began as temporary, the 12 weeks start from the date it became permanent.

This gives you breathing space to decide what to do. Two points catch families out:

• If the house sells within the 12 weeks, the disregard stops from the date of sale and the money counts as capital straight away.
• The council's contract with the care home may end after 12 weeks unless a deferred payment agreement is in place, so start talking to the council early.

Deferred payment agreements

A deferred payment agreement (DPA) is a loan from the council towards the care home fees, secured on the home and repaid later. It can be used to defer the costs until after death, or as a bridge while you sell.

In England, the council must offer one if your parent:

• has been assessed as needing a care home
• owns the home that was their main or only home, and it isn't being ignored in the means test
• has £23,250 or less in capital, not counting the home
• agrees to the terms, which include a legal charge on the home

Things to know before signing:

• Interest can be charged, up to a national maximum that the government resets every six months (on 1 January and 1 July). Interest added to the debt compounds, so ask the council for a worked example.
• Admin charges can be added, but must be reasonable.
• All joint owners must agree and sign.
• Repayment is due when the house is sold, or 90 days after death (the council can allow longer). Interest keeps running until it's repaid.
• You can rent the house out during a DPA, and the council should let your parent keep some of the rent.

Who can legally sell your parent's house?

Only the owner, or someone with legal authority for them, can sell.

Your parent's situation	Who can sell
Has mental capacity	Your parent, with your help
Lacks capacity, has a registered lasting power of attorney for property and financial affairs	The attorney, acting in their best interests
Lacks capacity, no lasting power of attorney	A deputy appointed by the Court of Protection
Owns the house jointly, and the other owner has lost capacity	Usually a Court of Protection application (£432, plus £494 if a hearing is needed), though a registered power of attorney may mean you don't need one

A lasting power of attorney can only be made while your parent still has mental capacity. Registering one costs £92 and takes 8 to 10 weeks if there are no mistakes. If your parent can still make the decision, it's worth doing now, even if a sale is a long way off. Without one, the family has to apply to the Court of Protection for a deputy, which has its own fees, and deputies send a report to the Office of the Public Guardian every year.

Should your parent give the house away instead?

It's a common idea, but it's risky. If the council decides your parent gave away the house (or sold it cheaply to family) deliberately to avoid care costs, it can assess them as if they still owned it. This is called deprivation of assets.

There's an Inheritance Tax catch too. If your parent gives the house away but carries on living in it, it still counts as part of their estate. Speak to a solicitor before transferring anything.

Your options for the house

Option	Pros	Cons
Sell	Clears the way to pay fees; no empty house to look after	Your parent loses the home; fees then come from the money
Deferred payment agreement	No need to sell in your parent's lifetime	Interest and charges build up; less left for the estate
Rent it out	Rent helps pay the fees; the house is kept	You become a landlord, with tenants, repairs and tax to manage
A family member buys it	Keeps it in the family	Must be at a proper price, or it may count as deprivation

Selling the house: which route?

An estate agent usually gets the highest price if the house is in reasonable condition and there's time. Many families sell this way, and it often makes sense if a deferred payment agreement or savings can cover the fees for a few months. If that's your situation, a quick cash sale probably isn't the right choice.

An auction can suit a house needing a lot of work, but there are fees and the price isn't certain.

A cash buyer suits families who need a quick, certain sale, for example when the 12 weeks are running out, the house needs work, or nobody lives nearby to manage viewings. The trade-off is that cash buyers, including us, usually pay below market value.

We make an offer within 24 hours, buy the house as it is (so there are no repairs to do first), pay the legal fees, and you choose the completion date to fit around the council and the care home. We explain how we worked out the offer from recent sales nearby, and there's no obligation to accept.

Looking after the empty house

While your parent is in care, the house may sit empty for months:

• Council tax: homes of people who have moved into a care home may not get a council tax bill while they stay empty. Tell the council. See council tax on empty homes.
• Insurance: tell the insurer the house is empty, as standard cover often has limits for unoccupied homes.
• Bills and security: keep the heating on low in winter, redirect post and visit regularly.

Our costs of an empty house guide adds these up month by month.

A checklist for families

• Ask the council for a care needs assessment and a financial assessment
• Ask about NHS continuing healthcare before committing to a sale
• Check who lives in the home, and whether it should be ignored
• Note the date the 12-week disregard started
• Ask the council about a deferred payment agreement early
• Check there's a registered lasting power of attorney, or start one if your parent still has capacity
• Get the house valued, and tell the insurer and council it's empty
• Don't transfer the house or money to family without legal advice