Care home fees in the UK now average £67,496 a year for residential care and £79,820 for nursing care. With the average care home stay lasting around two and a half years, a family can easily face a bill of £170,000 to £200,000.
For many families, that means one thing: the family home has to be sold.
It is an emotional decision, and a complicated one. There are means tests, legal authority requirements, deprivation-of-assets rules, and multiple selling options to weigh up. Get it wrong and you could end up paying more than you need to, or falling foul of the local authority.
This guide walks you through the entire process, step by step. From understanding whether you actually have to sell, to choosing the fastest or most profitable way to do it. We have helped hundreds of families in exactly this situation, so we know where the pitfalls are and how to avoid them.
Key Takeaways
- The family home usually counts towards the means test unless a spouse, partner, or qualifying relative still lives there
- Care fees are substantial: £67,496 to £79,820 per year on average, with no lifetime cap in place
- You need legal authority to sell (Lasting Power of Attorney or Court of Protection deputyship) if your parent lacks mental capacity
- Deliberate deprivation of assets rules mean you cannot simply give the house away or sell it below market value to avoid fees
- A 12-week property disregard gives breathing room at the start, but the clock is ticking from day one
- Waiting 4 to 6 months for an open-market sale can cost £15,000 to £35,000+ in ongoing care fees alone
Does My Parent’s House Have to Be Sold?
Not always. But in most cases, yes.
When someone enters residential care, the local authority carries out a financial assessment (means test) to decide who pays. Your parent’s savings, investments, and property all count.
In England, the capital thresholds for 2026/27 are:
| Capital Level | What Happens |
|---|---|
| Above £23,250 | Your parent pays for all their care (self-funder) |
| £14,250 to £23,250 | Partial council support on a sliding scale (£1 per week for every £250 of capital) |
| Below £14,250 | Maximum council contribution (based on income) |
Source: GOV.UK Social Care Charging Guidance 2025-26
Here is the critical point: England’s capital thresholds have been frozen since 2010. They have not moved in 16 years. Back when these limits were set, the average house price in England was around £165,000. Today it is well over £290,000. That means more and more homeowners are being dragged into self-funding every single year.
Did You Know?
In Wales, the capital threshold is significantly more generous at £50,000. If your parent’s total capital (excluding property in certain situations) falls below £50,000, they may qualify for local authority support towards their care fees.
Source: GOV.WALES, 2019
When the property is NOT counted
The family home is disregarded from the means test if any of the following people still live there:
- Your parent’s spouse or civil partner
- A close relative aged 60 or over
- A close relative under 60 who is incapacitated
- A child of the care recipient under 18
If none of these apply and the property is empty, its value will almost certainly be included in the financial assessment.
The 12-week property disregard
There is one important breathing space. For the first 12 weeks after your parent permanently moves into a care home, the value of the property is ignored in the means test. This gives the family time to decide what to do: sell, rent, or apply for a deferred payment agreement.
After those 12 weeks, the property is counted in full (unless a permanent disregard applies).
What about the £86,000 care cost cap?
You may have heard about a planned lifetime cap on care costs. The previous government announced an £86,000 cap that would have limited how much anyone had to spend on their own personal care over a lifetime.
It is not happening.
The Labour government scrapped the cap in July 2024, citing the need to tackle a £22 billion public spending shortfall. There is currently no lifetime cap on care costs in the UK, and no replacement has been announced.
The bottom line? If your parent owns a property and has capital above the threshold, they will almost certainly need to fund their own care. For most families, that means selling the house.
Do You Need Legal Authority to Sell?
You cannot just decide to sell your parent’s house. You need the right legal authority first, and what that looks like depends on whether your parent still has mental capacity.
If your parent has mental capacity
They can decide to sell the property themselves and instruct a solicitor. As their child, you can help and support, but the decision and the signatures must be theirs. You might attend viewings, liaise with agents, and handle the paperwork, but the sale is legally their transaction.
If your parent lacks mental capacity
This is where it gets more complicated. You will need one of two things:
Option 1: Lasting Power of Attorney (LPA) for Property and Financial Affairs
An LPA is a legal document that gives a named person (the “attorney”) the power to manage someone’s finances and property on their behalf. The crucial thing: it must be set up while your parent still has mental capacity.
If your parent already has an LPA registered with the Office of the Public Guardian, you can use it to sell the property on their behalf, provided you act in their best interests.
Key costs and timelines for an LPA in 2026:
| Item | Cost |
|---|---|
| OPG registration fee | £92 per LPA (increased from £82 in November 2025) |
| Solicitor fees (if used) | £300 to £600 per document |
| Registration time | 8 to 10 weeks (median in early 2026) |
| Fee exemption | Available if donor’s income is under £12,000 (50% reduction) |
Source: UKLPA.co.uk, 2026
Option 2: Court of Protection deputyship
If no LPA was set up before your parent lost capacity, you will need to apply to the Court of Protection for a deputyship order. This is slower, more expensive, and involves ongoing court oversight.
- Application fee: £408
- Solicitor costs: £2,000 to £5,000+
- Timeline: Typically 4 to 6 months
- Ongoing: Annual supervision fees (£35 to £320) and security bond required
While you are waiting for deputyship, care fees are still building up. That is 4 to 6 months of costs at £1,000 to £1,500 a week with no sale possible.
Important
Do not wait. If your parent is showing signs of cognitive decline, speak to a solicitor about setting up an LPA now, while they still have capacity. Once capacity is lost, the LPA route closes and you are left with the deputyship process, which costs significantly more and takes considerably longer.
Deferred Payment Agreements: Buy Time Without Selling Immediately
If you are not ready to sell straight away, a deferred payment agreement (DPA) with the local authority might give you breathing room.
How it works
The council pays (or contributes to) your parent’s care fees upfront. A debt is secured against the property, with interest. When the property is eventually sold (or within 90 days of your parent’s death), the debt is repaid.
Think of it as a loan from the council, secured against the house.
The costs
This is not a free ride. Interest accrues from day one:
Source: GOV.UK Social Care Charging Guidance
On top of the interest, councils can charge administration and set-up fees. And the property still has to be sold eventually to repay the debt.
When a DPA makes sense
- The family needs time to process the situation emotionally before selling
- You believe the property market will improve in the near future
- A qualifying relative may move into the property, triggering a permanent disregard
When a DPA is a bad idea
- Care fees are high and the interest is eating into equity quickly
- The property needs significant maintenance while sitting empty
- Your parent’s care needs are unlikely to change (meaning the property will definitely need selling)
Deliberate Deprivation of Assets: What You Absolutely Cannot Do
This is the section that catches families out.
You cannot give away or sell your parent’s property below market value to avoid care fees. If the local authority believes a transaction was designed to reduce assets and avoid charges, they can treat the asset as if it is still owned. This is called deliberate deprivation of assets.
Warning
There is no time limit on how far back a council can look when investigating suspected deprivation of assets. The commonly repeated “seven-year rule” does not exist in social care law. That rule applies to inheritance tax, not care fees.
Examples of deprivation include:
- Gifting the property to a family member
- Selling below market value to children or relatives
- Transferring ownership into a trust specifically to avoid care fees
- Spending or gifting large sums of money from the sale proceeds unnecessarily
The council will look at timing, the amount involved, and most importantly your parent’s intention at the time. The key question: was it reasonable to expect they might need care when the transfer happened?
If the council decides deprivation has occurred, they will apply notional capital. This means the financial assessment treats your parent as still owning the asset, and they are assessed as a self-funder regardless.
This is a complex legal area. If you are considering any property transactions involving an elderly parent, get professional legal advice first.
NHS Continuing Healthcare: Could Care Be Fully Funded?
Before selling anything, check whether your parent qualifies for NHS Continuing Healthcare (CHC).
CHC is fully funded by the NHS and is not means-tested. If your parent qualifies, the NHS pays for all their care, whether at home or in a care home. Their property and savings are irrelevant.
Eligibility is based on having a “primary health need,” assessed against four criteria:
- Nature of the care required
- Complexity of the needs and the skills required to manage them
- Intensity of the care needed (how much, how often)
- Unpredictability of how needs change over time
CHC assessments are carried out by a multidisciplinary team, starting with a screening checklist. If the checklist indicates eligibility, a full Decision Support Tool assessment follows.
It is worth pushing for this assessment. Many families do not know it exists, and Age UK estimates that a significant number of eligible people never receive it.
Did You Know?
Even if your parent does not qualify for full CHC, they may qualify for NHS-funded nursing care (FNC). This is a flat-rate contribution towards the nursing element of their care. It will not cover everything, but it reduces the amount payable from their assets.
Your Selling Options: Speed vs. Price
Once you have established that the property needs to be sold, the next question is how.
There are three main routes, and each involves a different trade-off between speed, price, and certainty.
| Method | Typical Timeline | Expected Price | Best For |
|---|---|---|---|
| Estate agent | 3 to 6 months+ | Up to 100% of market value | Maximum price when time is not critical |
| Property auction | 6 to 8 weeks | 85% to 95% of market value | Speed with some competition; unusual properties |
| Cash house buyer | 2 to 4 weeks | 75% to 85% of market value | Maximum speed and certainty; no hassle |
Selling through an estate agent
This is the traditional route and typically achieves the highest sale price. But it is also the slowest and least certain.
Typical costs:
- Agent fees: 1% to 3% of sale price (typically 1.5% including VAT)
- Solicitor/conveyancing: £1,000 to £2,000
- EPC certificate: £60 to £120
The biggest risk? The sale falling through. According to Property Rescue’s own data, tracked across thousands of open-market residential sales between 2020 and 2026, 34.6% of property sales in England and Wales fell through before completion. That is roughly one in three transactions that collapsed after the offer was accepted.
If a sale falls through after three or four months, you are back to square one, having paid months of care fees with nothing to show for it.
Selling at auction
Auction is faster than an estate agent and offers more certainty, because the sale is legally binding when the hammer falls.
Typical costs:
- Auction house fees: 2% to 3% plus VAT
- Solicitor/legal pack preparation: £1,000 to £2,000
The risk: if the property does not reach its reserve price, it does not sell. You are then left with the legal pack costs and still no sale.
Selling to a cash house buyer
This is the fastest route. A reputable cash buyer will make an offer within 24 to 48 hours and can typically complete in 2 to 4 weeks. There are no agent fees, no chain, and the property is bought as-seen (no need to clear, clean, or repair).
The trade-off is price: expect 75% to 85% of market value. But when care fees are running at £1,000 to £1,500 a week, speed has a tangible financial value.
From Our Experience
Around 60% of the properties we buy come from landlords exiting the market or homeowners whose interest-only mortgage is about to expire. But we also see a significant number of families selling inherited or parental property to fund care. About 90% of the people who come to us have already tried the open market first.
Property Rescue company data, 2026
The Hidden Cost of Waiting
This is the part most families underestimate.
While you are waiting for an open-market sale to complete, the meter is running:
On top of care fees, the empty property is generating its own costs:
- Council tax at the full rate (some councils offer a short exemption, but most now charge 100% or even a premium on long-term empty homes)
- Buildings insurance (more expensive for unoccupied properties)
- Utility standing charges
- Maintenance and security
- Garden upkeep (overgrown gardens put off buyers and reduce value)
Let us do the maths on a typical 4-month wait for an open-market sale:
| Cost | 4-Month Total |
|---|---|
| Care fees | £16,000 to £26,400 |
| Council tax | £500 to £800 |
| Insurance, utilities, maintenance | £600 to £1,200 |
| Estate agent fees (on completion) | £3,000 to £6,000 |
| Total holding costs | £20,100 to £34,400 |
That £20,000 to £34,000 narrows the gap between a full open-market price and a faster cash sale considerably. In many cases, the net proceeds end up being surprisingly similar.
Case Study: Inherited Property in the Midlands
We had a seller in the Midlands who had inherited a three-bed mid-terrace that had been sitting empty for eight months. Council tax, insurance, utilities, clearance costs – it was all adding up. We exchanged within a week and completed 28 days later, which stopped the bleeding.
Property Rescue case study, 2026
Property Valuation for the Means Test
The local authority will assess the property’s value as part of the means test. They typically use open-market value, meaning what a willing buyer would reasonably pay.
A few important points:
- You can challenge the valuation. If you think the council’s figure is too high, get your own independent valuation. Properties in poor condition, with structural issues, or in areas with weak demand may be worth significantly less than the council assumes.
- Joint ownership matters. If your parent owns the property jointly (for example, as tenants in common with a sibling), only their share is assessed. Crucially, their share is valued at what a willing buyer would pay for a partial interest, which is typically less than a simple 50/50 split of the full value.
- Condition affects value. An empty property that has deteriorated may be worth less than the council’s desktop valuation suggests. Get a surveyor’s report if the condition has declined.
Step-by-Step: The Practical Timeline
Here is a realistic timeline for the whole process, from care home admission to sale completion.
Phase 1: Legal authority (Weeks 1 to 4+)
- Assess your parent’s mental capacity. Can they make informed decisions about their finances and property? If uncertain, their GP can carry out a formal assessment.
- Check for an existing LPA. Search the Office of the Public Guardian register to see if an LPA has already been registered.
- If no LPA exists and capacity is lost, apply for deputyship. This will take 4 to 6 months. Use this time to prepare the property for sale so you are ready to move quickly once the order is granted.
- If your parent has capacity, get their written consent and instruct a solicitor directly.
Phase 2: Choose your selling method (Weeks 4 to 5)
- Get multiple valuations. At minimum, get two estate agent appraisals and one cash buyer offer. Compare the net proceeds after all costs and holding charges, not just the headline figure.
- Assess your time priorities. How quickly do you need the money? Are care fees draining assets every week?
- Factor in the 12-week property disregard. If you are still within the first 12 weeks, you have a window, but it is closing.
Phase 3: The sale (Weeks 6 to 18+)
- Instruct your chosen route (agent, auction, or cash buyer).
- Arrange for the property to be cleared if needed. An empty, clean property sells faster.
- Accept an offer and instruct a solicitor.
- Exchange contracts. This is when the sale becomes legally binding.
- Complete the sale. Funds are transferred. Pay outstanding care fees from the proceeds.
Can You Rent the Property Instead of Selling?
Yes, you can rent it out. But there are complications.
Rental income will usually need to be declared and may be counted towards your parent’s assessed income for care fee purposes. The property’s capital value will still be included in the means test.
If your parent has a deferred payment agreement, the council may require rental income to be put towards care fees.
Renting can work if:
- The rental income is enough to meaningfully offset care fees
- You are willing to take on landlord responsibilities (or pay a letting agent)
- The property is in good enough condition to let without major investment
For most families, renting delays the inevitable rather than solving the problem.
What Happens if Your Parent Dies Before the Sale Completes?
The property becomes part of their estate. If there is a will, the executor handles the sale. If there is no will, an administrator is appointed under the rules of intestacy.
In either case, probate will likely be needed before the property can be sold. This adds 3 to 6 months to the process on top of the existing sale timeline.
Any outstanding care fees and deferred payment debts will need to be settled from the estate before beneficiaries receive their inheritance.
Need to Sell a Property to Fund Care?
We buy properties for cash in any condition. No agent fees, no chain, no waiting. We can complete in as little as 28 days, and we cover your legal costs when you use our recommended solicitor.
We buy over 500 properties a year and our average completion time is 28 days from the day we agree a price.
Frequently Asked Questions
Can I sell my parent’s house without their knowledge?
No. If your parent has mental capacity, they must consent to the sale. If they lack capacity, you need legal authority (a registered LPA or a Court of Protection deputyship order) and you must act in their best interests. Selling without proper authority is not legally possible.
What if my parent wants to keep the house?
Discuss the situation honestly with their care team. If a return home is realistic, a deferred payment agreement may buy time. But if the medical consensus is that they will not be returning home, delaying the sale means interest and holding costs accumulate. It is a difficult conversation, but an important one.
Is there a way to protect the house from care fees?
If a spouse, partner, or qualifying relative lives in the property, it is automatically disregarded. Beyond that, there is very little you can do once care needs arise. Transferring the property to avoid fees is treated as deliberate deprivation. The only reliable protection is having qualifying residents in the property or being eligible for NHS Continuing Healthcare.
Do I have to sell the house, or can the council force a sale?
The council cannot force you to sell. But they can refuse to contribute to care fees while the property value takes your parent above the threshold. If a deferred payment agreement is in place, they will eventually need to be repaid, and if the debt is not settled within 90 days of your parent’s death, the council can take steps to recover the money.
What happens with joint ownership?
If your parent co-owns the property (for example, with a sibling or another family member), only their beneficial share is included in the means test. The council cannot force the other owner to sell. However, the share is still counted as capital, and its value is assessed at what a willing buyer would pay for that share on the open market.
Should we take financial advice?
Strongly recommended. A financial adviser specialising in later-life planning can help you understand the options, structure things to minimise unnecessary costs, and avoid mistakes. Look for advisers accredited by the Society of Later Life Advisers (SOLLA).
What if my parent needs care but their house needs a lot of work?
A property in poor condition can be harder to sell on the open market. It may put off mortgage-dependent buyers, reduce the number of offers, and extend the sale timeline. A cash buyer will purchase in any condition, which removes this obstacle entirely. The valuation will reflect the property’s actual condition, but you avoid the cost and delay of carrying out repairs.
Can I use equity release instead of selling?
Potentially, but with caution. Equity release (such as a lifetime mortgage) can release funds from the property without selling it. However, the interest rates are typically higher than standard mortgages, the debt grows over time, and it significantly reduces the inheritance left for beneficiaries. It is worth discussing with a qualified equity release adviser, but in many care-funding situations, a straight sale is simpler and more cost-effective.
Disclaimer
This article provides general information only and is not a substitute for professional advice. Care funding rules are complex and your parent’s situation may involve factors not covered here.
We strongly recommend consulting:
- Your local authority adult social care team for care assessments and deferred payment agreements
- A qualified solicitor experienced in elderly care law, mental capacity, and property matters
- A financial adviser specialising in later-life planning (look for SOLLA-accredited advisers)
Property Rescue is a cash house buying company, not a legal or financial advice service. The information in this guide is accurate to the best of our knowledge as of May 2026 but should not be relied upon as a substitute for advice tailored to your specific circumstances. Legislation and thresholds can change. Always verify current figures with the relevant authority.
