Quick summary
For care at home, no. The value of the house someone lives in is not counted when the council works out what they pay for care in their own home. The rules are different for a permanent move into a care home, and even then there are disregards and a way to avoid selling immediately.
The straight answer
If your mum stays in her own home and receives care there, the council does not count the value of that home in the financial assessment. It looks at her income and her other capital: savings, investments, second properties.
This is the most misunderstood thing in social care funding, and the fear of it stops people ringing anyone at all. Families spend months managing alone because they believe asking for help puts the house at risk. For care at home, it does not.
What is counted for care at home
Counted | Not counted |
|---|---|
Savings and investments | The home they live in |
Income: State Pension, private pensions, most benefits | Personal possessions |
Second properties | The value of a pre-paid funeral plan |
Premium bonds, shares, ISAs | Certain compensation payments held in trust |
The capital limits for England in 2026/27 are £23,250 upper and £14,250 lower. Above the upper limit, someone pays the full cost. Below the lower, capital is ignored and the contribution comes from income. Between the two, there is a tariff of £1 a week for every £250 of capital above the lower limit.
There is also a protected amount of income, the Minimum Income Guarantee, that a charge cannot take someone below. Our guide to the assessment explains how the needs and financial assessments fit together.
A care home is different
For a permanent move into residential care, the property is usually taken into account. That is the rule that generates the fear, and it comes with several important exceptions.
The property is disregarded entirely if it is still occupied by:
- A spouse, civil partner or unmarried partner.
- A relative aged 60 or over, or who is incapacitated.
- A child of the person under 18.
- In some circumstances, at the council’s discretion, another carer who lives there.
There is a 12-week property disregard at the start of a permanent care home stay, which gives families breathing space rather than forcing a quick sale.
A deferred payment agreement lets the council pay the fees and recover the money later from the estate or when the property is sold, so nobody has to sell in a hurry. Interest and fees apply, and it is a loan rather than a gift.
Temporary or respite stays are treated differently again, and the property is not counted in the same way.
Why this makes home care cheaper than it looks
Not because the hourly cost is lower, though at fewer than about 35 to 40 hours a week it is. Because the means test treats a homeowner completely differently depending on where the care happens.
The same person can be council-supported at home and a full self-funder in a care home, purely because the house enters the calculation on a permanent move. Our comparison of live-in and hourly care sets out the numbers.
What about giving the house away?
Transferring a property to children to avoid care fees is treated as deprivation of assets. Councils can and do investigate, there is no fixed time limit, and both timing and intention are considered. If the council decides the purpose was to avoid care charges, it can assess the person as if they still owned it, and in some cases pursue the person who received it.
There are also risks nobody mentions at the kitchen table: the child’s divorce, bankruptcy or death, capital gains tax, and losing control of your own home. Take proper legal advice from a solicitor before doing anything.
Things that are also not counted, and often forgotten
- Attendance Allowance is not means-tested at all: £76.70 or £114.60 a week from April 2026, whatever the savings.
- The Council Tax severe mental impairment disregard is not means-tested either, and can remove the bill entirely.
- NHS Continuing Healthcare is not means-tested. Where health needs are the primary reason for care, the NHS funds the whole package, house or no house. See our guide to Continuing Healthcare.
- Reablement after a hospital stay is free for up to six weeks and not means-tested. See the six weeks of free care.
- The care needs assessment itself is free and a legal right regardless of wealth.
What to do next
- Ask for a care needs assessment anyway. Free, and it happens before anyone looks at money. Cheshire East Council 0300 123 5010, Call Derbyshire 01629 533190, Staffordshire Cares 0300 111 8010. Our council guide explains which applies.
- Claim Attendance Allowance if it is not already in payment.
- Get the Council Tax disregard if dementia or a similar condition is involved.
- Take independent advice before any decision about property, from a solicitor and from Age UK or MoneyHelper.
- Sort out lasting powers of attorney while the person can still make them.
Frequently asked questions
Will they take my mum’s house to pay for care at home?
No. The home she lives in is not counted in the financial assessment for care delivered in her own home.
What if she moves into a care home?
The property is usually taken into account for a permanent move, unless a qualifying relative still lives there. A 12-week disregard applies at the start, and a deferred payment agreement can prevent an immediate sale.
Does it make a difference that the house is in both our names?
Joint ownership affects how any share is valued, and it does not remove the property from consideration for a permanent care home move. Take legal advice on the specifics.
Can we put the house in trust?
Schemes marketed for this purpose are frequently challenged as deprivation of assets, and some are expensive and ineffective. Speak to a regulated solicitor before paying anyone for one.
What if her savings run out?
Tell the council before capital reaches £23,250 rather than after. It may take over funding, though it may only pay its own rate, which can mean a top-up or a change of provider.
Does the council check bank statements?
Yes. The financial assessment involves evidence of income and capital, and councils can look back at transactions where deprivation is suspected.
About Visiting Angels Cheshire East
Visiting Angels Cheshire East provides care at home across Macclesfield, Wilmslow, Knutsford, Congleton, Alsager and the surrounding villages of East Cheshire, along with Buxton, Whaley Bridge and the Staffordshire Moorlands towns.
- You choose your caregiver, and meet them before care starts.
- No visit is ever shorter than an hour.
- You see the same faces. Our carer turnover is 12 per cent, against a sector figure of 23.7 per cent (Skills for Care, 2025).
- Carers trained in dementia, Parkinson’s, stroke recovery and complex care.
- Live-in care available, up to full time, which keeps someone in the house they own.
Sharon’s mother had been having visits for a fortnight when she wrote this:
“It is not something we ever thought we would need but Visiting Angels have been wonderful. They came to see us to find out exactly what we needed, even though we weren’t completely sure ourselves, but through our conversation we were able to put a package of support in place. They offered advice on other things that were available to us as well particularly financially. They put our minds at ease during what was quite a stressful time in our lives.”
Sharon Thornton, Google review
Not sure what you need yet? Start with a free assessment
Our free home care assessment is a visit at a time that suits you, with no obligation afterwards. In it we will:
- Work out what is actually difficult, and which times of day.
- Talk through a realistic package, and what it would cost.
- Look at the money with you, including the benefits that are not means-tested at all.
- Tell you honestly if you do not need us yet, or if independent financial advice should come first.
If worry about the house is the reason you have not rung anyone, call us on 01625 720157. You can also send an enquiry, and you can see what our services cover.
Authored by Dr Haroon Ahmad, Managing Director, Visiting Angels Cheshire East.
Published 27 September 2026. Last updated 27 September 2026.
This article is general information about care funding, not financial or legal advice, and no substitute for advice about your circumstances. Do not make decisions about property ownership on the basis of this article; deprivation of assets rules are complex and the consequences serious. Capital limits and rules change, usually each April, and figures were correct at the date of publication. Free independent advice is available from Citizens Advice, Age UK and MoneyHelper. To the fullest extent permitted by law, GB Care at Home Ltd accepts no liability for any loss arising from reliance on this article.
