What Happens to Your Home If You Move Into Care? (UK)
- Nick Parker
- 3 hours ago
- 4 min read
Understanding how moving into care can affect your home, property value, and later-life financial options.
Introduction
Moving into residential or nursing care is something many people consider as part of later-life planning. One of the most common concerns is what happens to your home if you move into care and how property may be used to fund care costs.
This guide explains what typically happens to a property when someone moves into care, how different circumstances can affect outcomes, and how later-life financial options may be considered in this context. It is intended to help you understand the issues before deciding whether to seek regulated financial advice.
What does “moving into care” mean?
Moving into care usually refers to entering:
Residential care, or
Nursing care
This may be:
Temporary, for recovery or rehabilitation, or
Permanent, where independent living is no longer possible
The impact on your home depends on:
Whether care is temporary or permanent
Whether anyone continues to live in the property
How care funding is assessed
What happens to your home if care is temporary?
If care is temporary and you intend to return home, your property is not normally affected.
In these situations:
The home is usually retained
Property value is not typically included in funding assessments
Care costs may be covered through income or short-term arrangements
What happens if care becomes permanent?
If care becomes permanent, your home may be taken into account when assessing how care is funded, depending on your circumstances.
In some cases:
The property may need to be sold
The value of the home may form part of your assets
Alternative funding options may be explored before a sale is required
Care funding assessments can vary, so understanding how property is treated is important.
Does anyone else live in the property?
Whether your home is included in a financial assessment often depends on who continues to live there.
In many situations, the value of the property may be disregarded if it is occupied by:
A spouse or civil partner
A close relative who meets specific criteria
Someone who is financially or medically dependent
This is a key factor when considering next steps.
How are care costs usually funded?
Care costs may be funded through a combination of:
Personal income (such as pensions)
Savings and investments
Local authority funding (subject to assessment)
Property value
Understanding where property fits into this picture can help clarify whether alternative options should be explored.
How equity release fits into care planning
Equity release is sometimes discussed in relation to care, but it is important to understand how it works in this context.
Equity release:
Is typically repaid when you move into long-term care
Often involves selling the property to repay the loan
May reduce the value of the estate over time
In some cases, equity release may have been arranged before care is needed, which can influence later decisions.
Downsizing and long-term care planning
Some homeowners consider downsizing as part of longer-term planning.
Downsizing may:
Release funds without borrowing
Reduce ongoing housing costs
Simplify future care arrangements
However, it involves moving home, which may not be suitable for everyone.
Retirement interest-only mortgages and care
Retirement interest-only (RIO) mortgages involve ongoing monthly interest payments and are usually repaid when the property is sold.
Because regular payments are required:
RIO mortgages depend on sustainable income
Moving into care may affect affordability
The property may still need to be sold
Using savings or pension income instead
In some cases, savings or pension income may help fund care costs, either alone or alongside other options.
This approach may:
Avoid borrowing
Reduce reliance on property value
Depend on how long care is required
Long-term planning often involves considering how care needs may change over time.
How moving into care can affect inheritance
Care funding decisions can affect inheritance.
Potential impacts include:
Selling the home to fund care
Reduced estate value over time
Fewer assets remaining for beneficiaries
Understanding these implications can help inform long-term planning and family discussions.
Not sure where to start?
If you’re unsure how moving into care may affect your home or finances, exploring later-life options side by side can help clarify your next steps.
Free to use. No obligation. We do not provide financial advice.
Frequently asked questions
Will my home always be sold if I move into care?
Not always. It depends on whether care is permanent and who continues to live in the property.
Can equity release be used to pay for care?
Equity release is usually repaid when you move into long-term care, so it may not always be suitable for funding care costs.
What if my partner still lives at home?
In many cases, the property may be disregarded if a partner remains living there.
Should I plan for care costs in advance?
Planning ahead can help reduce uncertainty, but suitability depends on individual circumstances.
This guide provides general information only and should not be considered financial advice. Care funding rules and financial products are subject to regulation and individual circumstances. Regulated advice should be sought where appropriate.
