Factsheet 38 - Property and paying for residential care - Deferred payment agreements and property rules

Sep 16, 2026

Factsheet 38 explains how property is treated in the local authority financial assessment when someone moves permanently into a residential care home in England. It covers the framework for residential care charging, including when care fees are funded by the local authority versus self-funding. It also explains key rules on ownership, giving away property and deprivation, property disregards, and how valuation works, including options to delay selling a home through deferred payment agreements.

LanguageEnglish

CategoryForms

FormatPDF

Pages30

Reading Time11 min

AccessFree to download

Sources and terms used in this factsheet

Property and the financial assessment

Local authority arranged residential care

Self-funding residential care

Ownership of property

Giving away property and deprivation

Disregarded property

Mandatory disregards

The 12-week property disregard

Valuation of property

Valuation of jointly owned property

Park/mobile homes

Deferred payment agreements

The eligibility criteria

How much can be deferred?

Your written agreement and its contents

Information, advice and advocacy duty

Challenging local authority decisions

Pension Credit and property

Useful organisations

Factsheet 38 Property and paying for residential care August 2026 About this factsheet This factsheet explains how your property is treated in the local authority financial assessment if you go to live permanently in a residential care home. It covers the possibility of delaying the sale of your home to pay care fees via a deferred payment agreement. Other factsheets cover different aspects of the charging system if you are placed by a local authority, for example Age UK factsheet 10, Paying for permanent residential care. Age UK factsheet 58, Paying for shortterm and temporary care in a care home , covers temporary and shortterm circumstances such as respite care. The information in this factsheet is correct for the period August 2026 to July 2027 , but rules and figures sometimes change during the year. The information in this factsheet is applicable in England. If you are in Scotland, Wales or Northern Ireland, please contact Age Scotland, Age Cymru orAge NI. Contact details can be found at the back of this factsheet. Contact details for any organisation mentioned in this factsheet can be found in the Useful organisations section. Contents 1 Sources and terms used in this factsheet 4 2 Property and the financial assessment 5 2.1 Local authority arranged residential care 5 2.2 Self-funding residential care 6 3 Ownership of property 6 4 Giving away property and deprivation 7 5 Disregarded property 7 5.1 Mandatory disregards 7 5.2 Circumstances where it may be unclear 8 5.3 Discretion to disregard 8 5.4 The 12-week property disregard 9 5.5 Moving from a disregarded property 10 6 Valuation of property 11 6.1 Valuation of jointly owned property 11 7 Park/mobile homes 13 8 Deferred payment agreements 14 8.1 The eligibility criteria 14 8.2 Local authority discretion to agree 15 8.3 Estimating care costs and top-ups 16 8.4 How much can be deferred? 16 8.5 Sustainability of the arrangement 17 8.6 Obtaining adequate security 18 8.7 Property valuation 19 8.8 Financial contributions from other sources 19 8.9 Disposable Income Allowance 20 8.10 Interest and administration charges 20 8.11 Your written agreement and its contents 21 8.12 Responsibilities while the agreement is in place 23 | 8.13 Local authority powers to stop deferring costs | 23 | | --- | --- | | 8.14 End of the agreement and repayment | 24 | | 8.15 A ‘loan type’ deferred payment agreement | 25 | | 9 Information, advice and advocacy duty | 25 | | 9.1 The independent advocacy duty | 26 | | 10 Challenging local authority decisions | 27 | | 11 Pension Credit and property | 27 | | Useful organisations | 28 | | Age UK | 29 | Support our work 29 1 Sources and terms used in this factsheet Care Act 2014, regulations and statutory guidance This factsheet is based on the Care Act 2014 (‘the Act’), its supporting regulations and the Care and Support Statutory Guidance (‘the guidance’) , introduced in April 2015. Relevant sections of the guidance include chapter 8 ‘ Charging and financial assessment’, chapter 9 ‘Deferred payments agreements’, annex B on treatment of capital , and annex C on treatment of income. Relevant regulations include: ⚫ the Care and Support (Charging and Assessment of Resources) Regulations 2014 ('the charging regulations') and ⚫ the Care and Support (Deferred Payments) Regulations 2014 (‘the deferred payments regulations’) . The Act, guidance and regulations are mentioned in this factsheet and set out in detail how a local authority must administer adult social care. Care homes and nursing homes This factsheet provides information about residential care, meaning ‘care homes’ and ‘nursing homes’. These are the two standard terms used by the Care Quality Commission. Nursing homes are care homes where a nurse must be present to provide or supervise medical-type care alongside basic personal care. The term ‘care home’ is used in this factsheet to cover both types

FAQs

What period does Factsheet 38 apply to, and where is it applicable?

The factsheet is correct for August 2026 to July 2027. It applies in England; people in Scotland, Wales, or Northern Ireland are directed to relevant local organisations.

When does a person become a self-funder for residential care costs?

A person does not qualify for local authority funding if they have more than £23,250 in capital or sufficient income to meet the necessary cost of their care, which is described as being a self-funder.

How can deferred payment agreements help with paying for residential care?

Deferred payment agreements may allow the sale of a home to be delayed so care fees can be paid later. The factsheet sets out eligibility criteria and how deferred amounts, charges, security, and the agreement operate.

Sep 16, 2026

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