Care home fees can cost half value of house

The Guardian - - FINANCIAL - Ru­pert Jones

The cost of an av­er­age stay in a care home can swal­low more than half the value of a house in some parts of the coun­try, ac­cord­ing to re­search pub­lished to­day.

The find­ings show the typ­i­cal per­son en­ter­ing res­i­den­tial care will pay be­tween £50,000 and £93,000, depend­ing on where they live.

Philip Ham­mond, the chan­cel­lor, an­nounced in this month’s bud­get that an ex­tra £2bn of fund­ing would be granted to so­cial care in Eng­land over the next three years and that the gov­ern­ment would pro­duce a dis­cus­sion paper this year on how to fund so­cial care in the fu­ture.

Re­search from mu­tual in­surer Royal Lon­don said the cost of a typ­i­cal res­i­den­tial care home stay ranges from 18% to 56% of the value of the av­er­age house.

It said many peo­ple were at risk of los­ing “a large part of the value of their home” if they were hit with such costs. For most pen­sion­ers, their house was likely to be their big­gest as­set on which to draw to meet care home bills. For many, that will mean sell­ing the fam­ily home.

In north-east Eng­land, where the av­er­age house price at the end of 2016 was just un­der £129,000, a stay of 30 months in a lo­cal home cost­ing £554 a week would eat up 56% of the value of a home, as the bill would be £71,000.

For those liv­ing in Lon­don it would be around 18% of the value of their prop­erty. For south-east Eng­land it was 29%, for East Anglia it was 32% and for the Mid­lands it was 40-41%.

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