Care home fees can cost half value of house
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%.