Selling the average home in England could provide enough cash to pay for seven years of care in a residential home, analysis from Just Group has found.
However, with care cost increases outstripping property price rises, the number of years covered is gradually reducing, Just Group warned.
While average house prices in England have risen by around 12 per cent since 2020/21 to reach more than £300,000 by the end of last year, the weekly cost of care in a residential home has risen by around 20 per cent to £816 a week.
Just Group group communications director, Stephen Lowe, said: “Under the current means-tested social care system, those with assets of more than £23,250 have to pay for their own care and this will include their residence.
“Most people haven’t made alternative plans for paying for care. Reforms that might have helped to protect the value of the home have been delayed and may never be implemented.
“That means the onus remains on people to find the funds where they can, which is often the home.
“The care sector is facing huge funding pressures and, as we head towards a general election, voters should look at what answers the politicians are suggesting.”
The analysis reported that care cost increases have outstripped house price rises in all English regions over the period, particularly in London where average home prices have risen just 3 per cent compared to care costs rises of 17 per cent.
The analysis also showed that houses in London would fund the most years of care, with the sale of the average house in the capital funding 10.84 years of care.
This is due to the average house price in London being £508,037 while the average annual cost of residential care in the area stands at £46,852.
This was in contrast to the average number of years funding in the North East which stood at 4.42, the shortest amount of time of any UK region.
This was due to the average house selling for £157,557 while the average annual cost of care was £35,672.
However, Lowe specified that these are “optimistic figures” as, in the real-world, self-funders meeting all their own costs pay higher fees than those receiving council some or all council funding, while the costs would be higher still if specialist nursing care were needed.
tom.dunstan@ft.com
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