The Daily Mail is reporting today that more than 20,000 pensioners were forced to sell their homes last year to pay for care fees.
This means that an average of 60 homes are being sold a day to meet the cost of long-term care.
Since 2005, the number of people being forced to sell their property as a result of care fees costs has risen by 17%.
As the population in the UK continues to age, this trend is likely to continue, with more elderly people needing to sell their homes to fund the cost of care.
One interesting figure from the Daily Mail report related to the level of care fees inflation.
Over the past five years, the cost of care fees have escalated by more than 20%. They now stand at an average of £25,896 a year, although care fees can be significantly more expensive in some areas, particularly in London and Surrey.
As the rules currently stand in England, individuals with total assets exceeding £23,250 are expected to fully fund the cost of their own care. This asset limit includes property, with some exceptions.
A local authority will disregard the value of your property in certain circumstances where someone else lives there. Some examples include your spouse or partner, a relative over the age of 60 or who is disabled, where a minor (under the age of 16) who is dependent on you lives there or where a carer who has given up their own home to provide care lives in your home.
You can download a free copy of our guide to care fees planning here. Do contact us if you would like to speak to one of our specialist care fees planning advisers.
Photo courtesy of blech.
