Care advisors FirstStop warns that selling your home may not be enough to fund care.
FirstStop analysis of economic data has found that compared to five years ago selling your home may not be enough to pay for a care home place. Taking into account, above inflation rises in care costs coupled with reductions in both property values and deposit rates means that compared to 2006/07, when care costs could just about be funded from the proceeds of an average home, in 2010/11 with economic trends stacking against you your capital will rapidly deplete.
Recent data has shown that care home fees in Britain have risen by as much as 31%. Whilst in England, the Northern and Southern Home Counties have been hit worse seeing rises over five years of 29% and 28% respectively.
Philip Spiers of FirstStop says, “The consequences of this are going to be catastrophic for older people who are self-funding their care homes for more than a few years and for councils, who are going to have to pick up the costs far earlier than ever before. In 2006/07 councils could expect someone with an average valued property to be able to fund their care for well over ten years but in today’s climate someone funding their care in real terms can expect to be £50,000 worse off after five years. This is based on a fairly low average fee rate, care homes can cost far more, if you need a nursing home which could easily cost £700 per week you could expect to be asking the council for support after just over five years.”
FirstStop Advice strongly urges older people contemplating a move into a care home to seek advice. They should ensure they receive an assessment of their care needs to ensure the council will fund them if required, maximise any state assistance they are entitled to and consider alternatives to leaving property proceeds on deposit.