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Property Disregards & Deferred Payment Agreements
When Can the Family Home Be Excluded?
If someone moves into residential care, the local authority may consider their property as part of the financial assessment.
However, the home is not always automatically included.
Under the Care Act 2014, specific mandatory and discretionary property disregards apply. In some situations, a Deferred Payment Agreement (DPA) may prevent the need for immediate sale.
Understanding these rules before financial decisions are made is essential.
When Is Property Disregarded?
Mandatory Disregards
The local authority must disregard the property if certain qualifying individuals remain living there, including:
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A spouse or civil partner
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A partner
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A relative aged 60 or over
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A disabled relative
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A dependent child under 18
In these cases, the property cannot be included in the means test.
Temporary 12-Week Disregard
When a person first enters permanent residential care, the property must be disregarded for the first 12 weeks. This period allows families time to make decisions without immediate financial pressure.
Discretionary Disregards
In some circumstances, the authority may apply discretion - for example where long-term carers or other vulnerable occupants remain living in the property.
Discretion must be exercised reasonably and lawfully.
Deferred Payment Agreements (DPA)
If the property is not disregarded, a Deferred Payment Agreement may allow care costs to be secured against the property instead of requiring immediate sale.
What Is a Deferred Payment Agreement?
A DPA allows the local authority to pay care fees on your behalf while placing a legal charge against the property, recoverable when it is sold or from the estate.
Who Is Eligible?
Eligibility depends on capital limits, property ownership, and whether the property is already subject to other charges or disputes.
Interest & Administrative Charges
Authorities may apply interest and administrative fees. These must comply with statutory guidance and be clearly explained.
When a DPA May Be Refused
Refusal must be lawful and reasoned. If a council declines to offer a Deferred Payment Agreement, the decision can be reviewed.
When Property Decisions Go Wrong
Common issues include:
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Property included despite a qualifying relative
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Failure to apply the 12-week disregard
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Discretion not properly considered
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Incorrect valuation
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Refusal of a Deferred Payment Agreement without clear justification
Property decisions often determine whether savings are protected or exhausted.
Independent review can clarify whether statutory duties have been properly followed.
Concerned About the Family Home Being Included?
We provide:
✔ Independent Care Act analysis
✔ Review of property disregard eligibility
✔ Advice on Deferred Payment Agreements
✔ Representation in disputes
✔ Structured guidance before major financial decisions
Protect your position before agreeing to sale or charge
Frequently Asked Questions
Not automatically. Disregard rules or a Deferred Payment Agreement may apply depending on circumstances.
It is a mandatory period where the property must be excluded from financial assessment when someone first enters permanent care.
Yes. Where a spouse or civil partner remains living in the property, it must be disregarded.
Yes. Interest and administrative charges may apply, but these must comply with statutory guidance.
Yes. If the valuation appears incorrect or inconsistent with market evidence, it can be reviewed.