You are here: Home - Retirement - Retirement planning - News -

Average care home stay will cost half the value of your home

0
Written by: Christina Hoghton
20/03/2017
If you need to enter residential care you can expect to pay total bills of between £50,000 and £93,000 depending on where you live in the country.

According to Royal London, it reckons that variations in house prices around the UK mean that this could amount to anything from 18% to 56% of the value of the average home.

For residents in the North East of England, where the average house price is just under £129,000, an average stay of 30 months in a residential home costing £554 per week in the region would eat up 56% of the value of their home.

At the other end of the scale, those living in London where the average house price is around £484,000, would find that 30 months of average residential care costs of £666 per week in the capital would only account for around 18% of the value of that property.

What if you stay longer than 30 months?

The length of time for which someone stays in a residential home can vary widely, and for those with the longest stays, the total bill can exceed the value of the typical house in several parts of the UK.

Evidence shows that 10% of residential home residents have a stay of 6.5 years or more. Royal London calculated that for residents of Wales, Northern Ireland and four English regions (North West, North East, Yorkshire and East Midlands) such long-stayers could face a total bill in excess of the value of the average home.

Debbie Kennedy, head of protection at Royal London said: “These figures are a shocking reminder of the huge costs which growing numbers of us will face if we need residential care later in life. Even an average stay in a care home can eat up half the value of your home, depending where you live in the country.

“The whole system is a lottery and we need to find better ways of supporting people to cope with these large and unpredictable bills.”

See YourMoney.com’s Will I have to pay my own care home fees? for more information.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

First Direct doubles Regular Saver interest rate to 7%

Starting Thursday 1 December, First Direct is joining those raising the rates on customers' savings, doubling...
First Direct doubles Regular Saver interest rate to 7%

Get £175 for switching to Halifax…but there’s a catch

Halifax said the payment for people who switch accounts starting tomorrow would be its largest such offer ever...
Get £175 for switching to Halifax...but there's a catch

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week