Older people increasingly having to sell property to pay for care

As many as three quarters of older people could have to sell the homes in order to pay for care.

This is according to research by pensions and investments provider NFU Mutual, which states that over a million properties have been sold to fund care in the past five years.

On top of that, more than two million elderly people have had to use their life savings.

If the current trend continues, three in every ten people whose parents need to go into care will see the majority of their inheritance spent on associated costs.

Council budgets are currently being slashed for elderly care, meaning that many families are having to dig deeper to ensure their loved ones needs are met.

A Freedom of Information (FOI) request made by NFU Mutual found that 53 per cent of local authorities have cut funding for old age care.

"There's no magic bullet to avoid care home fees during your lifetime but, with careful planning, you could protect your share of the family's wealth after you die," said Sean McCann, personal finance specialist at NFU Mutual.

"Anyone who wants to see their life savings and the family home handed down to children and grandchildren needs to take professional advice to make sure they're not paying more tax than they need to."

At present, anyone in England with assets (including property) worth more than £23,250 is not eligible for financial support for care. This amount is due to be raised to £118,000 in 2016, with a £72,000 cap being put personal contributions to costs.

Alison Cook, director of external affairs at the Alzheimer's Society, said it was sad but not surprising to hear that one million families will have to sell their property in the next five years.

"While the government has started to address these issues, if we are to see a solution, we have to go further than token gestures and ensure that people aren't being financially penalised," she added.

Read more about Barchester's dementia care homes.