Care Home Costs by Region UK: 2026 Data

Care home costs in England vary by as much as £682 per week depending on where you live. A nursing home placement in the South East averages £1,579 per week, while the same care type in the North East costs approximately £1,098 — a difference of £25,012 per year (Laing Buisson Care Homes for Older People UK Market Report, 35th Edition, 2025). That gap is wider than ever, driven by diverging property values, staff wages, and local authority fee rates.

This guide breaks down care home costs by English region for 2026, covering residential, nursing, and specialist dementia care. It also explains why costs vary so dramatically, what funding is available, and how NHS Continuing Healthcare can eliminate fees entirely for families whose relative has a primary health need.

TL;DR: UK care home costs range from £897/week in the North East to £1,579 in the South East for nursing care. The national average is £1,128/week for residential and £1,372/week for nursing. NHS Continuing Healthcare covers 100% of care costs — no means test, no asset threshold — yet most qualifying families are never assessed (Laing Buisson, 35th Edition, 2025).

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What Are the National Average Care Home Costs in 2026?

The UK national average for residential care in 2026 is approximately £1,128 per week — £58,656 per year. Nursing care averages £1,372 per week, and specialist dementia care in a residential setting costs around £1,295 per week (Laing Buisson, 35th Edition, 2025). These figures represent self-funder rates, which run roughly 40% above council-funded placements.

Here's what each care type costs at the national level:

The jump from residential to nursing care adds approximately £244 per week — reflecting the cost of registered nurses on site around the clock. Dementia care sits between the two for residential settings, but the nursing variant is the most expensive category at £1,467 per week.

These averages mask enormous regional variation. A family in the South East paying for nursing care spends £25,000 more per year than a family in the North East — for broadly similar clinical provision. The difference is almost entirely driven by property costs and staff wage expectations, not care quality.

Annual costs put the scale into perspective. Even residential care — the cheapest option — runs to nearly £59,000 per year. A three-year placement at the nursing care average totals over £214,000. For families on a fixed income, that pace of spending is unsustainable. It's why understanding every funding route matters — particularly NHS Continuing Healthcare, which removes fees entirely.

Citation capsule: The UK average weekly care home cost in 2026 is £1,128 for residential care and £1,372 for nursing care, with dementia nursing at £1,467. Annual costs range from £58,656 to £76,284 depending on care type, according to Laing Buisson's 35th edition report (2025-26 data).

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How Much Do Care Homes Cost by Region?

The South East is the most expensive region for all three care types, with nursing care averaging £1,579 per week — £82,108 annually. The North East is the most affordable at £897 per week for residential care, a saving of £415 per week compared to the South East's residential rate (Laing Buisson, 35th Edition, 2025).

The full regional breakdown for England:

South East and London

The South East and London consistently top the regional cost tables. A residential placement in the South East costs £1,312 per week — 46% more than the same care type in the North East. London sits just behind at £1,289 for residential care, though certain boroughs (Westminster, Kensington and Chelsea, Richmond) exceed even the South East average.

What's striking is the dementia premium. In both regions, specialist dementia care costs approximately £1,480–£1,500 per week. For families self-funding in these areas, the annual bill for dementia nursing care approaches £80,000.

The Midlands and North West

The middle-cost regions — West Midlands, East Midlands, and North West — cluster between £1,012 and £1,056 for residential care. These regions sit roughly 7–10% below the national average. Nursing care ranges from £1,234 to £1,278 per week.

For families in these regions, annual residential costs run to approximately £53,000–£55,000. Still substantial, but noticeably less than the South East's £68,000.

Yorkshire and the North East

Yorkshire and the North East offer the most affordable care home fees in England. Residential care in the North East averages £897 per week — under £47,000 per year. But "affordable" is relative. Even at the lowest regional rate, a three-year stay costs approximately £140,000.

Citation capsule: Care home costs in England vary by up to 46% between regions. The South East is the most expensive at £1,312/week for residential care, while the North East is the least expensive at £897/week. Annual spending ranges from £46,644 to £82,108 depending on region and care type (Laing Buisson, 35th Edition, 2025).

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Why Do Care Home Costs Vary So Much by Region?

Regional property values are the single biggest driver of care home cost differences — accounting for approximately 15–20% of the gap between the most and least expensive regions. CQC registration data shows that care home land and property costs in the South East are roughly double those in the North East (CQC, 2025).

But property is only part of the story. Five factors combine to create the regional cost gap:

Staff wages

Staff costs account for roughly 60% of a care home's operating expenditure (Laing Buisson, 35th Edition, 2025). The National Living Wage sets a floor of £12.21 per hour from April 2026 (GOV.UK), but care homes in the South East and London must pay significantly above that minimum to attract staff in a competitive labour market. A care assistant in London typically earns 15–25% more than one in the North East — and those wage premiums flow directly into fees.

Local authority fee rates

Local authorities negotiate rates with care homes for council-funded placements. These rates vary substantially by area and directly influence self-funder pricing. Where council rates are low — as in many northern local authorities — care homes compensate by charging self-funders a larger premium. The Competition and Markets Authority found that self-funders subsidise council-funded residents by an average of £266 per week across England (CMA Care Homes Market Study, 2017).

Property and land costs

A new-build care home in Surrey requires a land investment several times greater than an equivalent build in County Durham. Existing homes in the South East carry higher rents, mortgage costs, and insurance premiums. All of these costs are passed to residents.

We've seen families relocate a relative from the South East to the North West to reduce costs — a saving of over £15,000 per year in one case. But this isn't a decision to take lightly. Moving someone with dementia to an unfamiliar environment carries real clinical risks, and the disruption can outweigh the financial benefit.

Occupancy and demand

High-demand areas like Surrey, Hertfordshire, and parts of London have occupancy rates above 90%, giving homes less incentive to discount. In regions where supply exceeds demand, competition can moderate pricing.

CQC ratings and specialisation

Homes rated "Outstanding" by the CQC command a premium of 10–20% over those rated "Good" (Laing Buisson, 35th Edition, 2025). Specialist services — dementia units, end-of-life care, complex neurological conditions — also carry higher fees because of the trained staff, lower resident-to-carer ratios, and adapted environments they require.

Does a cheaper region mean worse care? Not necessarily. The CQC's own data shows no correlation between regional cost and quality ratings. Some of the highest-rated homes in England are in the North East and Yorkshire, where fees are lowest. What differs is the cost of delivering that care, not the standard of it.

Citation capsule: Staff wages account for approximately 60% of care home operating costs, and the National Living Wage floor of £12.21/hour from April 2026 disproportionately affects regions where care homes previously paid below that threshold. Property costs, local authority fee rates, and occupancy levels explain most of the remaining regional variation (Laing Buisson, 35th Edition, 2025; GOV.UK, 2026).

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How Can You Fund Care Home Costs?

Around 45% of care home residents in England self-fund their care — paying from savings, property, pensions, or a combination — because their assets exceed the £23,250 means test threshold (Laing Buisson, 35th Edition, 2025). Below that threshold, local authorities contribute, but families still face a shortfall. Only one route eliminates fees entirely.

Three principal funding routes exist:

Self-funding (assets above £23,250)

If your total assets — savings, investments, and property (with exceptions) — exceed £23,250, you pay the full care home fee. The upper threshold has been frozen at this level since 2010, and the planned increase to £100,000 under the Health and Care Act 2022 was cancelled in July 2024 (DHSC, 2026).

At an average nursing care rate of £1,372 per week, a self-funder's assets can deplete rapidly. A two-year placement costs approximately £142,700. Most families underestimate how quickly savings are consumed. To preserve the family home while paying fees, see our Deferred Payment Agreement family guide — the council-administered route that lets care costs accumulate as a charge against the property rather than forcing an immediate sale.

Local authority support (assets below £23,250)

Below £23,250, the local authority means-tests your relative and contributes. Between £14,250 and £23,250, a "tariff income" of £1 per week for every £250 of assets is applied. Below £14,250, the authority pays the full assessed contribution.

However, councils typically negotiate lower rates with care homes than self-funders pay. If your relative's preferred home charges more than the council rate, you may face a "top-up" — an additional weekly payment from the family to bridge the gap. For detailed guidance on the means test, see our care home costs guide.

NHS Continuing Healthcare (100% coverage)

NHS Continuing Healthcare covers 100% of care costs — including accommodation, personal care, and nursing — for people who have a primary health need. There's no means test, no asset threshold, and no upper limit on cost. It's available at any age.

CHC is assessed across 12 care domains using the Decision Support Tool, under the National Framework (2022). Approximately 60,000 people in England receive CHC at any one time (NHS England, 2023-24 data). Many more are likely eligible but have never been assessed.

Funded Nursing Care (partial contribution)

For people in nursing homes who don't qualify for CHC, NHS Funded Nursing Care provides a flat £267.68 per week contribution from the NHS toward the nursing element of care (GOV.UK, March 2026). It's not means-tested, but it covers only a fraction of the total bill — for the 2026 rate change and the eligibility detail, see our NHS Funded Nursing Care rate 2026 explainer.

Citation capsule: Approximately 45% of care home residents in England self-fund their care, paying from assets above the £23,250 means test threshold — a level frozen since 2010. NHS Continuing Healthcare is the only funding route that eliminates fees entirely, covering 100% of care costs for around 60,000 people in England with a primary health need (Laing Buisson, 35th Edition, 2025; NHS England, 2023-24).

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Is NHS Continuing Healthcare the Route Most Families Miss?

NHS Continuing Healthcare saves eligible families an average of £50,000 or more per year by covering 100% of care costs — yet around 80% of initial applications are refused (Independent Age, Turned Away report). The problem isn't that families don't qualify. It's that the assessment process systematically understates the health needs of people in well-managed care settings.

CHC isn't a benefit. It's a legal entitlement. If your relative has a "primary health need" — a level of need that goes beyond what a local authority can reasonably provide — the NHS is required to fund their care in full under the National Framework (2022).

Why does the rejection rate matter for care home costs?

Even in the North East — where residential care costs £897 per week — the annual bill of £46,644 is a significant burden for most families. In the South East, nursing care at £1,579 per week totals £82,108 per year. CHC eliminates this cost entirely.

The maths is straightforward. If CHC approval saves a family £57,096 per year in the cheapest region and £82,108 in the most expensive, even a 10% chance of success makes the application process worth pursuing. And the success rate is substantially higher than 10% when families prepare properly — collecting care records, structuring evidence by DST domain, and addressing the "well-managed needs" argument head-on.

How preparation changes outcomes

Poor preparation is the leading cause of CHC rejection, not ineligibility. Families who attend MDT assessments with organised, domain-by-domain evidence consistently achieve better outcomes than those who rely on the assessment panel to gather evidence for them. The National Framework (2022) is clear that families have the right to submit evidence and participate in the assessment process.

For an overview of the full CHC assessment process, see our CHC assessment guide. If you've already been refused, our appeals guide covers the local review and Independent Review Panel process.

Citation capsule: NHS Continuing Healthcare saves eligible families between £57,096 and £82,108 per year depending on region, by covering 100% of care home costs with no means test. Despite this, around 80% of initial CHC applications are refused — a rate that independent research attributes primarily to systemic under-assessment rather than ineligibility (Independent Age, Turned Away report; Laing Buisson, 35th Edition, 2025).

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How Do Care Costs Compare Across the Four Nations?

Scotland is the most generous of the four UK nations for social care funding, offering free personal care for everyone over 65 and a capital threshold of £35,000. England has the lowest effective threshold at £23,250 — frozen since 2010. Wales sits between the two at £50,000, the highest capital threshold in the UK (Senedd Research, 2025).

Each nation sets its own rules for means testing and personal care:

Scotland's free personal care

Scotland's Free Personal and Nursing Care policy means that anyone aged 65 or over receives personal care at home or in a care home without charge — regardless of assets. In 2026, Scotland pays £237 per week for personal care and £109 per week for nursing care, on top of any local authority contribution (Scottish Government, 2025). Accommodation costs are still means-tested.

Wales: the highest capital threshold

Wales increased its upper threshold to £50,000 in 2023 — more than double England's level. This means fewer Welsh residents face full self-funding. However, personal care in Wales remains means-tested, and care home fees in Wales average slightly below English rates due to lower property costs.

Northern Ireland

Northern Ireland mirrors England's thresholds at £23,250 and £14,250. The social care system in Northern Ireland operates under the Health and Social Care Board, which is being restructured. CHC equivalents exist under a different name but follow similar principles.

CHC across all four nations

NHS Continuing Healthcare (or its equivalents) exists across all four nations. The specific assessment tools differ slightly, but the core principle — that people with a primary health need are entitled to fully funded care — applies throughout the UK. In Wales, this is administered by Local Health Boards rather than ICBs.

Citation capsule: Wales has the UK's highest care home capital threshold at £50,000, while England's threshold remains frozen at £23,250 since 2010. Scotland provides free personal care for everyone over 65 regardless of assets. NHS Continuing Healthcare or its equivalent eliminates care costs entirely in all four nations for those with a primary health need (DHSC, 2026; Scottish Government, 2025; Senedd Research, 2025).

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What Should You Do Next?

The average care home placement in England now costs between £58,656 and £76,284 per year depending on care type — and substantially more in the South East and London (Laing Buisson, 35th Edition, 2025). These are costs that deplete family savings quickly, often faster than anyone expects.

But the cost isn't inevitable. NHS Continuing Healthcare exists specifically to fund care for people whose needs are primarily driven by health conditions. If your relative has complex, multiple, or unpredictable health needs — particularly conditions like dementia, stroke, Parkinson's, or advanced neurological disease — CHC may cover everything.

Here's where to start:

1. Check eligibility: Use our free CHC Eligibility Screener to see whether your relative's needs match the 12-domain criteria. It takes five minutes.

2. Understand the funding landscape: Read our care home costs guide for a full breakdown of means testing, local authority support, and the self-funding threshold.

3. Learn about CHC: Our CHC funding guide explains the assessment process, the 12 care domains, and what "primary health need" means in practice.

4. Know how to reduce costs: Our guide on avoiding care home fees covers legitimate routes — including CHC, funded nursing care, and tenants in common arrangements.

5. Prepare for assessment: If you're already in the CHC process, preparation is everything. Families who gather structured evidence by DST domain consistently achieve better outcomes.

Whatever region your relative is in — from the North East to the South East — the principle holds: care home costs are high, but the right funding route can reduce or eliminate them entirely. The first step is understanding what's available.

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Data in this article is drawn from the Laing Buisson Care Homes for Older People UK Market Report (35th Edition, 2025), GOV.UK publications, and NHS England statistics. Regional figures are approximate self-funder averages and will vary by individual care home, location, and care needs. This article does not constitute financial or legal advice. Content was last reviewed in April 2026.