The number of care home residents currently stands at about 400,000. However, with an ageing population, it is expected to grow substantially and it is predicted that by 2031 there will be a quarter of a million requiring care which could rise to a staggering 1.5 million by 2081. Likewise the costs of caring for the elderly will rise dramatically; currently it is estimated to amount to £6.36bn but the figure is expected to almost double by 2026.

Figures from the Office for National Statistics and the Land Registry for 2010 show that the over-65s currently own £765 billion worth of unmortgaged property in Britain and there appears to be a growing acceptance that housing wealth will increasingly have to be used to pay for long-term care. Ros Altmann, director-general of Saga, said that she would like to see more people getting used to the idea of moving to a smaller property before people get to the stage where they can't cope. She added that there are too many elderly people living in homes too big for their needs, only to find that when the time comes they don't have the money to pay for their care.

The decision on leaving a house after so many years to move into residential accommodation is a traumatic one but is exacerbated by the costs involved in doing so. The cost of care homes varies throughout the country with the average annual expenditure being £30,000. However the more expensive ones in the South East can cost as much as £85,000 a year, so it is not a decision to be taken lightly, especially for those who have spent years saving for their retirement.