Regulations, which came into effect in October 1991, provide that where a pensioner, or a person of pension age in receipt of a means tested payment from the Department, sells his or her principal residence and either buys or rents alternative accommodation or moves into a private nursing home, the income derived from the sale shall be exempted from the means test in relation to the pension, or other relevant payment, up to a limit of £75,000. Where the applicant has a spouse he-she must also be over 66.
In relation to statistics published by the Department of the Environment and Local Government, the average price of second hand houses for which loans were approved has risen from £51,452 in 1992 to £67,438 in 1996. This relates to the country as a whole and there may be substantial divergences between different areas. As can be seen the £75,000 limit was above average in relation to average house prices as calculated by the Department of the Environment during that period. I have no proposal to revise the limit but I will be keeping the matter under review.