Under Action 19.8 in the Housing for All Strategy, the Department of Health has committed to develop a mechanism in relation to the rental of vacant properties "in a way that is targeted, equitable, evidence-based and provides appropriate safeguards for vulnerable older people". Complex policy questions are currently being resolved in order to meet these criteria and mitigate the high risks and costs associated with unintended consequences - including the risks that the Deputy mentions - with a view to introducing legislation as soon as possible once this is complete.
The Department of Health and the Department of Housing, Local Government and Heritage and other Departments have met to discuss the matter a number of times and continue working together on developing a policy in relation to the treatment of rental income. I expect to be in a position to bring legislation forward in the coming months.
It is also worth noting changes that have been introduced relating to the sale of a residence. Within the NHSS, the asset value of a resident's home, known in the Scheme as the "principal residence", is assessed for 3 years, with 7.5% of its value going towards the cost of care (3.75% in the case of a couple). After 3 years on the scheme, the value of this property is no longer assessed. In practice, this generally reduces the nursing home fees of those maintaining their home, from year four onwards. However, under previous rules, if it was sold, the resulting cash asset was assessable in full for the entire length of stay in care. This could act as a disincentive for those who might otherwise consider selling their homes. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person will be able to sell their home without incurring additional fees from the fourth year onwards.
