That's not right. I'll double check about it later but as far as I'm aware a sale is not forced while it's being lived in by one of them.
Also, as a couple they are allowed £46k in savings....social services should have told them this.
Another thing...It's not straight forward selling a house when one of them suffers with dementia. It'll have to go to court...takes a long time and costs 1,000's in fees.
Someone needs to get a solicitors appointment straight away.