It's a funny one.
Imagine if the policy already existed and the Tories said they were going to remove consideration of property equity from the calculation. Left Labour types would be going mad, saying it was a gift to rich property owners, an outrage, a favour for the Shires etc. When the Tories introduce it, it's a "Dementia Tax" (possibly one of the most callous, uncaring and insensitive pieces of spin I can think of).
This whole issue touches on the previous discussion about the NHS and the difficulty of funding ever older populations through their health and social care needs. Fundamentally, I think it's a bit perverse to means test based only on liquid cash and not broader wealth. Presumably, though, there are ways round this involving intra-familial transfers of property....