Those with dementia should be allowed to make their own decisions on care, according to news official guidance.
The Supporting People to Live Well with Dementia report from the National Institute for Health and Care Excellence (NICE) also states that patients should be encouraged to maintain relationships and take part in their communities.
Sir Andrew Dillon, chief executive of NICE said the new guidelines will "help users and help providers to give the system the opportunity to apply resources to the best effect."
Currently there are over 800,000 people in the UK with dementia. Of that number 17,000 are younger people.
The number is expected to be higher than one million by 2021, with two-thirds of sufferers being female.
The condition plays a part in more than 60,000 deaths each year. However, The Alzheimer's Society estimates that delaying the onset of the condition by five years would cut deaths directly attributed to dementia to 30,000 a year.
Read more about Barchester's dementia care homes