It you gifted your house to your children in a bid to reduce the value of your estate, this becomes what is known as a Potentially Exempt Transfer (PET) for the purposes of Inheritance Tax (IHT). This means that if you live for 7 years after the transfer of the property it falls out of your estate for IHT purposes. If you die within 7 years, the property falls back into your estate but on a sliding scale over the 7 year period.
You must remember that by gifting the property you are not entitled to any rental income from it or any proceeds of a sale.
If you sign over your house but continue to live in the property, it is then a Gift With A Reservation Of Benefit (GWROB), in other words you reserve the right to benefit from the property. The property then remains part of your estate on your death, even if you live longer than 7 years from the transfer.
One way to overcome this issue is to pay rent to your children, but it needs to be a commercial market rent, not a reduced rent or token gesture. This will remove it from your estate for IHT but your children will have to declare the rent received as taxable income.
You have to remember that you are no longer the legal owner of the property and as such, you could be evicted by your children. Your children have the right to sell the property too.
There are other risks too, if one of your children divorces, they may be forced to sell. Equally if you child had an issue with bankruptcy, the property could be claimed by creditors seeking to claw back money.
As well as IHT issues, you need to consider capital gains tax. Although you main home may be covered by Principal Primary Residence (PPR) relief, a second home/property would not.