Environmental design and modification has emerged as an important intervention which can be used to enhance the social health of people living with dementia and to create more dementia enabling communities. To this end, environmental design and modification aim to minimise the difficulties and risks that people with dementia may encounter within different settings, and to facilitate and support engagement in meaningful activities through better accessibility and structural, technological or behavioural supports to promote quality of life. Whilst valid and reliable tools exist for auditing within residential care homes and public buildings, a gap exists in the availability of robust tools for use in the homes of community dwelling people with dementia. To address this gap, this paper documents the three stage methodology used by an interdisciplinary team to create a prototype home environment audit tool. This prototype tool aims to provide a person-centred, salutogenic framework to support auditing features of home environments and the tasks and objects that support life within the home against dementia design principles. Ultimately the aim is through use in the homes of people with dementia, the tool can be further developed to provide a reliable and valid set of scores which can be used to assess and monitor the relationship between design features and quality of life for people with dementia.