LPS capital value vs market value in Northern Ireland

Is the LPS capital value what my house is worth today?

No. The domestic capital value published by Land & Property Services (LPS) is a valuation for rates. The current domestic list uses values at 1 January 2005. It is not a current estate-agent appraisal, an asking price or the amount a buyer has agreed to pay.

If you are checking a home in Derry or Londonderry, label the figure before using it. A rates record can be useful information about the property, but it answers a different question from “what could this house sell for now?”. A large difference between the two figures does not, by itself, show that either is wrong.

What does the domestic capital value measure?

The Department of Finance says the current domestic valuation list took effect on 1 April 2007 and is based on capital values at 1 January 2005. Domestic properties are assessed in comparison with similar properties in their locality. Associated domestic garages and stores are included in the assessment.

nidirect explains that the assessment assumes average internal repair and fittings. Size, property type, location and domestic outbuildings are among the factors considered. A home built after 2005 is still assessed by reference to comparable properties valued at that date.

Keep domestic capital value separate from the net annual value used for non-domestic property. A business valuation or a headline about non-domestic revaluation should not be treated as a new selling-price estimate for your home.

How to check an LPS property valuation

Use the official LPS property search and enter the postcode, adding the house number where helpful. The service also offers an advanced search and a map. Open the correct address and check the property details before recording the capital value.

The service lets you view nearby properties and the annual rates calculation. Record those as separate figures: capital value is not the annual bill. If the property is a flat, a divided building or a house with an annexe, take particular care that you have selected the right record.

Save the address, the date you checked and a link to the record with your notes. That makes it easier to explain which figure you mean when speaking to an agent, surveyor or LPS.

Start at the official LPS property valuation search.

Can I multiply the capital value to estimate a selling price?

Do not rely on a fixed multiplier. There is no property-specific conversion in this guide from a 2005 rates value to a current sale price. Two homes with similar capital values can now differ in condition, accommodation, alterations and appeal to buyers.

For example, imagine two otherwise similar homes where one has been extended and the other needs substantial repairs. Applying the same multiplier to an old figure would not tell you how buyers assess those differences today. This is an illustration, not a claim about a particular Derry sale.

A current appraisal needs relevant market evidence and a judgement about how closely the comparison properties match. Ask about the dates, locations, condition and price status of those comparisons. An advertised price and a completed sale are different evidence.

Our guide to sold house prices in Northern Ireland explains the evidence available and its limits.

What if the LPS figure or property details seem wrong?

Check the official domestic valuation review guidance if you believe the assessment is incorrect or the property has changed. nidirect says you should continue paying rates while LPS processes a review. A difference from an estate-agent appraisal alone does not establish an error, because the valuations have different purposes and dates.

House Price Derry cannot amend an LPS record or decide a rates review. Keep that enquiry with LPS, and use a current market appraisal separately when planning a sale.

Read the official domestic valuation and review guidance for the appropriate next step.

Which valuation should a Derry seller use?

Keep three clearly labelled entries in your planning notes: the LPS capital value for rates, an online guide range, and a local appraisal for the sale. Note the source and date of each. They should not be presented as three competing offers for your house.

Use House Price Derry for an initial guide, then discuss the actual property and current comparisons with a local agent before choosing an asking price. The online estimate is not a formal RICS valuation. Read the methodology to see how it is produced.

Enter your name and email to view the guide range and receive your report. House Price Derry follow-up is optional, and estate-agent contact requires a separate choice naming the agent.

Check your Derry house valuation guide using your postcode and property details.

Read how the estimate works before using it to plan a sale.