LPS capital value vs house value: why they differ

What the LPS capital value actually is

LPS assessed every domestic property in Northern Ireland at what it would have sold for on 1 January 2005. That figure is the basis for your rates bill. It has not been updated for market movement since, so it tells you what your home was judged to be worth more than two decades ago — not what a buyer would pay today.

Why it diverges from today's value

The Derry market has moved a long way since 2005. The official UK House Price Index puts the Derry City and Strabane all-property average at £185,356 for Q1 2026, with growth of 10.2% in the last year alone. A 2005 anchor without that market movement applied will usually sit far below today's realistic guide price. Improvements made since 2005 — extensions, renovations, conversions — also never show up in the frozen capital value.

How a 2005 anchor can still be useful

Used correctly, the capital value is a helpful starting point rather than an answer. Where House Price Derry can match a licensed LPS record to the address, the valuation engine uses that 2005 anchor and applies official market movement since the valuation date. The result is still labelled as a guide because condition, improvements, layout, and current buyer demand can move a real sale away from the model.

What to do instead of reading your rates bill

• Treat the LPS capital value as a rates figure, not a sale price.
• Start from official market data: the Derry City and Strabane HPI average and the composite for your property type.
• Get a guide estimate narrowed by postcode, house number, and property type.
• For a sale, remortgage, or legal decision, use a qualified in-person valuation — no online figure replaces that.