Property value guide
Indexed value versus market value
An indexed value estimates what a past sale might be today if it moved with a selected market index. Market value asks what the particular property might sell for now, considering current comparables, condition, tenure and individual characteristics.
At a glance
Key facts
- Indexed value
- Historic price moved by a geographic index
- Market value
- Property-specific current evidence
- Best practice
- Use both and explain disagreement
A reliable process
How to approach the question.
- 01Match the historic sale to the correct property.
- 02Apply the most relevant published index series and dates.
- 03Compare the result with recent compatible sales.
- 04Investigate large disagreement before setting a working range.
Worked example
A home refurbished after its last sale
The index moves the old tired-condition price with the general market; it does not know the home was extended and refurbished. Current comparables should carry more weight for the changed property.
What this does not prove
- Broad indices do not capture street, plot or property-specific changes.
- Revisions can alter published HPI values.
- A very old sale usually deserves less weight.
Method used
- Resolve the property identity before joining sales, certificates, floor area and local market evidence.
- Prefer recent completed sales of genuinely comparable homes and explain each adjustment rather than averaging every nearby transaction.
- Use a range and reduce confidence where the evidence is sparse, contradictory or dependent on unverified property characteristics.
Primary sources and official guidance
Source scope, licensing, refresh expectations and known limitations are listed in the public data-source register.
Related guides
The UK House Price Index explained
Understand HPI geography, property categories, revisions and why index movement is context rather than a property-specific valuation.
How to value a property using comparable sales
Select, adjust and reconcile UK comparable sales by recency, location, property type, floor area, condition and tenure.
Apply this guide
Start with the exact UK address.