Latest Practicable Valuation (LPV)
The council's most recent rateable valuation of a property, used to calculate rates and provide a general indication of property value.
What is a Latest Practicable Valuation (LPV)?
The Latest Practicable Valuation (LPV) — also referred to as the council valuation, rating valuation, or RV — is the most recent assessment of a property's value carried out by the local council (or their appointed valuer). Councils are required to revalue all properties in their district at least every three years.
The LPV includes three components: capital value (the total value of land plus improvements), land value (the value of the land alone), and improvement value (the value of buildings and other improvements). These figures are used primarily to calculate council rates.
It's important to understand that the LPV is a mass-appraisal valuation, not an individual assessment. It's based on sales data and property characteristics, and it may not reflect the true market value of a specific property. Properties can sell for significantly more or less than their LPV depending on market conditions, property condition, and other factors.
Why It Matters for Due Diligence
While the LPV provides a useful reference point, don't rely on it as an accurate measure of market value. It can be a helpful starting point for understanding what a property might be worth, but it's no substitute for a professional market valuation or comparative market analysis from a real estate agent.
The LPV is most useful for comparing properties in the same area (are you paying a premium relative to other properties?) and for estimating council rates. If the asking price is significantly above the LPV, understand why — it may reflect genuine market growth or it may warrant further investigation.
How to Check
The LPV is available from your local council's website, usually by searching the property address. It's also shown on the LIM report. QV (Quotable Value) maintains a national database at qv.co.nz where you can look up most property valuations. Your real estate agent should also be able to provide the current LPV.
Frequently Asked Questions
Is the council valuation the same as market value?
No. The council valuation (LPV) is a mass-appraisal estimate used for rating purposes. Market value depends on current market conditions, property condition, and buyer demand. Properties regularly sell for more or less than their LPV.
Can I challenge the council valuation?
Yes. If you believe the LPV is incorrect, you can lodge an objection with the council within the specified objection period after a revaluation. You'll need evidence to support your case, such as recent comparable sales.
Related Terms
Capital Value (CV)
GlossaryThe council's assessed total value of a property, including both the land and all buildings or improvements, used primarily for calculating rates.
Land Value
GlossaryThe council's assessed value of the bare land only, excluding any buildings or improvements, used as part of the rating valuation.
Improvement Value
GlossaryThe council's assessed value of the buildings and other improvements on a property, calculated as the difference between capital value and land value.
Rates
GlossaryAnnual property taxes charged by your local council to fund public services, infrastructure, and local government operations.
LIM Report
GlossaryA Land Information Memorandum — an official council report summarising everything the council knows about a property.
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