What is the value of my house?

Key takeaways

• You’ll need to know your home’s value if you plan to remortgage or sell it

• Your home’s rebuild value is different from its market value and is the value used to calculate the level of buildings cover you require

• You can usually get a local estate agent to value your home for free, even if you don’t plan to sell

• Council tenants planning to purchase through the Right to Buy scheme will need to know their home’s value

According to recent Halifax data, the average UK property was worth £299,313 in April 2026, compared with £299,609 in March. Annual growth slowed to 0.4%, down from 0.8% in March.

Whether you plan to stay in your home, remortgage or move, it’s important to know what your home is worth.

Why you need to know how much your home is worth

There are several reasons it’s a good idea to know your home’s value. These include:

Mortgage applications

Most homeowners remortgage every few years. How much your home is worth will impact the mortgage deals available to you.

As mentioned above, your loan-to-value ratio (LTV) shows how much money you’re borrowing, compared to the total value of your property and is expressed as a percentage.

So So if, for example, you’re buying a home worth £100,000 with a deposit of £10,000 and then borrowing the other £90,000, your LTV will be 90%. In most cases, a lower LTV can give you access to more competitive mortgage rates.

Your LTV can change over time. For example, if the value of the property in the example above rises to £150,000 by the time you come to remortgage, a £90,000 mortgage will mean you then have an LTV of 60%. This will usually mean you can find a cheaper mortgage rate.

Your mortgage lender will usually carry out a valuation when you apply for a mortgage. They may do this by using average sold prices in your area and other property data, or by visiting your property.

What is equity?

Equity in a house is the difference between the value of your home and how much you owe on your mortgage.

If your home is worth more than your outstanding mortgage amount, you are in what is known as positive equity. If your home is worth less than you owe on your mortgage, you are in negative equity.

Should I worry about negative equity?

If you don't plan to sell and are able to afford your mortgage payments each month, negative equity may not matter too much.

But if you do want to move house or remortgage, then negative equity can cause problems – because your property is worth less than the mortgage owed. In some cases, negative equity can make it difficult to sell your home as you would need to make up the shortfall in order to repay the mortgage lender. There’s also the risk you could face limited lender options and potential restrictions on moving deals.

Does my home’s value affect my home insurance?

Yes, your home's value will affect your home insurance premium. A higher value home typically means higher rebuilding costs in the event of a claim – this will impact your buildings insurance premium.

What you need to know is that when it comes to home insurance it’s your home’s rebuild cost which is the important figure, not market value.

According to MoneySupermarket data, households paid an average of £221.65^{^} for home insurance.

Factors influencing your home’s value

The price of a house is influenced by several factors. These include:

• Size and layout

• Location

• Whether it’s leasehold or freehold

• Risk of subsidence or flooding

• Storage and outdoor space

• Proximity to schools, transport links and other local amenities

• Potential for extension

• Aesthetic appeal

How much is my council house worth?

If you want to buy your council house via the Right To to Buy scheme, you’ll need to get a formal valuation carried out by the council.

The Right to Buy scheme allows eligible council tenants to purchase their homes at a discount. There are rules in place about who can benefit from the scheme, the discounts on offer and how/when the property can later be sold on. To find out more about the scheme, head here.

Comparing home insurance with MoneySuperMarket

MoneySuperMarket offers a convenient way to compare home insurance quotes and find the right policy at a competitive price. Simply provide us with a few details, and we’ll do all the hard work for you – giving you a list of quotes to choose from. Once you’ve picked your preferred deal, simply click through to the provider to finalise your purchase – enabling you to get the cover you need.