Estate agents report AI valuation tools consistently undervalue UK properties
A survey of 250 UK estate agents found that 90% believe automated valuation models systematically undervalue properties, especially in rural and lower-income areas, potentially costing homeowners tens of thousands of pounds. Agents reported the tools overlook key factors like recent renovations and local conditions, though they continue to rely on them to save time.
What happened
A survey of 250 estate agents found that nine out of ten believe AI-powered automated valuation models (AVMs) consistently undervalue properties, particularly in Northern, lower-income, and rural areas.
Eight out of ten agents reported they heavily rely on these AI tools for property pricing, with three-quarters saying they don't fully trust the tools and must adjust the final calculations.
Reported impact
UK homeowners could potentially lose tens of thousands of pounds when selling their properties if valuations are inaccurate.
Estate agents in the North East reported having to adjust AI-generated listing prices by an average of £20,000 or more.
Index analysis
Estate agents cited concerns about algorithmic bias, limited data sources, and lack of personal touch in AI valuations.
The technology frequently overlooks crucial factors including recent renovations, unique features, property condition, noise levels, crime rates, and economic conditions. The least accurate valuations occur in rapidly evolving markets, rural areas, and transitional neighbourhoods.
Governance controls
A spokesperson from Alto stated that AI tools can save time and provide a starting point, but are no substitute for local knowledge and real-world experience, and that agents should be empowered rather than replaced.
Classification
Sources and evidence
Sources not yet published
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