Survey finds widespread concerns over automated property pricing
A majority of estate agents believe automated valuation models (AVMs) powered by artificial intelligence (AI) are routinely setting property prices too low, according to a new poll.
The survey of 250 UK estate agents, conducted by estate agency platform Alto, found that 87% of agents think AVMs are undervaluing homes, especially in northern regions, rural areas and lower-income communities. Despite these concerns, 78% said they still rely on AVMs when determining listing prices, with 23% stating they use the tools for every valuation.
However, 73% admitted they do not fully trust the figures generated by the technology. Nearly a third of respondents said they often adjust AVM estimates by between £10,001 and £20,000, while 10% said their changes exceed £20,000.
The findings point to the risk that sellers may be losing out financially when valuations are based primarily on automated systems that may not consider local nuances.
“AI is encroaching more and more on so many areas of our lives, but housing valuations isn’t one that usually springs to the front of people’s minds,” a spokesperson for Alto said. “Agents are telling us AI is undervaluing sellers’ homes – and we should be listening.”
According to the data, 77% of estate agents believe AVMs fail to consistently capture key details that can affect a home’s true worth. This includes recent renovations, unique features and general property condition — factors agents say are often overlooked.
Noise levels (29%), crime statistics (26%), and local economic conditions (24%) were also cited as important variables frequently missed in automated assessments. Specific homeowner investments, such as extensions (26%), loft conversions (26%), and smart home technology (25%) were among the most commonly ignored enhancements.
Agents reported the least accurate valuations tend to occur in rapidly changing markets (27%), rural communities (23%), and transitional neighbourhoods (21%).
The research also highlighted dissatisfaction with AVMs’ performance on unique or non-standard properties, with 32% criticising their reliability in such cases. Other concerns included the lack of a personal touch (21%), outdated information (20%), limited data sets (18%), and potential algorithmic bias (17%).
While 66% of agents continue using AI tools primarily for time-saving purposes, 37% acknowledged that the technology may be overused across the industry.
Regional differences were also evident. In the North East, 11% of estate agents said they typically adjust AVM valuations by over £20,000. Undervaluations were also frequently reported in the East of England and Yorkshire and the Humber.
“This just goes to show there are inconsistencies with this technology – across the country and when it comes to specific features,” Alto said. “AI has its place, but it should be used to support professionals, not override them.”
The survey was based on responses from 250 UK estate agents.
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