"These tools can save time and provide a starting point, but they’re no substitute for local knowledge and real-world experience"
- Alto
A survey of 250 estate agents on the Alto platform reveals widespread concern that AI-powered automated valuation models (AVMs) routinely underestimate property values, potentially costing sellers tens of thousands of pounds.
According to the poll, 87% of agents feel these tools fail to capture a home's true worth, especially in Northern, lower-income, and rural areas. Despite this, 78% rely heavily on AVMs when pricing properties, and 23% say they ‘always’ use them. However, 73% admit they do not fully trust these valuations.
According to the findings, 28% regularly adjust AVM figures by between £10,001 and £20,000, while 10% amend valuations by more than £20,000. These adjustments highlight how inaccurate pricing based on generic data could cause sellers to lose significant sums.
Concerns about regional fairness also emerged. One in five agents believe rural properties are undervalued, and 11% say Northern or lower-income areas are ‘strongly undervalued’ by AVMs.
A spokesperson from Alto said, “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. Agents are telling us AI is undervaluing sellers’ homes – and we should be listening. These tools can save time and provide a starting point, but they’re no substitute for local knowledge and real-world experience. The risk is that homes are priced based on flawed data, and sellers lose out. We trust agents – and we believe they should be empowered, not replaced.”
Most agents (77%) think AI sometimes misses key factors influencing property value, particularly recent renovations, unique features, or the overall condition of a home. Other commonly overlooked elements include noise levels (29%), crime rates (26%), and economic conditions (24%).
Renovations and improvements that add value often go undetected, with agents highlighting extensions (26%), loft conversions (26%), and smart home technology (25%) as frequently ignored.
Valuations are especially inaccurate in rapidly changing markets (27%), rural locations (23%), and transitional neighbourhoods (21%).
Agents criticised AVMs for their general lack of accuracy (23%), particularly for unique properties (32%). They also noted the absence of a personal touch (21%), outdated data (20%), limited data sources (18%), and potential algorithmic bias (17%).
Despite these concerns, nearly 40% of agents acknowledge they may over-rely on AI tools, though two-thirds continue to use them primarily for the time savings they offer.
Regions reporting the highest rates of AI undervaluation include the North East (22%), East of England (22%), and Yorkshire and the Humber (21%). In the North East, 11% of agents say they often adjust AI-generated prices by £20,000 or more, increasing the risk that sellers miss out.
The Alto spokesperson added, “This just goes to show there are inconsistencies with this technology – across the country and when it comes to specific features. We need to ensure that we’re not losing our human touch and that people can trust in their estate agents during a time that can already be incredibly stressful.
"AI has its place, but it should be used to support professionals, not override them. Selling your home can be an emotional time and will only be more so if people feel they’re not getting what they truly deserve.”
