Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Down-Valuation Risk Rises as Pricing Gap Hits 11.6%, Reports TwentyCi

The average newly listed UK property is now priced 11.6% above its independent automated valuation model (AVM) value, according to TwentyCi’s Q2 2026 Property & Homemover Report. This gap has doubled in the past year, rising from 5.7% in Q2 2025, and is contributing to a heightened risk of down-valuations for mortgage lenders and brokers.

TwentyCi’s report highlights that the widening gap between listing prices and AVM values is leading to increased risks across mortgage pipelines. These risks include down-valuations, stalled cases, renegotiations, and higher fall-through rates. The share of properties listed at 10% or more above their true market value has also increased, up 9.7% year-on-year.

Regionally, the East of England saw the largest increase in overpricing, with volume up 19.3% year-on-year. Outer London followed with a 17.8% rise, and the South East recorded a 16.7% increase. In contrast, Inner London and the North East experienced price corrections that brought listing prices more in line with actual market values.

The report notes that headline market data is often based on listing prices, which can present an overly optimistic view of market conditions. Inflated listing prices can skew automated lending metrics, requiring underwriters to reconcile asking prices with independent valuations.

For letting agents and inventory clerks, these trends may impact transaction timelines and the reliability of agreed prices, as higher fall-through rates and renegotiations become more common in areas with significant overpricing.