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.

FCA: AI Will Shift, Not Eliminate, Role of Intermediaries in Property Sector

Artificial intelligence (AI) is set to challenge traditional intermediation in property finance, but will not remove the need for human advisers, according to the Financial Conduct Authority (FCA). The FCA’s Mills Review highlights that AI could change how firms present information and interact with customers, but trust and preference for human advice remain key factors in complex transactions such as mortgages.

The Mills Review, produced by Sheldon Mills, executive director at the FCA, states that agentic AI could make it easier for customers to search and compare property finance products, potentially narrowing the information gap between firms, intermediaries, and customers. This may require firms to present product information and regulatory communications in ways that are understandable to both AI systems and humans.

The FCA notes that AI could make it more attractive for providers to serve customers directly. However, its research indicates that customers still prefer to speak to a human adviser for complex and high-value processes, such as securing a mortgage. The report also finds that customers are more likely to trust AI for lower-value financial services, or where the consequences of mistakes are less significant.

According to the report, 6% of consumers who responded had shopped for or used a mortgage or other property finance in the last 12 months, and of those, 18% had used AI during the process.

The FCA suggests that AI may not remove intermediation, but rather relocate it—from brokers and comparison tools towards AI agents, platforms, and data access layers that influence what consumers see and act on.

The Mills Review recommends that the FCA proactively adapt regulation to support safe and innovative AI adoption, while managing emerging risks. It also suggests reviewing how consumers use AI, considering the implications for competition, innovation, and consumer protection. The FCA is encouraged to scale up its AI Lab and consider leading a trusted framework for AI agent use in financial services.

These findings are relevant for UK letting agents and inventory clerks, as changes in how property finance information is accessed and presented could impact client interactions and expectations in the lettings sector.