Property market insiders have reported a rise in overvaluations, where estate agents give inflated and unrealistic listing prices to win business. Weaker consumer sentiment and higher mortgage rates, caused by the war in the Middle East, have created a slower market with fewer transactions—conditions ripe for overvaluations as agents compete for fewer sales.
Brokers Speak Out
Shaun Sturgess, director of Swansea-based Sturgess Mortgage Solutions, said: "Overvaluations are undermining the UK property market and they're on the rise. They're one of the most damaging and underreported problems. Every overvalued instruction sets a transaction up to fail." He added that when lenders' independent valuations reveal the truth, deals collapse, leaving buyers with lost costs for searches and surveys.
Evren Ergin, founder of ValuQ, described overvaluations as "the most expensive compliment a homeowner will ever receive." He noted that the incentive system rewards winning listings, not accuracy, and suggested comparing valuations from competing agents backed by sold-price evidence.
Market Slowdown Fuels Problem
Martin Rayner of Compton Financial Services said overvaluations become more common when the market slows. He cited a client whose property worth £1.6-1.7m was valued at £2m by an agent using a non-comparable sale. "Overvaluations waste everyone's time," he said.
Nouran Moustafa of Roxton Wealth called overvaluations "one of the reasons the property market feels so messy." She stressed that in 2026, with a price-sensitive market, lenders are cautious and surveyors need evidence. "You cannot just price a house based on vibes," she said, recommending sold comparables over dreams.
London Particularly Affected
Thomas Boughton of Artillium Real Estate Finance said overvaluations are rife in London, where sellers get unrealistic expectations and buyers face down-valuations. He advised obtaining an independent valuation before marketing to avoid disappointment.
Simon Bridgland of Charwin Private Clients suggested regulation and proper qualifications for estate agents, proposing they become market-driven surveyors to address the issue.
