Artificial Intelligence is changing many industries, and property is no exception.

Today, anyone can ask an AI chatbot to estimate the value of a house, shop, office or investment property and receive an answer in seconds. The response is often delivered with impressive confidence and apparent certainty.

The question is: does that confidence translate into accuracy?

In our experience, the answer is often no.

A Number is Not the Same as a Valuation

Modern AI tools are extremely good at presenting information in a convincing way. However, producing a figure and undertaking a professional valuation are two very different things.

A valuation is not simply an exercise in arithmetic. It requires:

• Professional judgement
• Analysis of market evidence
• Understanding of legal interests and tenure
• Knowledge of local issues
• Experience of how buyers, occupiers and investors behave

These are factors that cannot be fully captured from publicly available data.

Perhaps more importantly, the valuer takes professional responsibility for the opinion expressed. AI does not.

The Role of Automated Valuation Models (AVMs)

Automated Valuation Models (AVMs) have existed for many years and are increasingly used throughout the property industry – particularly by lenders.

AVMs analyse large quantities of data to produce estimated values and can be useful in certain situations, particularly where there is an abundance of comparable evidence and the properties involved are relatively standard.

However, AVMs have limitations.

They can struggle with:

• Unusual properties
• Mixed-use assets
• Commercial investments
• Rural property
• Properties with development potential
• Assets where condition or legal matters significantly affect value

An AVM may be able to identify broad market trends, but it cannot inspect a property, understand a tenant’s covenant strength or appreciate the difference between one parade of shops and another.

Human Valuations Drive AVMs – Not the Other Way Around

There is a common misconception that technology has somehow replaced traditional valuation practice.

In reality, the opposite is true.

AVMs and AI systems rely heavily upon data generated by human activity. Transaction evidence, survey inspections, lending valuations and professional advice all contribute to the datasets that enable these systems to function.

In other words, human valuations inform and support automated models.

Without professional valuers undertaking inspections, analysing transactions and providing evidence-based opinions, the quality of those systems would deteriorate over time.

Artificial intelligence does not exist independently of the valuation profession; it builds upon the work carried out by surveyors.

Commercial Property Presents Particular Challenges

Commercial property is especially difficult to value using AI alone.

Unlike residential property, there is often limited transactional evidence and no two investments are truly identical.

Value may be influenced by:

• Lease terms
• Rent review provisions
• Tenant covenant strength
• Yield profiles
• Alternative use potential
• Repair liabilities
• EPC considerations
• Development opportunities

A mixed-use investment in Lancaster, an industrial unit in Preston and a neighbourhood retail property in Blackpool may all require completely different approaches to valuation.

These nuances are difficult for automated systems to interpret and explain why experienced professional judgement remains central to the process.

Local Knowledge Still Matters

Property markets are highly local.

Two seemingly similar properties may have very different values because of factors that do not appear in databases or online records.

Surveyors working within a region understand:

• Local demand and sentiment
• Micro-locations
• The impact of recent transactions
• Occupier requirements
• Investor appetite
• Factors affecting marketability

This local knowledge is particularly important across Lancashire and Cumbria, where values and market conditions can vary considerably between towns and sectors.

Why Professional Valuations Matter

In many cases, a valuation must withstand scrutiny from third parties.

Valuations are commonly required for:

• Inheritance Tax and probate
• Pension fund (SIPP and SSAS) purposes
• Secured lending
• Commercial acquisitions and disposals
• Matrimonial proceedings
• Expert witness matters

These are situations where accuracy matters and where the consequences of getting the figure wrong can be significant.

A confident-sounding answer generated in seconds is not necessarily a substitute for an inspection, evidence and professional accountability.

Technology is a Tool – Not a Replacement

Technology will undoubtedly continue to influence the valuation profession and improve efficiency.

However, the fundamentals of valuation have not changed.

Property remains a market of individual assets, imperfect information and human behaviour.

That is why experience, judgement and local knowledge continue to matter.

RICS Valuations Across Lancashire and Cumbria

At Armitstead Barnett, we provide independent RICS valuations for residential, rural and commercial property across:

• Garstang
• Clitheroe
• Kendal
• Burscough

And throughout surrounding areas including Preston, Lancaster, Fylde, Lytham, Leyland, Chorley and Blackburn.

We regularly advise clients in relation to inheritance tax and probate valuations, SIPP and SSAS pension fund valuations, secured lending and commercial transactions.

While technology continues to evolve, one thing remains constant: understanding property is about far more than simply generating a number.

It is about understanding markets, evidence and the factors that make every property unique.