The gap between seller asking prices and independent property valuations has doubled over the past year, according to new research from TwentyCi, increasing the risk of mortgage down-valuations and delayed transactions.
The latest Q2 2026 Property & Homemover Report found that newly listed homes are now being marketed at an average of 11.6% above their Automated Valuation Model (AVM) value, up from 5.7% a year earlier.
TwentyCi said the widening disconnect between pricing expectations and underlying market values could create additional challenges for lenders and brokers as more mortgage applications encounter valuation shortfalls.
The report also found the proportion of homes listed at 10% or more above their independent valuation has increased by 9.7% over the past 12 months.
REGIONAL DIFFERENCES
The East of England recording the largest increase in over-priced properties, followed by Outer London and the South East. Inner London and the North East were among the few regions where asking prices remained more closely aligned with market values.
TwentyCi warns that inflated listing prices can distort perceptions of market performance if headline asking price data is used without reference to independent valuations.
WARNING SIGNS
Colin Bradshaw (main picture, inset), Chief Executive Officer at TwentyCi, says: “While a busy market is always welcome, this widening gap between what sellers want and what properties are actually worth should serve as a clear warning sign for the lending community.
“If listing prices drift too far from independent AVM values, down-valuations will inevitably spike. For lenders, this means clogged pipelines, increased administration, and higher fall-through rates. Relying solely on listing-led indicators right now is a risk; robust, independent valuation data has never been more critical to protect lending security.”
The findings come as lenders continue to monitor affordability and valuation risk in a market where buyer demand remains resilient but pricing expectations have become increasingly detached from underlying values.
