Estate agents using AI to mislead homebuyers ‘raise transparency issues’

Paul Offley

Propertymark and The Guild of Property Professionals have responded after concerns were raised about estate agents using artificial intelligence to alter property photographs in ways that could mislead prospective buyers.

The issue came under scrutiny following a report in The Times yesterday which highlighted the growing use of AI-generated images in property marketing, including examples where rooms appeared larger or in better condition than they were in reality.

One case involved a property marketed by Winkworth in Tooting, south-west London. A prospective buyer claimed the flat looked noticeably different when viewed in person compared with the online images. The listing included a disclosure stating that some photographs had been enhanced using AI.

Following criticism online, Winkworth removed the AI-generated images. The agency subsequently acknowledged that one altered image omitted a chimney breast and that some rooms appeared larger than they were in reality.

The case has reignited debate over the use of AI in property marketing, with industry bodies warning that while the technology can be a useful tool, agents must ensure that marketing materials provide an accurate representation of a property and do not mislead consumers.

Paul Offley, compliance officer at The Guild, told EYE: “AI can provide significant benefits to estate agents, however, there are important compliance and consumer protection considerations. Agents should ensure that any AI-generated content does not inadvertently misrepresent a property’s condition, size, features, location, or surroundings, and it is important that any such copy is reviewed by the valuer/negotiator who has inspected the property, and that the property details are approved by the seller, before any publication.

“The use of AI-enhanced or AI-generated images may also raise transparency issues and consumers should not be misled into believing that digitally altered images accurately reflect the current state of a property. Sometimes this can be beneficial to allow a potential buyer to consider the possibilities of development, but this should always be made 100% clear in any material where such images are used. The consumer must always be made aware.

“Consumer trust depends on property particulars being accurate, clear, and not misleading. Existing obligations under DMCC requirements apply regardless of whether content is created by a person or an AI system.

“Estate agents remain responsible for ensuring that marketing materials are truthful and that any material information which could affect a consumer’s transactional decision is disclosed. The Guild includes such advice as part of its ongoing compliance support to its members

“Remember AI is to support, not to replace the work and service of the estate agent.”

The Times also identified another Winkworth listing for a two-bedroom flat in Tooting which included the statement: “Some of these images have been staged with AI.”

However, the disclosure appeared in white text against a white background within the property’s PDF brochure, making it effectively invisible to readers viewing the document normally. According to the newspaper, the wording could only be located by searching the underlying text within the PDF.

The case has highlighted concerns over how AI-generated or AI-enhanced images are disclosed to prospective buyers, particularly as the technology becomes increasingly common across the property sector.

Estate agents are using AI tools to digitally furnish empty rooms, improve image quality, alter layouts and generate property descriptions. Proponents argue that such technology can help buyers visualise a property’s potential, particularly where homes are vacant or in need of refurbishment.

However, consumer groups and industry observers have warned that problems can arise when alterations materially change a property’s appearance or when disclosures are not sufficiently prominent.

Nathan Emerson

The debate has prompted renewed scrutiny of existing rules around property marketing, with questions being raised over where the line should be drawn between legitimate image enhancement and potentially misleading representation.

Nathan Emerson, CEO of Propertymark, told EYE: “Artificial Intelligence is becoming an increasingly valuable tool within the property sector, helping agents market homes more effectively and giving buyers a clearer vision of a property’s potential. From enhancing photography and improving floor plans to generating property descriptions and virtual staging, AI can save time, improve accessibility, and create a better overall customer experience.

“However, there are clear boundaries around how this technology can be used. AI should never be used to mislead buyers, create unrealistic expectations, or alter the condition or fundamental characteristics of a property. For example, digitally inserting furniture or objects into a room that could never realistically fit within the space, or modifying features in a way that changes the property’s true appearance, size, layout, or functionality, risks misrepresenting a property to potential buyers. Any images that have been created or altered using AI must be clearly labelled as AI-generated so consumers understand what they are viewing.

“Trust and transparency are fundamental in the property market. While innovation is being embraced, consumers must always be able to rely on listings being accurate, fair, and representative of the property they are viewing. AI should support informed decision-making, not distort reality.”

EYE approached Winkworth for comment.

The company, which has a franchise network of over 100 independently owned and operated Winkworth offices, said: “All offices are required by Winkworth Franchising Limited to disclose the use of AI imagery online and on all property details and must not misrepresent a property.

“We have spoken to the Winkworth Tooting office. They decided to remove some AI furnished images after a customer expressed disappointment during a viewing. The only change to the original images was the addition of soft furnishings, lights and other furniture,  similar to using real staging furniture. In one image, a chimney breast had been removed by AI but the sizes of the rooms and windows were not altered or misrepresented.

“The use of AI is to help customers visualise the potential of a property using digital tools. The Times referred to a brochure where the AI disclosure was not clear. This had been an error in the proofing of the document and has now been amended. The AI disclosure notice had been clearly present online. Winkworth operates to the highest professional standards, with extensive training for all our offices in every aspect of the business, including the use of AI.”

 

 

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One Comment

  1. EAMD172

    How stupid. I’ve always been a fan of excellent photography. However the idea is to help sell the property which means accurately representing the home in its best light. Not to make it look better than it is. This only leads to disappointed viewers and no offers. Even some professional photography is over-enhanced which whilst not being wrong, doesn’t help to sell it.

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