A PropTech firm claims agents are currently undervaluing properties in London because of what it calls “outdated and inaccurate property measurement techniques used to create floorplans.”
The company claims outdated measurement techniques can have a significant impact on the accuracy of property value and says properties in the capital are “mis-sold” by £33,800.
Specifically, the company claims around one in eight properties in its study had an area discrepancy of at least 100 square feet.
The average discrepancy across all properties was 54 square feet.
The firm, called Spec, says its study has found that in 60 per cent of cases, floor plans over-stated the size of the properties. The claim from the company appears to suggest that the error is only one way - in undersizing, and thus undervaluing, the property.
The firm’s senior advisor, Anthony Browne, says this is “the great hidden scandal in the property market” and says it is ridiculous that when people buy a pint of beer they can rely on getting the amount for which they pay, but that this is not the case with property.
Browne says: “For prospective homeowners, it is essential that they obtain accurate size measurements for properties that they are buying. Previously that was technically difficult and prohibitively expensive, but with new 3D capture technology … it is now quick and affordable to provide highly accurate floor plans, giving buyers and sellers peace of mind about the true size of their property."