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Aipedia: Estate and letting agents
Most agents are not legally required to tell sellers and landlords they use AI, but RICS-regulated firms must give advance written disclosure. Clear terms help clients check AI-assisted work and make it easier to defend a complaint.
Part of: AI in estate and letting agents
In short
Outside RICS regulation, no estate agency rule found so far requires agents to disclose AI use. The TPO Code does not mention AI. But the Code does require sellers to agree particulars before marketing (7j), and an agent remains liable for statements it has reason to doubt (7m). Telling sellers that descriptions, floorplans or appraisals were AI-assisted makes their check more meaningful. RICS-regulated agencies must give advance written client disclosure of material AI use under the RICS AI standard, mandatory from 9 March 2026. Landlords should know when tenant referencing involves automated decisions, because UK GDPR safeguards may apply.
For most agents, there is no specific rule. The TPO Code of Practice for Residential Estate Agents (March 2026 edition) does not mention AI, and no AI guidance has been found from National Trading Standards or from Propertymark, whose conduct and membership rules govern its members. The position is different for firms regulated by RICS. The RICS standard Responsible use of artificial intelligence in surveying practice, mandatory since 9 March 2026, requires advance written disclosure to clients where AI materially affects service delivery, together with an AI systems register, a risk register and documented reliability decisions. See the RICS AI standard and PI.
Even without a rule, disclosure has practical value. A seller asked to approve particulars under 7j is more likely to read them carefully if told that a tool drafted them. A landlord who knows referencing is largely automated can decide whether to ask for extra checks. And if a dispute arises, an agent that explained its process at the outset is in a stronger position than one whose client first learns about AI from a complaint response.
Disclosure should be proportionate. Clients do not need a list of every spelling checker. They do need to know where AI shapes something they will rely on: the words and images used to market their home, the price advice they act on and the decision about who lives in their property.
Explain that descriptions, floorplans or image edits may be prepared with AI tools and checked by staff, and that the seller must tell you about anything inaccurate before marketing starts. Ask the seller to confirm in writing. See AI-written property descriptions.
Say whether you use automated valuation data, that your figure reflects your own judgement and comparables kept on file under TPO 4c, and that it is not a formal valuation. See AI valuations and appraisals.
Tell landlords what checks are automated, who makes the final decision and how applicants can ask for a human review, reflecting UK GDPR Article 22C safeguards. See AI tenant referencing.
Say what client and tenant data goes into AI tools and how it is protected, in line with TPO 1h and your privacy notice.
Illustrative: a landlord complains that a tenant passed referencing despite poor history. The agent's terms said only that "referencing is carried out by a third party". The landlord says they did not know the decision was largely automated and would have asked for a manual review. Clear terms would not remove the agent's duty, but they would have narrowed the dispute.
Disclosure does not change whether a negligence claim is covered, but it can affect the facts. Clear terms help show what the client agreed to, what the agent promised and who was responsible for checking. Insurers may ask how firms use AI, and written terms and records are useful evidence; see AI use and your PI: what to document and does estate agents' PI cover AI mistakes?.
How Apex helps: Apex arranges PI for estate and letting agents. A broker can discuss how your AI terms and records fit with your policy wording. See AI in estate and letting agency.
There is no specific requirement for most agents; the TPO Code does not mention AI. RICS-regulated agencies must give advance written disclosure under the RICS AI standard. Disclosure is good practice for everyone because it supports seller sign-off under TPO 7j.
Broad exclusions are unlikely to be effective against consumers and may be unfair. The agent remains responsible for what it publishes under TPO 7m and consumer protection law. Focus terms on explaining the process and the client's checking role.
Yes. Landlords should know what is automated and who decides. Applicants subject to solely automated significant decisions are entitled to information, representations, human intervention and contest under UK GDPR Articles 22A to 22D.
Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.
Start a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.
