A UK property sourcing fee is typically either a flat fee of around 2,000 to 6,000 pounds, or a percentage of the purchase price, usually 1.5% to 3%. A small reservation fee of 500 to 1,500 pounds is normal to secure a deal, but you should never pay the full fee upfront. The balance is tied to exchange or completion. Here is what you are actually paying for, and how we charge.
The two fee models
- Flat fee. A fixed amount per deal, commonly 2,000 to 6,000 pounds for a standard residential purchase. Simple and predictable.
- Percentage of price. Usually 1.5% to 3% of the purchase price, more common on higher-value deals. The fee scales with the property.
More complex strategies, such as HMOs or commercial conversions, tend to cost more because they take more work to find and appraise.
What is normal upfront
A reservation fee of roughly 500 to 1,500 pounds to take a deal off the market is standard and reasonable. What is not reasonable is being asked for the full fee before anything is committed. Tie the bulk of the payment to exchange or completion, so the sourcer is paid for a deal that actually happens.
What the fee buys
At a minimum, a sourcing fee covers finding the deal, running the numbers properly, and negotiating the purchase. Refurbishment management and ongoing letting and management are usually separate services with their own fees. A good sourcer sets all of this out in writing before you commit, so you know exactly what you are paying for at each stage.
Red flags
- The full fee demanded upfront, before any deal is secured.
- No membership of a redress scheme, and no anti-money-laundering registration.
- Headline figures with no breakdown of real costs, or pressure to commit fast.
- No skin in the game, the sourcer takes a fee and disappears.
How we charge
We explain exactly how we are paid on a project before you commit to anything: the sourcing fee, and separately the cost of managing the refurbishment and the ongoing management. In most projects our own capital is in the deal alongside yours, so we are exposed to the same outcome you are. We would rather tell you a deal is average than dress one up to earn a fee.
This guide is general information, not financial advice. Fees vary by sourcer, region and strategy. Always agree the terms in writing before you proceed.
Common questions
How much is a property sourcing fee in the UK?
Sourcing fees are typically a flat fee of around 2,000 to 6,000 pounds for a standard residential deal, or a percentage of the purchase price, usually 1.5% to 3%. More complex deals such as HMOs or commercial property can cost more.
Should I pay a sourcing fee upfront?
Not the full fee. A small reservation fee of around 500 to 1,500 pounds to secure a deal is normal, but the balance should be tied to exchange or completion. Paying the whole fee before anything is committed is a red flag.
What does a sourcing fee include?
At a minimum, finding the deal, appraising the numbers and negotiating the purchase. Refurbishment management and ongoing management are usually separate services with their own fees, which should be set out clearly before you commit.
Is property sourcing regulated in the UK?
Sourcing agents must belong to a government-approved redress scheme, register with HMRC for anti-money-laundering supervision, and follow data protection rules. Check these are in place. A compliant sourcer is a basic sign of a serious one.
We set out exactly how we are paid before you commit, and in most deals our own capital is in alongside yours. No hidden fees, no full payment upfront.
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