What property sourcing costs in the UK

Fundamentals · 5 min read · Published June 2026 · Updated 4 October 2026

There is no fixed tariff for property sourcing in the UK. Property Redress, one of the two government-approved redress schemes, says the main fee is charged when the purchase goes ahead and is usually a percentage of the purchase price. A holding deposit to take the deal off the market is typically around 500 pounds and may be up to 1,500 pounds. You should never pay the full fee upfront. Here is what you are actually paying for, and how we charge.

How the fee is set

• Percentage of price. The usual model, according to Property Redress: a completion fee charged as a percentage of the purchase price, so the fee scales with the property.
• Fixed fee. Some sourcers quote a fixed amount per deal instead. Simple and predictable, as long as you know what it covers.

Nobody publishes an official average, and quotes differ a lot from one sourcer to the next. Compare written quotes for the same service, and ask for every figure with VAT included. The work, and so the quote, goes up with complexity: an HMO or a commercial conversion takes longer to find and appraise than a standard flat.

What is normal upfront

A holding deposit, sometimes called a reservation fee, to take a deal off the market is normal. Property Redress puts it at typically around 500 pounds and up to 1,500 pounds, and says it is often deducted from the completion fee if you go ahead. 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.

Ask in writing what happens to the deposit if you pull out, or if the seller does. Property Redress says its general approach to complaints is that a fee should only be kept if the deal completes.

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.

The second point is a legal one. Trading standards guidance treats property sourcing as estate agency work under the Estate Agents Act 1979. A sourcer dealing in residential property must belong to one of the two approved redress schemes, The Property Ombudsman or Property Redress, and an estate agency business must register with HMRC for money laundering supervision.

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. The letting agent's fee for ongoing management is in its own terms. 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.

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