Property sourcing - also called deal sourcing or deal packaging - is the business of finding investment properties, often off-market, and packaging them for investors in exchange for a fee. It is a real business with real rules. This guide explains how sourcing works in the UK in 2026, and what separates a professional from a cowboy.
What a property sourcer actually does
A sourcer finds a deal - usually a motivated seller or a below-market, often off-market property - does the due diligence, negotiates terms, and packages it for an investor who completes the purchase. The sourcer's value is the legwork and the deal flow: finding what the investor cannot easily find themselves.
How sourcers get paid
The usual model is a fixed sourcing fee per deal, sometimes alongside a retainer. If a sourcer holds any client money, they must have Client Money Protection in place. Fees and terms must be set out in writing before any work begins, under the Estate Agents Act 1979.
The rules you cannot skip
Property sourcing is regulated. You must register for anti-money-laundering supervision with HMRC, belong to a government-approved redress scheme, and register with the ICO for data protection. HMRC has fined sourcing firms more than £1.1 million for AML failures alone and backdates penalties to the day you started trading. The full checklist is in our guide to becoming a property sourcer.
Where the deals come from
The hard part of sourcing is not the paperwork - it is deal flow. A sourcer is only as good as their pipeline of motivated sellers and off-market stock. That comes from direct-to-vendor outreach, off-market networks, distressed-property signals and data-led owner search.
Frequently asked questions
What is property sourcing?
Finding investment properties - often off-market and below market value - and packaging them for investors in exchange for a fee. It is also called deal sourcing or deal packaging.
How much do property sourcers charge?
Typically a fixed fee per deal, sometimes with a retainer. Fees must be set out in written terms of business before any work begins, and client money must be protected.
Is property sourcing regulated in the UK?
Yes. Sourcers must register for AML supervision with HMRC, join a government-approved redress scheme and register with the ICO, among other obligations. Non-compliance carries fines and bans.
Where do property sourcers find deals?
From direct-to-vendor outreach, off-market and investor networks, distressed and probate situations, auctions, and data-led owner search that targets motivated sellers.