.avif)
-
17/12/25 3:30 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Ninety percent of property sourcing agents working in the UK are doing so illegally, it has been claimed.
Property sourcing is the act of pre-preparing properties as financial packages and then selling them on to investors and landlords as ‘ready to go’.
But a new report from the sector’s key membership organisation the National Association of Professional Sourcing Agents (NAPSA) reveals that the vast majority of the ‘sourcers’ it examined are not complying with the law and in particular those covering anti-money laundering or AML, which are designed to stop criminals and terrorist organisation laundering their dirty cash through the UK property market.
NAPSA has found that 136 sourcing businesses have been fined a combined total of over £1.1 million by HMRC recently for failing to register for AML.
The organisation also says that it looked at 500 property sourcing businesses and found that 90% were operating illegally in this way.
NAPSA says it also concerned that this figure would be ‘substantially higher’ if deeper investigations were possible into insurance policies, documentation, training, and fee structures, and it is calling for greater oversight and professional standards across this ‘Cinderella’ sector.
The key reason for non-compliance is the poor quality, unregulated training that is widespread within the sector, with courses often suggesting that compliance is a simple ‘checkbox exercise’ or that AML registration is unnecessary.
“This poor guidance leaves property sourcing agents vulnerable to significant fines from governing bodies like HMRC and increases the risk of their unwitting involvement in serious financial crimes, including money laundering,” says NAPSA.
As money laundering through the housing market is expected to reach £10 billion this year, NAPSA says it expects stricter regulatory measures to be introduced that will make it mandatory for sourcing agents to ensure they have the correct knowledge, registrations, documents, and insurance in place.
All NAPSA-approved agents have met national minimum compliance standards, ensuring they possess the correct registrations, insurance cover, and knowledge to provide a trustworthy service.
The association is urging investors to recognise the risks of working with non-compliant agents and to verify an agent's credentials before engaging their services.
"I firmly believe that by working together, we can create a property sourcing sector that is not only compliant but also trusted and respected," says Tina Walsh, CEO of NAPSA. "This report is a step in that direction, to raise awareness, to improve standards, and I hope it inspires meaningful action across the industry."
Redress scheme the PRS, which has partnered with NAPSA for some time and supports the sector being cleaned up, has welcomed the report.
“While many property sourcers are ensuring they comply with the laws and regulations, many are either wilfully, or through ignorance, disregarding their obligations,” says its Head of Redress, Sean Hooker (pictured).
“They are not only putting themselves at risk of fines and prosecution, but also endangering their clients, many of whom trust them with their financial futures and suffer loss and distress as a result of poor practice and the cavalier approach of these rogue operators.
“We will be collaborating with NAPSA to help find solutions, but also pressing hard to encourage Government to work harder and faster to introduce measures to ensure all property agents are regulated, trained, and adhere to a Code of Practice. NAPSA have done much of the groundwork, so there is no excuse.”
Tags:
.avif)
Comments