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Initiative launched to better regulate property 'deal sourcers'

napsa the prs

The world of property deal sourcing is to become better regulated following the launch of a new partnership between the sector’s trade association and the Property Redress Scheme.

It aims to reduce the number of illegally operating sourcing agents and the number of complaints made by property investors as well as significantly improve the “generally held negative view of the sourcing industry within the property investment sector”.

The partnership is between the National Association of Property Sourcing Agents (NAPSA) and the PRS and includes property sourcing agents, deal packagers and deal sourcers.

These are individuals and companies who seek out and research properties ideal for investors which includes, most often, existing rental properties or homes likely to make good PRS units.

Launch

But deal sourcers are not regulated because they are neither landlords, letting agents or investment advisors and NAPSA was launched in 2021 to fill the gap with a voluntary scheme so investors could identify ‘best practice’ sourcers.

NAPSA members commit to operate legally via a membership code of practice but it’s also a platform to showcase that they’re fully compliant.

The trade organisation stipulates that they must also be a member of a Government-approved redress scheme and, following an agreement with TPO last year, the PRS has now also teamed up with NAPSA.

This means that, should deals go wrong, its members’ clients have access to PRS redress.

Sean Hooker (pictured), Head of Redress at the PRS, says: “We are pleased to announce our partnership with NAPSA; this partnership is another cog in the wheel towards a professional and trusted property sourcing sector.

“The training, guidance and standards set out by both organisations will offer reassurance, encourage confidence in the industry and provide accountability to customers and authorities that this is a safe and compliant space in which to operate.”

Tina Walsh, CEO of NAPSA, (pictured) adds: “It is imperative that as the national association for the sourcing and deal packaging sector we have partnerships with other supervisory and regulatory bodies to ensure that our agents are always at the forefront of setting the highest standards and professionalism.

“By working in this way we also help to ensure that our sector provides a much safer environment for property investors when choosing to use the services of a sourcing agent.”

The PRS is also work with NAPSA to provide content including videos and webinars on best practice.

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