Property Sourcing Fees: What to Charge and How to Disclose Them
What UK property sourcers typically charge in 2026, when fees are taken, refund norms, the legal disclosure obligations behind them, and how to handle reservation fees cleanly.
Two questions dominate every new sourcer's first months: what should I charge, and how do I take the money without falling foul of the rules? The two are inseparable. A well-priced fee with sloppy disclosure is a redress complaint waiting to happen; a compliant fee priced too low keeps the business unsustainable. This guide covers both halves.
What sourcers typically charge
Most UK sourcing fees for standard single-let and light-refurb deals sit in the £3,000 to £5,000 range. Fees climb towards £10,000 for London deals, complex projects such as HMO conversions and commercial-to-residential, and deals where the sourcer adds substantial project value beyond the introduction. Below £2,000 it is hard to run a compliant business: once you subtract registration costs, insurance, marketing and the deals that fall through, thin fees make corner-cutting tempting, and corners here are legal obligations.
Common fee models
| Model | How it works | Where it fits |
|---|---|---|
| Fixed fee | A set amount per deal, e.g. £3,500 | The default. Simple to disclose, simple for investors to compare |
| Percentage of purchase price | Commonly 1% to 3% | Scales with deal size; needs a floor so small deals stay viable |
| Tiered by strategy | Higher fees for HMO, serviced accommodation or heavy refurb than for simple buy-to-lets | Reflects the extra sourcing and diligence work in complex deals |
| Fee plus project support | Sourcing fee plus a separately priced refurb or project management service | Only where the extra service is real, separately described and separately priced |
Whichever model you use, the investor-facing rule is the same: one number, stated early, included in the cash-required figure of the deal, as covered in how to present a deal to investors.
When the fee is charged
Three trigger points are common, often combined:
- Reservation: a deposit, often £500 to £1,000 or a percentage of the fee, paid to take the deal off the market while the investor completes initial due diligence
- Exchange of contracts: the most common point for the balance, because the deal is now legally committed
- Completion: investor-friendliest, but exposes the sourcer to months of work that dies with a failed completion
A common structure is a reservation payment on agreement with the balance on exchange. What matters legally is not which structure you pick but that the trigger points are unambiguous in writing before any money moves.
Refundability: the norms
Refund terms generate more sourcing disputes than any other clause. The broad norms in the market:
- Deal falls through because of the sourcer or seller (misdescribed deal, vendor withdraws, legal defect): fee or reservation refunded in full
- Investor withdraws without cause: reservation commonly retained, and the terms must have said so up front
- Survey or valuation reveals a material problem: usually refunded, since the deal was not as presented
- Finance falls through: negotiable territory; agree it in advance rather than argue it afterwards
Redress schemes routinely uphold complaints where refund terms were unclear, one-sided, or produced after the payment. If a term only appears once a dispute starts, expect it to be worthless.
Your disclosure obligations
Fee disclosure for sourcers is not a courtesy; it is a stack of overlapping legal duties:
- Estate Agents Act 1979: written terms, including all fees and charges, before the client is committed
- DMCC Act 2024: since April 2025, omitting material information, and price is always material, is automatically an unfair commercial practice, with CMA enforcement
- Redress scheme rules: both Property Redress and The Property Ombudsman expect clear, fair fee terms and will adjudicate complaints against you on them
- Consumer contract rules: where you deal with consumers at a distance, cancellation rights and information requirements apply to your agreements
The full set of registrations behind these duties, HMRC AML supervision included, is in our deal sourcing compliance checklist.
Reservation-fee hygiene
Reservation money is where good sourcers get into avoidable trouble. The hygiene rules:
- Client account, not cashflow. Money held on behalf of a client is not yours until the trigger point in your terms is reached. Keep it in a separate client account
- Terms before transfer. The investor has the written agreement, including refund terms, before they send a penny
- Receipt and status. Confirm receipt in writing and state what the money is: refundable reservation, part-fee, or deposit
- No spending against unexchanged deals. If the deal dies pre-exchange in circumstances your terms say are refundable, the money must still exist to refund
- Prompt refunds. When a refund is due, pay it quickly. Slow refunds convert unhappy investors into redress complaints and public reviews
Putting it together
Price for the value of a genuinely packaged deal: sourced, analysed, evidenced and presented so an investor can decide quickly. That standard of packaging is what justifies fees at the top of the range, and it is the same standard the law now demands anyway. A deal pack built to the full template, with the fee on the first page, is simultaneously your best sales asset and your best compliance evidence.
Analyse deals and generate investor-ready packs with Dealist
Run the numbers across Flip, BTL, BRR, HMO and serviced accommodation with accurate UK stamp duty, then turn the analysis into a white-label deal pack in minutes. Free plan, no card required.
Get started freeFrequently asked questions
How much do property sourcers charge in the UK?
Most sourcing fees for standard single-let and light-refurb deals sit between £3,000 and £5,000 per deal, rising towards £10,000 for London deals and complex projects such as HMO conversions. Fees can be fixed, a percentage of purchase price (commonly 1% to 3%), or tiered by strategy.
When is a sourcing fee paid?
Commonly a reservation payment when the investor agrees to take the deal, with the balance on exchange of contracts. Some sourcers charge on completion instead. Any structure is workable provided the trigger points are unambiguous and in writing before money changes hands.
Are sourcing fees refundable?
Market norms: refunded in full if the deal falls through because of the sourcer or seller, or if it was materially misdescribed; commonly retained if the investor withdraws without cause, provided the terms said so up front. Finance-failure refunds should be agreed in advance. Unclear or one-sided refund terms are regularly overturned by redress schemes.
Do sourcers legally have to disclose their fees?
Yes. The Estate Agents Act 1979 requires written terms including all charges before the client commits, the DMCC Act 2024 makes omitting price information an unfair commercial practice enforced by the CMA, and both approved redress schemes require clear, fair fee terms.
Should reservation fees go in a separate client account?
Yes. Money held on behalf of a client should sit in a client account, separate from business cashflow, until the trigger point in your written terms is reached, so that a refund is always possible if the deal dies in refundable circumstances.