Deal sourcers face more scrutiny following redress partnership
Partnership between the PRS and trade association NAPSA will shine a stronger light on best practice but also reduce the number of illegally-operating players.
Property ‘deal sourcers’ are to be better regulated following a new partnership between the sector’s trade association and a leading redress scheme.
It hopes to reduce the number of illegally operating sourcing agent and complaints made by property investors but also 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.
Tina Walsh, CEO of NAPSA, 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.”
‘Sourcers’ 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.
But they are not regulated because they are neither landlords, letting agents nor investment advisors. NAPSA was launched in 2021 to fill the gap with a voluntary scheme so investors could identify ‘best practice’ operators.
Redress requirement
To be a member, sourcers must join one of the two Government-approved redress schemes and, following an agreement with TPO last year, the PRS has now also teamed up with NAPSA.
Sean Hooker, 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.”
Read more about property sourcers.
