Sourced is planning to spend at least £10m buying estate and letting agencies as it steps up its acquisition programme across the UK.
The property group has already completed four acquisitions this year. It now has around eight further deals in the pipeline, with most expected to complete before the end of 2026.
Its acquisitions this year include Open House, which brought 104 franchisees into the wider group.
Sourced said the £10m earmarked for further acquisitions represents a minimum investment rather than a spending limit.
The company is targeting established estate and letting agencies with recurring revenue and experienced teams. Potential deals will undergo financial, legal and operational due diligence.
AI concerns bring forward exit plans
Sourced CEO Stephen Moss said discussions with independent agency owners suggest artificial intelligence is becoming a factor in succession planning.
According to Moss, some owners are questioning whether they want to make the investment required to adapt their businesses to another wave of technological change.
“AI is now coming up regularly in our conversations with agency owners,” he said.
“Some are excited about the opportunities it creates, but others are genuinely concerned that their business could be left behind if they do not continually invest in new systems and change the way they operate.
“Many have already spent years adapting to new regulation and technology. They are now asking themselves whether they want to spend the next five or ten years trying to keep pace with another major shift.”
Moss said the businesses coming to market were not necessarily under financial pressure.
“These are not necessarily owners of struggling businesses,” he said. “In many cases, the agency is performing well, but the owner feels ready for a different chapter.”
More acquisitions planned
Sourced expects its acquisition programme to continue beyond its current pipeline.
“The £10 million is a minimum rather than a ceiling,” Moss said. “If the right businesses come forward, we have the appetite to invest further.
“We want to speak with owners who are ready to sell, as well as those who are beginning to think about retirement or succession over the next few years.”
The planned investment follows a period of increased consolidation across the estate and lettings sector, with independent agency owners weighing succession, regulatory costs and technology investment when considering their longer-term plans.
