Property sourcing is an exciting but challenging industry. Whether you’re a deal packager sourcing opportunities for investors, or an investor seeking your next property acquisition, understanding the regulations around material information is critical. Unfortunately, recent reports suggest that estate agents and property portals are falling short in this area.
According to a recent HomeOwners Alliance (HOA) report, many property listings fail to include vital information that can drastically affect decision-making. Of the 150 leasehold property listings reviewed, only 62% mentioned service charges, and less than half (49%) provided information about ground rent.
Even legally required details, like Energy Performance Certificate (EPC) ratings and council tax bands, were frequently omitted. This lack of transparency is a serious issue that could leave both buyers and investors at risk.
What Does Material Information Mean?
Material information is any detail that could impact a buyer’s decision to purchase a property, such as:
- Price (including fees like ground rent or service charges, existing rent etc.)
- Council tax band
- Tenure (leasehold/freehold and lease terms)
- Energy Performance (EPC rating)
- Building restrictions or safety concerns (type of construction, characteristics)
- Basic Property Information (number and size of rooms, parking, heating, sewage)
- Restrictions (conservation area, listed building etc.)
- Planning Permission
The National Trading Standards Estate and Letting Agency Team (NTSELAT) introduced clear guidelines on material information, grouping them into three parts to ensure consumers have access to every crucial detail. Still, the HOA’s findings suggest that enforcement and compliance remain uneven.
Property Sourcers and Deal Packagers – Your Responsibility
If you’re sourcing deals for investors, it’s vital you take the lead in ensuring all material information is collected and communicated.
Investors rely on you to provide accurate and complete details for their decision-making. Unfortunately, too many listings on social media and other deal platforms are vague or incomplete – focusing more on the ‘ROI’ or financial elements of the deal. This is not only unprofessional but could also lead to disputes or legal consequences.
If you’re sourcing deals directly from sellers, the onus is entirely on you to collect this information. It’s not the seller’s responsibility to ensure compliance—it’s yours. Missing or inaccurate material information could undermine your credibility and harm your long-term relationships with investors.
What You Should Include:
There are three sections to NTSELAT’s guidance covered under ‘A’, ‘B’ and ‘C’.
These define what you must include in every presentation or advertisement about your property / deal, and those pieces of material information that are dependent on the type of property.
A comprehensive approach doesn’t just ensure compliance—it helps build trust with your investors and stands out in the competitive sourcing market.
For Investors – Spot the Red Flags
As an investor, you need to be vigilant about the information provided in property deals. Missing details can result in costly surprises down the line, affecting your strategy or even putting your financial goals at risk.
For example, a lack of transparency on service charges or ground rent reviews could significantly reduce the profitability of a leasehold property.
Before committing to a purchase, ensure the following details are clearly outlined:
- Lease terms (e.g., length, fees, and key review dates).
- EPC rating, especially if energy efficiency is critical to operating costs.
- Council tax band and any specific usage restrictions, such as accessibility limitations.
If the necessary details aren’t immediately provided, make it a point to ask questions. A well-prepared property sourcer or agent should never hesitate to provide this information—they want the transaction to succeed as much as you do.
Empower Yourself with the Right Tools
To help property sourcers and investors get it right, we’ve developed a range of resources:
- Webinar for Sourcing Agents – Our recent webinar details everything you need to ensure compliance with NTSELAT’s guidelines for material information. If you’re a member, you can rewatch it any time to get up to speed.
- Deal Presentation Template – Approved NAPSA Members can download this easy-to-use template to ensure every deal includes the vital information needed. Simply edit and adapt it for every new listing.
- Sprift Partnership – We’re thrilled to announce our upcoming partnership with Sprift, a platform designed to take the hassle out of collecting material information. Members will soon have access to an exclusive offer to join, saving you time and effort.
Why Getting it Right Matters
Providing accurate and complete material information isn’t just a regulatory requirement—it’s an opportunity to set yourself apart as a professional, credible deal sourcer or agent. By ensuring every listing includes the information investors need, you inspire trust, reduce risk, and create a solid foundation for long-term business relationships.
Whether you’re a property sourcer or an investor, staying informed about material information is critical for success in the property market.
Don’t leave the success of your deals to chance. Empower yourself with the knowledge and tools you need to avoid potential pitfalls and maximise your opportunities.
Register your sourcing business with NAPSA to stay ahead of industry developments and take your property sourcing to the next level.
