Sourced is preparing to spend at least £10m acquiring estate and letting agencies as it says concerns over AI are prompting some independent agency owners to bring forward succession plans.
The property group has already completed four acquisitions this year and has around eight more progressing through its pipeline, with the majority expected to complete before the end of 2026.
Its acquisitions this year include national estate agency network Open House, which brought 104 franchisees into the wider group.
Sourced is targeting established estate and letting agencies with reliable revenues, experienced teams and opportunities for further growth, with the £10m earmarked for acquisitions described as a minimum rather than a ceiling.
AI CONCERNS
Stephen Moss (main picture), Chief Executive Officer of Sourced, says AI is increasingly being raised during conversations with agency owners considering their futures.
He says: “AI is now coming up regularly in our conversations with agency owners. 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 says the businesses considering a sale are not necessarily struggling, with many profitable agencies having experienced teams, loyal clients and established local reputations.
SUCCESSION PLANS
He adds: “These are not necessarily owners of struggling businesses. In many cases, the agency is performing well, but the owner feels ready for a different chapter.
“Selling is not purely a financial decision. They want to know what will happen to their employees, clients and the reputation they have built. Finding the right organisation to take the business forward matters.”
Moss says Sourced is interested both in owners ready to sell and those considering retirement or succession over the next few years.
He adds: “The £10 million is a minimum rather than a ceiling. If the right businesses come forward, we have the appetite to invest further.”
