Nearly six in ten UK property transactions now require additional checks under anti-money laundering rules, according to new data from Thirdfort.

Analysis of more than 415,000 completed Source of Funds checks found that 57.7% of cases included at least one red flag, with an average of two per report—pointing to a substantial compliance workload for conveyancers and estate agents.

Although red flags do not indicate wrongdoing, they trigger enhanced due diligence requirements, including further evidence and verification before a transaction can proceed. Without automation, this process typically involves manual follow-up, extra document requests and ongoing communication between professionals and buyers.

Olly Thornton-Berry, co-founder and CEO at Thirdfort, said: “Our data shows that enhanced due diligence is now the norm rather than the exception in UK property transactions.

“When nearly six in ten purchases require additional checks, that represents a significant operational burden for conveyancers and estate agents, particularly those still relying on manual processes.

“Technology plays a critical role in reducing back-and-forth, prompting buyers for the right information upfront and surfacing risk indicators quickly and securely.”