A raffle - a desperate solution to sell your home?

June 13, 2017 by Brendan

Home owners

As house price growth has slowed down and homes in some regions of the UK are falling in value, some sellers are struggling to sell their homes. One solution which has been used by desperate sellers, is to raffle their home.

According to estate agents, the general election, Brexit, rising living costs and job security, have all played a part in the slowdown of the housing market, at a time of year which would normally be busy. Some sellers have chosen to raffle their homes, by selling hundreds of thousands of raffle tickets to raise the amount they want for their home.

However, there are strict rules governing the process, and failure to comply with the regulations can result in a prison sentence. The property has to be sold through a prize draw, rather than a lottery, as lotteries are run to benefit good causes.

According to the Gambling Commission, a genuine prize draw must rely on the competitor using their skill, knowledge or judgement. A skill test must be provided for the raffle, which is very often a question. The rules require a significant number of people to be unable to take part of guess the correct answer, in order for the draw to be lawful.

It is recommended that anyone considering selling their home using this method, consults a solicitor who can provide advice and prevent you from unintentionally breaking the rules. Before considering this method, it may be useful to consult a CeMAP qualified mortgage advisor who may be able to help.