14/07/25
A new way to sell and secure property is gaining traction – property raffles. You might have spotted tempting adverts to enter a raffle to win a home that looks deserving of a feature on Grand Designs, or even wondered if you could raffle your own property. Read on to find out more about the trend.
Property raffles have been around for decades, but dedicated websites and enticing media campaigns mean they’ve become more popular in recent years. It’s not just luxury properties that feature on raffle websites either, some offer regular homes that could be a great way to get on the property ladder or even act as a buy-to-let.
Yet, while they might seem like a great way to pass on property, there are drawbacks for both parties.
A property raffle could provide a way to win a home
It’s easy to see why prospective buyers are interested in property raffles. They offer the chance to win a property for a relatively small fee. Whether you’re an aspiring homeowner or you spot a luxurious space you’d like to swap your current home for, it’s a tempting proposition.
In some cases, you have the chance to win more than the property. The home might come furnished, with a car, or include a cash lump sum. It’s not just the property you stand to win, but a lifestyle.
Of course, one of the key downsides to property raffles is that there’s no guarantee. The most popular raffles have tens of thousands of entrants, so your chances of winning are slim.
There are also the hidden costs to consider. Moving home comes with expenses, and a larger property often means more expensive bills, which might not be affordable for you. Indeed, there have been reports of winners putting their new home up for sale in a matter of days.
You should also note that property raffles are largely unregulated. Most are classed as free draws and prize competitions, so don’t come under the Gambling Act of 2005. As a result, you might not be protected, and it’s important to consider how much you’re spending and if it’s affordable if you’re entering competitions.
Sellers could be lured by the potential to raise more money
From a seller’s point of view, selling raffle tickets has the potential to raise more money than a traditional property sale would. If your home generated a lot of interest, ticket sales might exceed the value of your property.
Some sellers might be lured by the appeal of skipping the usual sale process, which can be lengthy and stressful. Property raffles might offer a way to speed it up.
However, there are downsides to both of these benefits.
First, you’re likely to need to sell an enormous number of tickets to reach the value of your property, and there’s no guarantee. If you don’t sell enough tickets, you can usually give a portion of the money raised to the winner, but this isn’t always the case, so it’s important to be aware of the terms and conditions of the competition before you proceed.
Second, when using a property raffle company, you’ll usually pay them a fee of between 10% and 15% of the amount raised. As a result, you need to factor this cost into your calculations.
Finally, while you might assume a property raffle will be quick, that’s not always the case. Generating enough interest to make it worth your while can take months and potentially longer than it would to sell your home through a traditional method. If potential speed is what caught your attention, it might not be the most suitable option.
We could help you secure a mortgage
If you decide that a property raffle isn’t for you and choose the traditional route of securing a mortgage to buy your next property, we’re here to help. We can offer guidance every step of the way, including comparing lenders to understand which could be right for you.
Please contact us to arrange a meeting.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
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