House prices are beyond the reach of many people, but there's an increasingly popular low-cost way to win yourself a place on the property ladder: the raffle.
For as little as £2 a ticket, you can get a chance to win a house from a seller taking this "non-traditional route" that allows them to swerve estate agents and viewings, and "laborious" conveyancing paperwork, said The i Paper.
There are even sites set up to host house raffles. The UK platform Raffall allows sellers to set a minimum threshold for ticket sales, which must be met for their property to be won. If ticket sales don't meet the threshold, the sellers can give 50% of the ticket revenue to the winner instead, and keep 40% for themselves, with 10% going to Raffall. Or they can give the house away anyway and keep more of the ticket sale proceeds.
Ticket prices may be small, but the stakes are high, and there's big money to be made. Since it was launched 10 years ago, Raffall has, it claims, hosted more than 46,000 raffles, distributing more than 130,000 prizes and bringing in nearly £50 million in revenue for home sellers.
The property raffle industry is "largely unregulated" in the UK, said The Guardian, because most raffles are classed as free draws or prize competitions, which means they don't have to abide by the strict licensing conditions laid down by the Gambling Act 2005. |