House Raffle Trend!

Spender£

Can't help but notice loads of Home Raffle type competitions as of late, they vary in price from £2 to £25 but i wonder if they can be trusted.:think:
I'm tempted to have a go but i'm still a bit suspicious, does anybody have any experience of these Raffles?

mjm3346

The majority do not sell enough tickets for anyone to win the property and end up offering whatever they have listed as the alternative.
They often frame the competitions so they are not treated as a "lottery" and avoid the stricter regulations and the need for a proper licence.
Some of the "values" of the homes are vastly overstated and/or they have been tried on the sales market and failed.

But most importantly they are a poor value bet so why bother?

Spender£

mjm3346 wrote: »

The majority do not sell enough tickets for anyone to win the property and end up offering whatever they have listed as the alternative.
They often frame the competitions so they are not treated as a "lottery" and avoid the stricter regulations and the need for a proper licence.
Some of the "values" of the homes are vastly overstated and/or they have been tried on the sales market and failed.

But most importantly they are a poor value bet so why bother?

Thanks, i did wonder why someone would bother unless they are hiding some details about the house, i notice buried in the small print of a flat it mentioned ground rent of a grand.

mjm3346

This from April this year

a dozen house raffles have been shut down by the Gambling Commission and local councils in the last few months, after owners failed to comply with regulations.

jdsaint

House comps are now in decline with fewer opening - and those that have not even getting close to completion. In this particular phase only one house has actually been won - and that kind of mirrors the trend back in 2008/9.


Most of the newer comps do pass The UKGC rules - only 6 have closed with refunds for a mix of reasons not just issues with UKGC. Of all the comps since 2017 only one seems to have gone awol and that's Reve House.


Those that have ended and not given away a house have given out cash prizes from £9000 to £100K. Ticket sales vary from a few thousand to tens of thousand. It's up to you to decide if the odds are worth a punt.


This phase of comps has seen more professional portals emerge - with the aim to act as 'estate agents' for multiple comps. None of them have actually worked in terms of giving away a house.


I think we'll see the comps phase out in the next few months - they're not the easy sell/get rich quick scheme as some owners think, they're a lot of hard work to run, a few owners have experienced barrages of abuse on social media and no one sells a house.


Jason