Opinion: Property raffles are 500 times easier to win than the EuroMillions but they’re not going to go mainstream until they’re transparent

Property raffles have certainly generated national media column inches over the past few years. There has been a huge buzz around the concept and it’s easy to see why – the thought of owning a multi-million pound home for the small cost of a ticket could turn an ordinary person struggling to get a foot on the property ladder into a wealthy homeowner overnight, crucially with no mortgage.

And the time is ripe for them, too. In London, there are around 4,600 properties valued above £2m according to Rightmove, while London Central Portfolio has noted that in Prime Central London in particular the number of transactions are at their lowest level since the financial crisis. Higher levels of stamp duty tax, Brexit and general political uncertainty have slowed the market right down.

What is certain, however, is that buyers are demanding enormous discounts safe in the knowledge that right now in London many experts are whispering that we may be at or close to ‘the bottom of the market’. Internationals, too, are coming in to sweep up properties with hefty discounts and are making the most of favourable exchange rates. It has been reported that one Israeli billionaire spent £500m on 1,200 discounted new build flats in London at the end of last year.

Meanwhile, savvy vendors, particularly at the top end who are not in a rush, are looking for ways to raise a healthy value for their property in this uncertain climate. Property raffles, or to be precise property competitions (so as to comply with gambling legislation), are one way of doing this. The key is to ensure that the eventual winner isn’t lumbered with stamp duty, legal fees, utility or service charge costs – at least for the first year – so that they can then decide whether to live in the property themselves or rent it out.

There are also a few catches. Many raffles have been closed down as they haven’t complied with regulations and a large number have fallen short of ticket sales. Typically vendors have turned to the raffle concept after failing to sell on the open market in a last ditch attempt to raise capital for their home. Many of them have been caught out by amateurs who have over-inflated costs to their benefit, creating stigma around the legitimacy of property raffling.

There has been a gap in the sector for some time for a high end, legitimate and legally compliant hosting site that could present a few, carefully chosen trophy properties, and, if marketed correctly – particularly via social media channels – it could generate an exciting buzz.

So me and fellow prime property developer Jonny Jackson put our money where our mouths are and started our own raffle platform, Cadivus, (windfall in Latin) to fill this gap, launching with one of our own newly renovated, new to the market apartments in South Kensington. If ticket sales don’t reach targets, then a cash prize will be raffled off.

By aiming to sell 300,000 tickets at £10 each, we worked out that ticket holders are 500 times more likely to win our raffle than the Euromilllions lottery. Interestingly, some people have bought one ticket, while others have bought hundreds. By working with Promo Veritas, the leading UK compliance officer, and making our terms and conditions as transparent as possible, we hope to give property raffles a better name.

As more uncertainty looms and the threat of a no deal Brexit becomes more serious, we believe that property raffles are going to generate more and more interest. It’s a fun way for people to win the chance to own a home that would ordinarily be far out of their reach, but credible raffles need to rise above the amateurs if it’s going to go mainstream.