What are property raffles and should you enter one?

With house prices continuing to climb and the average UK home forecast to top £300,000 by the end of the year, it's easy to see the appeal of winning one outright. 

Property prize draws, run by companies such as Omaze and Raffle House, offer entrants the chance to win luxury homes, often sweetened with extras like a car or a six-figure cash prize.

But before you enter, it's worth understanding how these competitions actually work — and what to watch out for.

Here, Which? takes a closer look at the companies running these competitions and what to check in the small print before you part with any money to enter. 

Who runs property raffles?

A growing number of companies now offer the chance to win a home through prize draws. The most popular being Omaze, based on the number of google searches.

The homes on offer are typically located in desirable areas, such as the Cotswolds, coastal towns or affluent London suburbs. In many cases, the prize also includes extras such as a luxury car and a cash lump sum to help cover expenses

Some of the most prominent operators include:

Omaze

Omaze describes itself as a 'for-profit entertainment company with a social purpose'. 

Each of Omaze’s 'Million Pound House Draws' is run in partnership with a UK charity. Previous beneficiaries have included the Teenage Cancer Trust, British Heart Foundation, Marie Curie, Alzheimer’s Research UK and the RSPCA.

Since November 2023, Omaze has committed to donating 17% of total ticket sales from each house draw directly to its partnered charity, guaranteeing a minimum donation of £1m per draw. This marks a shift from its previous model, where charities received 80% of the net proceeds after deducting costs.

Its current draw gives entrants the chance at winning a £4m home in Cheshire plus £250,000 cash. There’s also a McLaren supercar up for grabs as a secondary prize, plus 50,000 smaller prizes.

Raffle House

Raffle House is a for-profit company that has been running property raffles since 2018. 

Unlike Omaze, it allows entrants to choose from a selection of charities when purchasing tickets. These charities include Brain Tumour Research, All Dogs Matter and Beyond Conflict. 

According to its website, 10% of ticket revenue (after costs) is donated to the selected charity.

Tramway Path

Tramway Path is a UK-based property competition company that launched in 2020. Rather than raffling a specific house, it offers winners a fixed cash prize, typically around £500,000, to spend on a home of their choice anywhere in the UK. 

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How to enter a property raffle 

Most property raffle companies give you two ways to enter: a one-off payment or a rolling subscription that automatically enters you into each draw.

Omaze, for example, offers several subscription tiers, starting from £10 a month for 60 entries. Raffle House also runs a subscription model, with options typically priced between £10 and £50. Both companies also allow one-off entries if you prefer not to commit.

Before entering, it’s worth checking carefully whether you're making a single payment or committing to a subscription. It’s easy to overlook recurring charges if you're not paying close attention at checkout.

Can I enter a property prize draw for free?

Yes, but it takes a bit of effort. While you don’t have to buy a ticket to take part, most companies offer a free postal entry route as a legal requirement. This typically involves sending a postcard or letter with your details to a specified address.

You’ll still need to cover the cost of postage, and in some cases, create a free account on the organiser’s website to accept the terms and conditions before your entry is valid.

If you’re using this method, make sure you follow the instructions exactly — missing a detail could invalidate your entry. Always check the T&Cs carefully before you post.

What happens if not enough tickets are sold?

Some companies reserve the right to offer a cash alternative if ticket sales fall short of expectations. This is usually explained in the terms and conditions, but not always prominently.

For example, Raffle House states that if insufficient tickets are sold, the winner will receive 70% of the net proceeds instead of the advertised property. And Tramway Path aims to sell approximately 180,000 ticket bundles. If this target isn't met, the winner receives the total revenue from bundles sold, minus operational and marketing expenses.

Do you have to pay tax on property raffle prizes?

You won’t pay tax on the prize itself – property raffles are treated as winnings, not income, so no income tax or capital gains tax is due at the point of transfer. However, there may be other costs to consider:

Stamp duty and legal fees are often paid by the organiser, although this isn’t always guaranteed. For example, Omaze states it will cover stamp duty for winners of its Cheshire House Draw, as well as the reasonable legal fees involved in the conveyancing process.

If the home is leasehold or in a managed development, you may also face ongoing service charges or ground rent.

• Find out more: the cost of buying a house

What to check for when entering a property raffle? 

If you're looking to enter a house raffle, check whether it adheres to the following CAP (the UK Code of non-broadcast advertising, sales promotion and direct marketing) rules:

• Awards the prize described, or a reasonable equivalent: if the number of tickets sold doesn't allow the company running the competition to give the property away, the cash equivalent must be deemed a 'reasonable equivalent'. 
• Sets a clear closing date: a closing date should be clear in all ads, and shouldn't be changed unless 'unavoidable circumstances outside the control of the advertiser make it necessary'.
• Considers free entry: getting participants to pay to enter a prize promotion runs the risk of being considered an unlawful lottery, so there should be a way for people to enter for free, and it must be advertised clearly.
• Makes T&Cs accessible: entrants should be able to easily access the promotional T&Cs throughout the competition, and they should not be changed unless the changes are pointed out to those taking part and wouldn't reasonably have put people off entering.

Where a property raffle breaches these guidelines, you may be able to complain to the ASA or the Gambling Commission.

key information

'Trust your instincts'

Before entering any competition, it’s worth taking a few minutes to check who’s behind it and whether the draw is being run professionally. Consumer rights editor Lauren Deitz shares her advice:

'Offers that sound too good to be true are often just that. If you're considering entering one of these tempting lotteries, then it's always worth carrying out a few background checks first.

'Always check out the website of who's running the offer, look at their terms and conditions and examine the finer details of what you're signing up for. If something smells fishy about the operation, then trust your instincts – especially if you're being asked to hand over your personal and financial details. 

'Check out the details of the website by entering the address into a domain checker like who.is. If it's a newly registered website, then this could indicate that it's not a genuine company. '

Should you take part in a property raffle?

With first-time buyers facing rising property costs, housing raffles have become increasingly popular.

If you're thinking of entering, be aware that some companies run illegal competitions, pocketing the ticket money without giving any prizes at all. We would advise researching the listing, and carefully reading the terms and conditions before parting with any cash.

A raffle can be a bit of fun if you're looking to become a homeowner. However, you should continue to plan for the event that you aren't the lucky winner.

If you want to find out more about saving for a deposit or applying for a mortgage, check out our first-time buyer’s guide.