Britain tells anxious sellers not to raffle homes

Homeowners struggling to sell their houses in Britain's falling house market could be breaking the law if they resort to raffling them, the Gambling Commission said.

The watchdog said a "small but growing" number of homeowners had recently opted to use a prize competition as a method of realising property values.

However, they may be falling foul of legislation incorporated in 2005's Gambling Act, the Commission said.

"The Commission has been keeping a close eye on the recent developments with such house competitions and warns potential organisers to take note of its guidance and to take independent legal advice before proceeding," it said in a statement.

Under current legislation prize competitions are free of statutory control if they require an element of skill which would "either deter a significant proportion of potential entrants from participating or eliminate a significant proportion who do enter". If not, they are classed as lotteries.

"Homeowners considering such schemes as an alternative to selling their house risk committing a criminal offence if they cross the boundary and stray into offering an illegal lottery, said the Commission's deputy chief executive Tom Kavanagh.

"Lotteries are the preserve of good causes and cannot be operated for private gain," he added. British house prices have fallen more than 10 per cent from last year's peak, in part because the credit crunch has made it harder and more expensive for would-be buyers to get finance.