The last 18 months have seen unprecedented government action to save the property market from the devastating effects of the Coronavirus Pandemic - and the market’s done more than rebound.

In June 2020, a [Stamp Duty Holiday](https://www.getagent.co.uk/blog/property-news/first-time-buyers-pay-more-due-to-stamp-duty-holiday "First time buyers pay more due to Stamp Duty Holiday") was introduced to galvanise the property market and incentivise first time home buyers to continue spending. Meanwhile, lockdown-induced mortgage payment holidays and low mortgage approval ratings saw the monetary gap between homeowners and renters widen. Combined with an acute shortage of housing, these actions have set the property market ablaze, with house prices soaring across the country. 

While the boom means it’s a good time to be a homeowner (and even better, a home seller), it’s important to remember its effect on other areas within the industry, especially where estate agents are concerned.

## Are estate agent’s fees on the rise?

[Estate agent’s fees](https://www.getagent.co.uk/estate-agent-fees) have risen due to an increase in the value of property. Most high street agents earn a percentage cut from the sale of properties. Average rates usually range from __0.75 to 3%__ (including VAT) based on the following factors:

* Location
* Property type
* Property value

While location and property type often dictate property value, it’s also affected by the state of the housing market. During the Great Recession for example, [house prices dropped by nearly 19%](https://www.getagent.co.uk/house-prices) between the third quarter of 2007 and the first quarter of 2009. In other words, the market became what’s known as a ‘buyer’s market’.

### What is a buyer’s market?

A buyer’s market describes conditions where purchasers have distinct advantages over sellers. In the Great Recession, house prices plummeted. This meant that while it was theoretically easier than ever to buy property, it was a lot harder to sell because less people could afford to buy. In a recession, people are much more likely to be frugal with their money than invest in property. 

In a buyer’s market, estate agent fees usually decrease because the industry is suffering from a lack of sales.

### Why have estate agent fees risen now?

Currently, the property market is a ‘seller’s market’ - meaning that it’s a very good time to be a home seller, but not so much a buyer. House prices are on the rise, meaning that agents can not only earn more from their commission, but they can adjust their rates accordingly to boost their earnings.

## How much do estate agents charge in your city?

Using our handy [Estate Agent Fees Tool](https://www.getagent.co.uk/estate-agent-fees "Estate agent fees"), we looked at agent rates across the most popular cities in the UK, and how they equate to current house prices:

![How much are estate agents in your city?](//images.contentful.com/us6n8ous4bz0/5FUjry7SavOevbbcVzTaB3/5514d2337df6200ceb9d3e715ccf41ed/estate-agent-fees-city-uk.png)

[See the full table of data below](https://www.getagent.co.uk/blog/research/how-much-are-estate-agent-fees#average-estate-agent-fee-by-uk-city)

## What do the results show?

To help you decipher our findings, we’ve picked out some juicy snippets:

### Cities with the most expensive agent fees

1. London is still by large, the most expensive city in terms of property price and estate agent fees. At 1.7%, with an average property price of £525,893, the average agent fee is £8,940, just shy of £10,000.
2. The second-highest cost to sell is found in Cambridge and Oxford. Despite charging just a 1.1% fee, estate agents take home £5,426 and £4,711 due to the higher value of properties.
3. Bournemouth also ranks within the top five, where the average agent earns £3,768 from an average fee of 1.2%. Meanwhile, the same percentage fee in Bristol equates to a cost of £3,690.

### Cities with the least expensive agent fees

1. On the other end of the table, Glasgow is currently the most affordable city to sell your home with an estate agent. Their 1.1% fee charged on an average property price of £162,081 equates to just £1,783.
2. Bradford (£1,873), Newcastle (£1,957), Nottingham (£2,233) and Liverpool (£2,304) also rank amongst the most affordable cities to sell in the current market. 

## Do estate agent fees matter?

While it might be tempting to view agent fees as a major consideration when selling your home, it’s important to remember that **fees don't matter as much as you think**.

Our research shows that agent rates often vary without relation to average house price. Residents in Liverpool are charged an __average rate of 1.4%__ to sell their homes. This is the second highest agent rate from our data, despite Liverpool being a city with historically low house prices. 

However, our research also shows that Liverpool ranks among the most affordable cities to sell in the current market, despite high agent rates. This is because agents charge a proportional cut from property sales. The 0.7% difference between the lowest agent rates (Glasgow, Newcastle, Edinburgh) and the highest rates (London, Liverpool) is negligible in comparison to the £363,812 disparity between properties in London and Glasgow. Ultimately, you can still pay higher agent rates without truly impacting your sale. 

What’s more, quality high street agents view their commission as an incentive to get your property sold. This means it’s in their best interests to achieve the best final sale price for your property. 

However, this doesn’t mean you should get complacent. Estate agents handle the most important transactions of our lives. Their level of expertise could result in a sale well above asking price, or a bungled opportunity. Although fees shouldn’t be a primary consideration, you should still get your money’s worth. 

The main thing you should take into account is **agent performance**.

## Why agent performance matters

Like any type of service we purchase (insurance packages, phone contracts), estate agents should be compared. Although an agent’s marketing and negotiation abilities may vary considerably, home sellers often mistake fees as the main indication of an agent’s reliability. This is because many people find agents difficult to distinguish from one another at face value.

So how do you find the right estate agent for your property sale? Our free [Agent Comparison Tool](https://www.getagent.co.uk/vendor) uses data from the Land Registry and property portals to rank local estate agents according to:

* Their expertise in selling your property type
* How likely they are to achieve your asking price
* How fast they sell properties in your area

Everyone has different motivations for selling their property. Whether you’re after a quick sale or the most money possible, hard data allows you to easily distinguish which agents perform best in your local area.

## Average estate agent fee by UK city

| City    | Average estate agent fee (%) | Average house price (£) | Average fee (£) |
| ----------- | ------------------- | ------------------- | ------------- |
| London      | 1.7%                | £525,893            | £8,940        |
| Cambridge   | 1.1%                | £493,297            | £5,426        |
| Oxford      | 1.1%                | £428,298            | £4,711        |
| Bournemouth | 1.2%                | £313,983            | £3,768        |
| Bristol     | 1.2%                | £307,523            | £3,690        |
| Edinburgh   | 1.0%                | £314,042            | £3,140        |
| Birmingham  | 1.4%                | £209,176            | £2,928        |
| Cardiff     | 1.2%                | £241,321            | £2,896        |
| Leeds       | 1.3%                | £216,580            | £2,816        |
| Portsmouth  | 1.2%                | £227,590            | £2,731        |
| Leicester   | 1.3%                | £206,498            | £2,684        |
| Southampton | 1.2%                | £220,826            | £2,650        |
| Manchester  | 1.3%                | £203,835            | £2,650        |
| Plymouth    | 1.3%                | £197,944            | £2,573        |
| Sheffield   | 1.2%                | £192,236            | £2,307        |
| Liverpool   | 1.4%                | £164,550            | £2,304        |
| Nottingham  | 1.3%                | £171,762            | £2,233        |
| Newcastle   | 1.1%                | £177,877            | £1,957        |
| Bradford    | 1.2%                | £156,076            | £1,873        |
| Glasgow     | 1.1%                | £162,081            | £1,783        |

A couple review an estate agent contract in their home.

How much are estate agent fees in your city?

Using our handy Estate Agent Fees Tool, we looked at agent rates across the most popular cities in the UK, and how they equate to current house prices.

How much do estate agents charge? Average fees by city

Using our handy Estate Agent Fees Tool, we looked at agent rates across the most popular cities in the UK, and how they equate to current house prices.


For most people, winning a lottery or raffle is only a pipe dream. Not so for Marilyn Pratt, who in April won a £3 million townhouse, as well as £10,000 cash, with just a £10 raffle ticket. The townhouse, situated in Fulham, comes with three bedrooms, a gym, an office, and a walled garden. While the house is worth much more than her home in Kent, Pratt wants to sell the house to give her daughter a chance on the property ladder.

_’The house is beautiful, but I think the most likely outcome is that I’ll sell it (...) That would be fairest as I have another daughter, too. But it makes me so happy.’_

House raffles see thousands of UK residents purchase tickets for a chance to win the home of their dreams. While having been around for decades, these competitions have exploded in popularity during recent years. Though clearly worth a ticket for some lucky players, are these raffles actually a good investment? What do they mean for the wider property market as a whole?

## How do property raffles work?

In a house raffle, participants may buy a number of tickets to secure a chance of winning the prize home. Omaze, an American for profit fundraising company, offers five types of entry for their current [‘Win a house in Ascot’ draw](https://omaze.co.uk/pages/enter-ascot):

* **Postal entry**: No purchase necessary
* **320 entries**: £150
* **85 entries**: £50
* **40 entries**: £25
* **15 entries**: £10

Buying more tickets will help boost your chances of winning. At the specified date (in this case 30th January 2022),  the tickets are drawn and a winner is announced.

## The rise of raffles

[According to Loqaux](https://www.loquax.co.uk/win-a-house.php), in 2019, there were just 8 property competitions. In 2020, there were 93, and in 2021 there were over 96. More than ever, people are looking for a quick win to seal their place on the property ladder. But why are property raffles on the rise?

When Covid 19 reached UK shores in March 2020, the impending tribulations for the property market seemed enough for government intervention. Chancellor Rishi Sunak introduced the Stamp Duty Holiday as a stimulus for home buyers to continue buying. 

While the holiday was somewhat successful, consequential lockdowns encouraged vendors to look for new ways to sell their homes. Friends and family found innovative ways to communicate with one another, leading to the popularisation of apps like Zoom and Houseparty. This revitalisation of social media no doubt galvanised giveaways and prize draws throughout the course of the pandemic.

Though certainly a catalyst, the pandemic cannot wholly be to blame for the house raffle phenomenon. At their core, these competitions offer home buyers an exciting chance to ‘win big’ through inexpensive means. Earlier this year, researchers from both the University of Liverpool and the National Centre for Social Research [found that people from poorer areas were more likely to be high-risk online gamblers](https://www.theguardian.com/society/2021/mar/12/people-from-poor-uk-areas-more-likely-to-be-high-risk-online-gamblers-study). Bleak prospects often precede gambling and speculation, and the property ladder has been a luxury venture for years.

## Lack of affordability in the property market 

Since plummeting in the 2009 recession, house prices have been on the rise. Many ordinary people are finding themselves out-priced by the housing market. How has this happened?

**1. Low-interest rates**

Low mortgage rates have made buying a house more attractive than renting. Since 1992, interest rates have fallen from 15% to 0.5%, making the cost of getting a mortgage lower. Despite rising house prices, low-interest rates have made buying relatively affordable, meaning more people have been able to buy property.

**2. Low supply**

Due to an increasing number of households, the government has estimated that we would need 250,000 houses a year just to keep up with our growing population. Unfortunately, house building is at its lowest since World War Two. There are several reasons why:

* Shortage of supply around popular cities like London
* The government is committed to preserving the green belt across the UK
* The government has cut social housing (Margaret Thatcher’s privatisation of council properties)

Economics, at its most basic level, tells us that if demand increases faster than supply, then prices will rise. 

**3. Lack of first-time buyers**

While the percentage of first-time buyers has fallen, the property ladder remains an extremely attractive prospect. Property value is on the rise, and the UK maintains a strong cultural desire for housing. As Omaze Winner, Marilyn Pratt, demonstrates, most first-time buyers need help from parents, whether it’s a deposit or mortgage in their name. Ordinary people, without help from their parents, are being phased out of the housing market.

[According to Statista](https://www.statista.com/statistics/755701/average-age-first-time-home-buyers-england/), the average age of first time house buyers in London and outside of London has increased by at least two years since 2005, from 32 and 30.6, to 34.5 and 32.6 respectively. In August 2021, the UK House Prices Index found the [average house price in the UK](https://landregistry.data.gov.uk/app/ukhpi) was worth £264,244. It’s clear that property buyers are older than ever, and [average house prices are reaching the upper echelons](https://www.theguardian.com/money/2021/sep/07/uk-house-prices-stamp-duty-august-halifax) of 2015 (£270,000). Naturally, many people would jump at the opportunity to win a house - however small their chances.

## Property raffles: a breakdown

The two most popular house raffles in the UK are currently Omaze and Raffle House.

**How do property raffles decide a winner?**

Some companies, like Raffle House, pay a third-party to make the final draw, whereas other companies, like Omaze, use an in-house computer program to randomly select a winner.

**Do all proceeds from house raffles go to charity?**

This depends on the raffle runner. With Omaze draws, 80% of the net proceeds go to charity, while 20% go to Omaze. Raffle House, on the other hand, does not automatically donate proceeds to charity. Users must manually input their wish for purchase money to be donated.

**What types of properties can be sold in property raffles?**

There’s a big variety in the types of properties listed in raffles. Omaze tends to advertise opulent properties, while Raffle House advertise more affordable houses. Properties aren’t the only commodities on offer however, with cash prizes, vehicles, and entertainment systems also up for grabs.

**What are the odds of winning a house raffle?**

The odds of winning a house raffle completely depend on the competition in question. They are significantly higher, however, than winning the lottery. While a lotto jackpot is 45,057,474 to 1, the odds of winning a house raffle depend on the number of tickets sold, and could be closer to 30,000 to 1.

**Do you need to pay tax if you sell a prize home?**

If you sell a prize home, [Capital Gains is the only tax you will have to pay](https://www.getagent.co.uk/guide/selling-your-house/capital-gains-tax). You only have to pay it if the house has accumulated in value since coming into ownership. This means if you sell the home immediately after winning it, you won’t have to pay any Capital Gains.

**Is it legal to raffle a house in the UK?**

It is legal to raffle a house in the UK but they must follow strict regulations in accordance with the Advertising Standards Authority (ASA) and Gambling Commission standards. Failure to abide by these regulations have led to many competitions being shut down, so most organisers follow these regulations _to the letter_.

Some of the biggest issues for competition runners are the terms ‘property raffle’ and ‘property lottery’. Lotteries and raffles are required by law to donate all proceeds to charity. To avoid this, raffle runners avoid describing themselves as such. For instance, Omaze states that, under no certain terms, should it be referred to as a property lottery, but rather, as a ‘prize draw’.

To avoid being penned as a raffle or lottery, competitions must also allow for a ‘free entry’ option. How clear this is, is an important part of meeting ASA and Gambling Commission standards.

**Omaze ‘free option’**

Postal entries, while not immediately clear, are available on the far left of the ticket menu. The ‘40 Entries’ option is depicted as the ‘most popular’.

![Omaze free ticket option](//images.contentful.com/us6n8ous4bz0/233frL1YejOeJSGviKLoWw/a4fbe52a6da2303eb8538936007c71f5/omaze-free-sign-up-option.png)

**Raffle House ‘free option’**

Unlike Omaze, Raffle House does not include a ‘free ticket’ option in their ticket menu. Instead, entrants can click ‘Free Entry’ in the corner of the homepage next to the ‘Sign up’ widget. 

![Raffle House free ticket option](//images.contentful.com/us6n8ous4bz0/1ZqyAgWZaPPbxHQzmxz9uv/73f6cb4c8adc9e483c96db74849ab2e9/rafflehouse-free-ticket-sign-up.png)

 ## Can you raffle your house with Omaze and Raffle House?

Unfortunately, because Omaze is a US-based for profit company, you can’t raffle your property through them. Most of the properties listed on Omaze’s raffles exceed a value of £1 million. Raffle House however, allows interested vendors to contact them on their FAQS. Vendors must provide:

* Estimated sale price
* Location
* Ideal completion date
* Brief description 
* Photos

## Are property raffles safe to take part in?

Raffles are generally safe to take part in, however, there have been some big issues with their legitimacy.

**Failure to reach completion**

The number of raffles that actually reach completion is extremely low. As mentioned earlier, in 2020 there were over 93 competitions, and in 2021 there were 96. Of these competitions, 25 people won a house in 2020 (27%) and only 13 (13.5%) have won so far in 2021. Indeed, [research by Winmydreamhouse.com](https://www.walesonline.co.uk/news/homes-property/property-news/warning-over-house-raffles-offer-20763458) found that, while the raffle sector is currently popular, only 19% of all competitions end with a winner. Many end up terminated with an undisclosed cash sum being awarded at the end. 

**Why do so many property raffles fail to complete?**

Unlike lotteries, raffles rely on a certain amount of tickets being sold to participants. The owner of the property needs to make back its value in ticket sales (and hopefully a little extra), otherwise the whole point of the raffle becomes obsolete. If tickets are especially cheap, then organisers must sell large quantities in order to justify the competition.

**What do winners get if raffles fail to complete?**

The prize depends on the terms and conditions of each independent competition. 

Some raffles, thanks to increased funding, are more scrupulous than others. Accomplished, long-running prize draws like Omaze have taken great lengths to remain palatable in the public eye. According to their [FAQS](https://omaze.co.uk/pages/faqs), there will always be a ‘guaranteed winner for the Omaze Million Pound House Draw’, and a minimum donation to charity will be guaranteed ‘no matter what happens’. In their ‘Win a house in Ascot’ draw, the small print reads: ‘_80% of the net proceeds of the draw will go to the charity, with Omaze being paid 20% (....) irrespective of sales, Omaze has guaranteed a minimum total payment of £100,000 for the charity_.’ 

Other raffles, such as Raffle House have been engaged in a number of controversies regarding prize money. [As reported by ThisIsMoney](https://www.thisismoney.co.uk/money/mortgageshome/article-7314947/Raffle-House-winner-given-173k-home-instead-promised-650k-London-flat.html), Raffle House competition winner Lois Wright received only £173,000 despite winning the draw for a £500,000 property in Brixton. Meanwhile, the company took 50% of the funds raised by ticket sales, citing that it needed the funds to ‘get up and running’.

**Undisclosed problems with the properties**

One question you should always ask yourself before entering a raffle is: why has the homeowner decided to enter their property in a raffle, rather than sell it the traditional way through an estate agent?

Properties won through raffles have a history of being fraught with problems. In one well publicised case, a multi-million pound property in the Cotswolds offered by Omaze, was found to be [extremely prone to flooding](https://www.thisismoney.co.uk/money/news/article-9266547/The-2-5m-prize-draw-dream-home-leave-winner-marooned.html), costing at least £35,000 to fix.

In traditional transactions, properties are investigated thoroughly through surveys sanctioned by mortgage providers and buyers. In a prize giveaway, terms are much murkier, so problems can be concealed or omitted. 

**What can you do if the prize property has undisclosed problems?**

If you win a prize property, but a survey reveals undisclosed problems, you have a few options. You could contact the raffle company or vendor, and see if they’re willing to make amends. If they are unwilling, you could hire a solicitor and discuss your next options.

The ASA makes it clear that:

* The award prize must be described or a reasonable equivalent.
* Runners should not mislead participants by leaving out significant conditions.

**Potential to lose money on the property**

Another problem with property raffles is their potential for extra costs and expenses. Traditional fees like Stamp Duty Land Tax, property searches, and conveyancing can crop up when you least expect them.

## Our advice to raffle participants

If you’re thinking about entering a property raffle, remember to check the following:

**How much are tickets?**

One of the main attractions of these raffles is that they are relatively low-risk, meaning they cost little to enter. That being said, the cheaper the tickets are, the less likely the competition is to, statistically, reach completion. 

**Has the house already been on the market?**

Use the Land Registry to find out if the property has been on the market before. You can see if there’s been previous issues with the property, or whether there are any outstanding bills.

**What do the terms and conditions say?**

Check the small print and see if there are any underlying terms and conditions that hinge on the success of the property raffle. Ideally, the winner should receive the prize property no matter how many tickets are sold.

## Are house raffles here to stay?

Throughout the history of competitive television, houses have been a common prize. As far back as 1968, the NBC show Dream House (1968 - 1984) saw US couples compete for the home of their dreams. Today, shows like Interior Design Masters, Grand Designs, and Dream Home Makeover garner thousands of viewers every episode. Like house raffles, they reflect the public’s enthusiasm for property and escapism. Where they differ, of course, is monetary input. 

While televised property competitions are likely here for the long haul, are house raffles to join them?

Ultimately, the ongoing popularity of house raffles depends on two factors:

* How successful they are
* The state of the property market 

The general lack of success of house raffles has been well documented by many UK newspapers, including The Guardian, The Sun and The Metro. As a result, they have a rather low public opinion. In a [poll on PropertyInvestorToday.co.uk](https://www.propertyinvestortoday.co.uk/breaking-news/2021/6/house-raffles--are-they-a-bargain-of-a-lifetime-or-just-a-con#polls), only 9% of pollsters voted that they were ‘a legitimate route to homeownership on the cheap’, while 42% voted they were ‘a money-making unregulated con’, and 49% voted they ‘could be a good thing in a far more regulated, transparent market’. Meanwhile, a survey by Winmydreamhome.com indicated that nearly three-quarters of participants found house raffles to be either ‘very untrustworthy’ (39%) or ‘somewhat untrustworthy’ (37%). The majority of those surveyed (94%) felt there should be  more transparency on how ticket income is spent.

If the rise of raffles is linked to a lack of affordability in the property market however, then it’s likely that they’re here to stay. [The Telegraph’s Rachel Mortimer](https://www.telegraph.co.uk/property/buy/acute-shortage-homes-sale-last-2022/) has reported the ‘acute’ shortage of homes for sale could last well into 2022. With a depleted stock and a sustained demand, it’s unlikely that house prices will go down before the end of 2021.

## Can I raffle my house?

Yes you can, but raffles are still very much murky territory. At the very least, you would need to hire a solicitor to ensure everything is permissible with the Gambling Commission and ASA. You would need to apply for a license, and donate some of the proceeds to charity.

Property raffles: fad or future

House raffles see thousands of people buy tickets for a chance to win the home of their dreams. Though tempting for some, are they actually a good investment?

House Raffles | Everything you need to know

Property raffles: a fad or the future?

Created by the founders of Purplebricks, Boomin is the latest newcomer to the saturated property portal market. With a variety of features, including a valuation tool that’s pinned as ‘the most interactive and accurate’ house price calculator available, Boomin claims to be the most powerful property site ever made. Conceived as an answer to the duopoly of Rightmove and Zoopla, can it succeed where OnTheMarket failed, and offer homesellers an innovative alternative? We take a look at Boomin and review their services and tools.

## What does Boomin do?

Boomin is a new property portal from the creator of Purplebricks, Michael Bruce. Like traditional property portals, Boomin allows estate agents to list properties that are currently for sale. Potential buyers can browse through listings by area, price range and property type. The website also offers an ensemble of tools for users to play around with. 

## How is Boomin different from other property portals?

Seeking to outpace its competitors, Boomin hopes to provide customers with a [richer, deeper view of the property market](https://www.boomin.com/about-us) through technological innovation. Some of their top tools include:

* **SmartVal**: Online valuation tool backed by real estate agents
* **Secret Properties**: Get a secret preview of properties as they’re evaluated
* **MatchMaker**: Get alerts for property types you’re interested in
* **Sneak Peek**: Get a sneak preview of properties before they’re advertised on the wider marker

Like Zoopla, Boomin offers a free online valuation tool - but with a twist. SmartVal combines a real agent’s valuation with the results expected from an automated service, providing a valuation within 15 - 20 minutes. Elsewhere, MatchMaker and Sneak Peek provide users with ‘exclusive’ content.

## Boomin’s online valuation tool

Released in July 2021, the SmartVal valuation tool is one of the biggest features from Boomin’s marketing campaign. Online valuation tools are quick alternatives to valuations from estate agents, and mostly cater to people who aren’t committed to selling.

While traditional online valuation tools use algorithms to calculate property value, SmartVal bridges the gap between estate agents and automated services.

Estate agents registered with Boomin will receive a homeowner’s valuation request and have five minutes to accept it, then 15 minutes to provide a property valuation. Usually, in-person valuations take around one hour to complete, while online valuation tools take up to five minutes. SmartVal seeks to bridge the gap with their hybrid model by taking only 20 minutes.

### How does SmartVal work?

When you use SmartVal for the first time, you will follow a process similar to this:

1. You’ll be asked to enter some details about your home: the type of property, number of rooms (bedrooms, bathrooms, reception room). You can also upload photos of your rooms.
2. You can choose up to three agents to evaluate your property.
3. When you submit your valuation request, Boomin will send agents your data and photos, as well as analytical data such as comparable live listings and demand.
4. Your chosen agents have five minutes to accept your SmartVal request. If they accept, they’ll have up to 15 minutes to deliver a valuation.
5. Agents provide you with a valuation range and a suggested asking price. 
6. When you select your agent, they’ll receive your contact details and arrange a follow up call or visit.
7. If one of your agents doesn’t respond to your valuation request in five minutes, Boomin will offer alternatives.

## SmartVal pros and cons

With SmartVal, Boomin clearly wants to offer homesellers something both fresh and accurate. Does it succeed?

### SmartVal Pros

* **Time efficient**

The service is apparently time efficient. Users should expect to wait for only 15 minutes before a valuation from a certified agent arrives in their mailbox.

* **Valuation from a real agent**

You get a valuation from an estate agent, not a mathematical algorithm like other online tools.

* **You can pick three agents**

Here at GetAgent, we always encourage home sellers to get valuations from at least three different agents. With three valuations you can clearly see which one promises the best, realistic outlook for your property. Boomin clearly agrees too, as SmartVal encourages you to pick three.

### SmartVal Cons

* **Time constraints**

Can agents really offer a quality house valuation under stress-inducing time constraints? Though in-person valuations can take up to a full hour, this is because there’s a lot to inspect, even in the most plain of properties. With online valuations on the other hand, their five minute automated process means they won’t be as exact as an estate agent’s valuation, but they’ll give a good benchmark. With a time sensitive 15 minute valuation service, Boomin agents might end up making reckless or uninformed decisions in the guise of ‘accurate’ valuations.

* **Out of hours requests**

With a service that guarantees close to immediate feedback, how quickly will Boomin agents respond to out-of-hours requests? For most people, this is their only free time.

* **Accuracy**

How accurate is Boomin’s valuation tool? While more accurate than an online valuation tool, Boomin’s valuation tool ‘SmartVal’ will never be as accurate as an in-person valuation from an estate agent. Valuations should always take goals and intent into account, because homeowners who want a quick sale might warrant a lower selling price. Valuations without prior conversation with a home seller about their needs, can never claim to be 100% accurate. 

There’s a reason that potential buyers attend viewings when they find a property they like. There’s more to properties than photos and descriptions, including all the things that make your house a home. If buyers need to visit a property before making an offer, shouldn’t agents do the same before vendors can trust their valuation? 

Your initial selling price is arguably one of the most important things in your property sale. It’s the basis for all future offers. Is it best practice then, to base it on a rushed 15 minute valuation from an agent who’s never been to your property before? 

If you’re looking for an accurate house valuation, look no further than our free Agent Comparison Tool. Drawing on data from the Land Registry and property portals, our tool allows you to compare top performing agents in your local area. Once you’ve picked three you like, you can request a free valuation. Fast, easy to use, with zero obligations.

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## Boomin Secret Properties

### What is Boomin Secret Properties?

If a property is in the midst of being evaluated, Secret Properties allows agents to list certain aspects on their website. As its namesake suggests, Secret Properties won’t actually give enough information for buyers to identify the property. Details such as the number of bedrooms, bathrooms, catchment areas however, will be available. 

Essentially, buyers can register interest in a property before it comes to market. In theory, these properties should sell faster than standard properties.

**Secret Properties: A closer look**

On the one hand, the Secret Properties tool is a good way to help sellers assess demand. With buyers registering interest pre-sale, this should help properties sell faster.

On the other hand, if people don’t express enough interest, a feature like this might not only be redundant, but have the converse effect of dissuading people from selling. Usually, these types of features roll out at a late stage where there’s a good deal of buyer interest in your portal - not when you’re only just establishing your brand and people are still unsure of your service.

## Boomin MatchMaker

### What is Boomin MatchMaker?

Matchmaker is Boomin’s ‘property dating service’. Like Secret Properties, it gives Boomin users exclusive access to properties that aren't on the market yet. So how does Boomin’s MatchMaker work?

**MatchMaker sellers**

If you’re thinking of selling, you can make an advert about your home to gauge buyer interest. You enter a few details, including key features and ballpark sale price, then your advert goes live. Interested buyers can click on your advert, and Boomin will ask if you want to progress with an estate agent. 

**MatchMaker buyers**

If you’re a buyer, you can choose from a number of property preferences, including ideal moving locations, approximate budget and must-have features. These affect the type of properties that appear - much like a dating app. Your ‘advert’ then gets published, and you’ll be notified if there are compatible sellers in your chosen areas. You can then choose which properties you’re interested in.

**MatchMaker: A closer look**

While an interesting idea, MatchMaker could be seen as going against the nature of the property market. The reality of property transactions is compromise. While you might think your house is worth a lot of money, the reality is that it’s probably worth a little less. Likewise, buyers will likely create adverts for homes that are out of their budget.

Matchmaking buyers and sellers might create unrealistic expectations that opposing parties can never meet. Property transactions are about tempering dreams to meet realistic expectations.

## Boomin Sneak Peek

### How does Boomin Sneak Peek work?

Once a Boomin agent has been instructed, they can offer a ‘sneak peek’ at the property for a period of 14 days before it’s fully listed on other portals. In practice, Boomin users get early access to properties before they are listed on Rightmove, Zoopla and OnTheMarket.

**Boomin Sneak Peek: A closer look**

While framed as a helpful service, it’s hard to see how Sneak Peek actually helps homeowners, when it actively restricts the amount of marketing exposure they get. It feels like an attempt to capitalise on exclusive properties, with less service to homeowners, and more for Boomin’s portal.

## Boomin fees

Boomin is free to use for home sellers and buyers. If users buy products and services through agent instructions, such as project management utilities, Boomin will earn referral fees. 

Like traditional property portals, Boomin charges estate agents a basic fee to list their properties, plus additional fees for marketing services.

### How much do Boomin charge estate agents?

Like the online agency Purplebricks, Boomin charges different rates for London and the rest of the UK. These base rates for agents are divided into three categories: 

1. Lettings only
2. Sales only 
3. Sales & lettings

Boomin’s fees for these categories are:

| Category | London fee | Rest of the UK fee |
| ------------- | ---------- | ------- |
| Lettings only | £250 | £150 |
| Sales only | £400 | £300 |
| Sales & lettings | £499 | £399 |

## Boomin reviews

Currently, Boomin.com has a 3.7 score on TrustPilot from 166 user reviews, indicating an ‘Average’ rating. Most of Boomin’s poor reviews appear to stem from complaints around usability and poor agent performance. On the other hand, Boomin’s positive reviews praise the website and its overall performance. 

Across the web this gives Boomin an __average rating of 2.5/5__

```json
  {
   "@context": "https://schema.org/",
   "@type": "AggregateRating",
   "itemReviewed": {
    "@type": "LocalBusiness",
    "name": "Boomin",
    "url": "https://www.boomin.com/",
    "address" : {
     "@type": "PostalAddress",
     "streetAddress": "59-61 Charlotte St",
     "addressLocality": "Birmingham",
     "addressRegion": "West Midlands",
     "postalCode": "B3 1PX",
     "addressCountry": "GB"
    }
   },
   "ratingValue": "2.5",
   "ratingCount": "219"
  }
```

In [an article published on June 7th 2021](https://propertyindustryeye.com/boomin-founder-michael-bruce-responds-to-negative-trustpilot-reviews/), Michael Bruce told Property Industry EYE that “The portal industry scores poorly on reviews. I am determined that Boomin will break the mould and that our leaders will be visible, available, responsive and deliver on our promises.   Our reviews over time will no doubt reflect this ambition. In the meantime, we will listen and act.”’

## Boomin vs Rightmove

Boomin wants to upstage the current major property portals. So now, nearly six months after its April launch, how is the newcomer faring against Rightmove?

**TrustPilot Reviews**

At the moment, Boomin’s 3.5 score hedges Rightmove’s 3.2. However, Rightmove has received reviews from over 600 users, whereas Boomin has only received reviews from 166 users. Most of Rightmove’s recent complaints centre around their Integrated Tenant Referencing feature, with many claiming agents were ‘unresponsive’.

**Popularity and Reach**

Reviews aside, success is measured by popularity. Over the last 12 months, Boomin has a record of 49.5K monthly searches in the UK. Rightmove on the other hand, dwarfs by comparison, with 13.6 million searches. This goliath sum matches its 80% share of the market. Listing your property on Rightmove will likely allow you to reach more potential buyers than Boomin. But, with a number of useful features with which buyers can elicit interest, Boomin buyers might be more inclined to buy.

**Utility**

Due to the wide variety of people interacting with property portals, there’s a number of ways you can measure usefulness. Agents use portals for business, while sellers and buyers use portals to either monitor their listings, or browse available properties.

Ultimately, one of the best ways to measure a portal’s utility is to measure the number of agencies currently advertising listings. They directly affect:

* The quantity of properties available for buyers to browse
* The number of sellers likely to use the platform to sell

In their annual report from 2020, Rightmove announced its agency numbers were 19,197, a decrease of 3% from 19,809 in 2019. Boomin, on the other hand, has 6,300 registered agencies. As it’s only been six months since launch, whether Boomin can increase its numbers and truly threaten Rightmove, remains to be seen.

## Is Boomin any good?

While Boomin has potential, it may not not be a good choice for home sellers right now. Without a bigger market share, using the portal might limit the number of potential buyers you can reach through Rightmove and Zoopla. This could lead to you getting less money from your house sale.

A few years ago, OnTheMarket attempted to uproot the property portal market. While OTM are still going, they have not been met with the enthusiasm they predicted.  All of their founding agents have since returned their business to Rightmove and Zoopla. This begs the question, why would the industry need another property portal? What else can Boomin do to change the tide?

The problem seems to be that, rather than offering useful services, Boomin strives to distinguish itself from its rivals by offering exclusive content to buyers. Even with their micro-ingenuities, there isn’t enough stimulation to encourage an exodus of users from the duopoly of Rightmove and Zoopla.


Boomin review: Taking a look at the new property portal

Created by the founders of Purplebricks, Boomin is the latest newcomer to the saturated property portal market.

Boomin Review - How they work and are they any good?

The Stamp Duty Land Tax (Temporary Relief) Act was introduced by the government in July 2020 to combat the weight of the COVID 19 Pandemic on the housing market. Now, a year later, and nearly 4 months after Stamp Duty began its slow return to normal rates, our data shows that first time buyers are paying up to 31.5% more for properties across England.

### What is the Stamp Duty Holiday (Stamp Duty Land Tax Temporary Relief Act)?

To prevent COVID 19 Pandemic from devastating the housing market, the government intervened with the Stamp Duty Land Tax (Temporary Relief) Act. The Act, also known as the Stamp Duty Holiday, suspended and altered some of the existing rates for SDLT to incite interest in the housing market and galvanise the economy. 

From 8th July 2020 to 30th June 2021, home buyers could pay highly reduced Stamp Duty rates, including zero tax on properties priced under £500,000.

* **Up to £500,000**: Zero SDLT
* **£500,001 to £925,000**: 5%
* **£925,001 to £1.5 million**: 10%
* **Above £1.5 million**: 12%

### How does the Stamp Duty Holiday affect house prices?

As Stamp Duty is a tax on home buyers - the lower the rates, the more money buyers have in their pockets. The holiday, coupled with the severe shortage of homes on the housing market, and a general lack of funds among average-wage home buyers, has made the demand for property skyrocket. With home sellers quick to take advantage of this situation, there’s been a big increase in property prices across the country.

If you’re interested in how house prices are looking in your area, check out our [free House Prices tool](https://www.getagent.co.uk/house-prices). It provides up-to-date information on average house prices as well as their average selling time.

### The average first time home buyer is paying 11.7% more

In July 2020 just before the SDLT holiday was introduced, the [average price of a first-time buyer home](https://www.getagent.co.uk/house-prices) was £212,166. However, our latest figures show the average first-time buyer home now costs £236,982, an increase of £24,816 or 11.7%.

### Biggest increases by region

The North West has seen the largest first-time buyer price increase by region, with the average first-time buyer now paying £168,820. That’s a 16.9% jump since July last year. 

Elsewhere in the north, Yorkshire and Humber have seen a rise of 14.8% and the North East has seen a rise of 13.4%. In the Midlands region, the West Midlands has seen a rise of 13% and the East Midlands a rise of 12.9%

* **East Midlands**: 12.92%
* **East of England**: 11.29%
* **London**: 5.28%
* **North East**: 13.41%
* **North West**: 16.90%
* **South East**: 8.94%
* **South West**: 11.28%
* **West Midlands**: 13.08%
* **Yorkshire and The Humber:** 14.77%
* **England**: 11.70%

### Biggest increases by local authority level

Richmondshire, North Yorkshire, has seen the largest increase in average price for a first-time buyer. Originally £178,974 in June 2020, today the average price has risen to £235,425, an increase of £56,451 or 31.5%

In Rossendale, Lancashire, the average first-time buyer property now costs £147,417, having risen 24.3% since the introduction of the SDLT holiday.

* **Richmondshire:** 31.54%
* **Rossendale:** 24.25%
* **North Norfolk:** 23.09%
* **North Devon:** 18.95%
* **Cotswold:** 18.06%
* **Hastings:** 17.94%
* **Shropshire:** 17.73%
* **West Devon:** 17.71%
* **Derbyshire Dales:** 17.62%
* **Salford:** 17.18%

### Are there any exceptions?

Not everywhere in England has seen a big increase in property price. In some of the more affluent areas of London, the average property price for first time buyers has dropped significantly.

In Kensington & Chelsea for example, the first time buyer’s home cost £1.1 million in July 2020. Now however, the price has dropped to just over £1 million, a decrease of - 6.5%. 

Other decreases include:

* **Hackney:** - 4.1%
* **City of London:** - 4%
* **City of Westminster:** -3% 
* **Southwark** -1.4%

### What the Stamp Duty Holiday means for first time home buyers

While the Stamp Duty Holiday has been a huge success in injecting life into a threatened housing market, it’s undeniable that first time buyers have been marginalised. While many existing homeowners have benefited from a boost to the value of their property, most first-time buyers are worse off when it comes to taking that first step onto the property ladder. 

### What is Stamp Duty?

Stamp Duty Land Tax or SDLT is a government tax on property and land transactions. The amount of tax you pay is proportionate to the amount of money you spend on property or land.

Young woman sitting at a desk with papers and thinking about taxes.

pexels-mikhail-nilov-6964107

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.

First time buyers pay 31% more due to Stamp Duty Holiday

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.


With the Stamp Duty deadline over and done, the UK housing market has been left to recuperate following its blazing period through March to June. As many experts predicted, house sales have experienced a decline. House prices however, are continuing to soar thanks to a sustained demand from UK house buyers. This demand is particularly notable in England’s coastal addresses. An onslaught of buyers looking to relocate from cities has seen the average price of some seaside areas increase by over £100,000.

### UK house sales nosedived in July 

On the back-end of June’s Stamp Duty deadline, July saw UK house sales nosedive by almost two-thirds after home buyers rushed to complete the purchase of their new homes. While the end of the Stamp Duty deadline has tempered the number of house sales, their prices are still on the high. [June's UK House Price Index report](https://landregistry.data.gov.uk/app/ukhpi "UK House Price Index") observed an increase of 4.5% with an average price of £265,668.

Diminishing house sales and rising house prices have done nothing to reduce buyer demand, with Zoopla reporting an increase of 20.5% above the 2020 average. [The Guardian](https://www.theguardian.com/money/2021/aug/24/uk-house-sales-stamp-duty-holiday-deadline-tax-break "The Guardian - UK House Sales") has cited ‘the pandemic and growth of home working’ as key factors to this strong demand. 

With almost two years of lockdowns under their belts, it's no wonder that the average UK buyer is searching for greater space and comfort. Unfortunately, [The Telegraph’s Rachel Mortimer](https://www.telegraph.co.uk/property/buy/acute-shortage-homes-sale-last-2022/ "The Telegraph - Acute Shortage") has reported this ‘acute’ shortage of homes for sale could last well into 2022. With a depleted stock and a sustained demand, it’s unlikely that house prices will go down before the end of 2021.

### Home buyers flock to coastal addresses

Last month, [we revealed the top eight postcodes](https://www.thesun.co.uk/money/15723069/eight-postcodes-house-prices-rocketing/ "The Sun - Eight Postcodes") where house prices surged by almost £100,000, with sunny countryside counties like Cornwall and South Hampshire among the most popular. 

This heightened interest in coastal addresses suggests a shift in buyer attention from traditional city hotspots. In a [similar study of 120 coastal areas](https://www.rightmove.co.uk/press-centre/coastal-homes-sell-twenty-days-quicker-than-pre-pandemic-as-city-to-seaside-demand-doubles/ "Rightmove Coastal Homes Study"), Rightmove recorded an increase of 115% in city dwellers enquiring about homes for sale in coastal locations. They concluded that this interest could increase competition among buyers.

While coastal addresses are no doubt seeing a surge in popularity, Zoopla has curtailed any doubts that London might suffer as a result. In [their 23rd July press release](https://www.zoopla.co.uk/press/releases/zoopla-reveals-how-property-size-impacts-buyer-demand-for-new-homes/ "Zoopla - Property Size"), they reported that the demand for properties is ‘more concentrated’ in London, with average buyers searching for new homes within a five mile radius.


a folded newspaper lying next to a cup of coffee on a wooden table 

property-news-may-14

House sales nosedive, while demand continues to inflate prices.

Property News August 27th | House sales nosedive

Property news of the week: August 27th 2021

### What is the mortgage guarantee scheme?
The [mortgage guarantee scheme](https://www.gov.uk/government/publications/the-mortgage-guarantee-scheme) is a temporary government initiative designed to encourage lenders to increase the number of low deposit options available to those looking to buy a property. The scheme will run from April 2021 to December 2022. 

The scheme allows lenders to purchase a government guarantee against a low deposit mortgage. If the borrower is unable to keep up repayments, the government will compensate the lender for a portion of their losses. 

The guarantee scheme is designed to support mortgages with a loan-to-value of between 91% and 95%. This means a borrower would only need to put forward a deposit of between 5-10% of the value of the property. 

In practice, borrowers will see no difference if their mortgage falls under the scheme. You'll make your mortgage applications in the same way, and will still be liable to make your mortgage payments each month. And, if you fail to keep up with their repayments, your home may be repossessed - as with a normal mortgage. 

The guarantee scheme is solely designed to make lending more appealing to banks, who have reduced the number of 95% mortgages available during the period of the coronavirus pandemic. 

### Am I eligible for the mortgage guarantee scheme?

To be eligible to borrow under the mortgage guarantee scheme, you'll have to fit the following criteria:

* **The property you want to buy is residential, and you plan to live there**

Mortgages for commercial properties, or pieces of land, aren't included in the scheme. You also can't apply for this type of mortgage if you intend to rent out the property.

* **The property you want to buy is based in the UK, and is worth less than £600,000** 

* **The loan-to-value (LTV) of the mortgage must be between 91%- 95%** 

Loan to value is the percentage of the property's value that's covered by the mortgage. A 95% loan to value means that you'll pay 5% of the cost of the property upfront, and the bank will lend you the remaining 95%. For example: if you want to buy a £200,000 flat with a 95% LTV mortgage, you would pay £10,000, as a deposit, and the bank would pay the remaining £190,000. When you make monthly repayments on your mortgage, you're actually buying back this 95% share from the bank. 

* **Repayment mortgage product (rather than an interest-only mortgage)** 

This means you'll pay back both a portion of your loan, and interest, each month. To read about the other types of mortgages available, [head here.](https://www.getagent.co.uk/guide/mortgages/types-of-mortgage) 

* **Meet the standard affordability requirements of the lender** 

This often takes the form of a credit score check, and assessment of your annual income and outgoings. As a general rule, mortgage lenders will not lend more than 4.5 times your annual income. So, if you earn £30,000, you will be able to borrow a maximum of £135,000. 

Individual participating lenders may have additional eligibility criteria too.

Several banks, including Santander, NatWest, and Barclays will not allow you to apply for a 95% mortgage if you're hoping to buy a new build property. This is because many lenders view new builds as a riskier investment, because they are often bought at a premium, and struggle to keep their value in the short term.   

Others have placed their own value caps on the mortgage products. For example, Barclays has limited guarantee scheme [borrowing against flats to £275,000](https://www.barclays.co.uk/mortgages/help-to-buy/mortgage-guarantee-scheme/), and Santander has set their [limit against flats at £400,000](https://www.santander.co.uk/personal/mortgages/new-customers/mortgage-guarantee-scheme) - rather than the maximum £600,000 laid out in the government guidance. 

For full information on eligibility, we'd recommend talking to each lender, or a mortgage broker. They will be able to assess your individual circumstances, and let you know whether you meet all the relevant criteria. 

### Pros of the mortgage guarantee scheme

There may not be much difference, in practice, with paying off a guarantee scheme mortgage, but that doesn't mean there aren't any positives to the scheme. For borrowers, some of the pros include: 

* **Longer fixed term period options**

'Fixed rate' mortgages have a period of time - usually between 2 and 5 years - where the interest rate is fixed. After this, your mortgage will switch to a 'Standard Variable Rate', which usually follows in line with the Bank of England's interest rate. A fixed rate mortgage makes it easier to plan financially, as you'll not be hit by any surprise increases to your monthly repayments if the Bank of England rate suddenly increases. One of the conditions of the mortgage guarantee scheme is that lenders must offer at least one 5-year 91-95% mortgage product. 

* **Smaller deposit** 

As this scheme is designed to increase the number of 91 to 95% loan to value mortgages available, it should increase the number of low deposit mortgage options available to borrowers. If you fulfil all the other affordability criteria this means there'll be a lower upfront cost to buying a house. 

* **Repay mortgage in the normal way**

Unlike the Help to Buy schemes - which require you to make a financial agreement with the government - this scheme allows you to take out a mortgage in the normal way. There are no special mortgage applications; you won't owe part of your mortgage to the government (as with the equity loan), and you'll own the entirety of the property (unlike with shared ownership). 

* **These low deposit mortgages are available to both first time buyers and home movers**

* **Can be used for 'second hand' properties** 

Unlike other government schemes - such as Help to Buy - this scheme isn't limited to new build properties. 

### Cons of the mortgage guarantee scheme

However, there are some disadvantages too. Before you decide whether to go ahead with one of these guaranteed 91% to 95% mortgages, make sure you also consider the following: 

* **Expensive** 

As a general rule, the higher the percentage you borrow against a property, the higher the interest rate on your repayments. This means you may end up paying more overall. Consider whether it's worth saving up a larger deposit, before you commit. 

* **You'll still need to meet the other affordability criteria** 

While these mortgages mean you only have to put up a 5% deposit, they don't remove the lending limit of 4.5 times your annual income. This means if you earn an average salary, you may still find it hard to borrow the amount you need to get onto the housing ladder.

For example, if you want to buy a house that costs £200,000, and have a 5% deposit of £10,000, you will need to be earn £43,000 a year in order to qualify. If you earn the UK average of [£31,500](https://www.cosmopolitan.com/uk/worklife/careers/a33179/average-job-salaries-uk/#:~:text=The%20average%20salary%20(UK)%20for%20115%20different%20jobs&text=The%20survey%20found%20the%20average,3.6%25%20on%20the%20previous%20year.), you are likely to be eligible to borrow around £141,750. With a 5% deposit, this means you could afford a property worth just under £150,000. 

* **Limited time offer** 

The scheme is temporary, and will only run between April 2021 and 31 December 2022. While it's hoped that many lenders will continue to offer low deposit mortgages after this, without government support, there may still be a drop in the number of products available. 

* **New build properties are often ineligible** 

Many lenders have additional criteria for the mortgages that fall under this government scheme. Most have decided that they will not offer low deposit mortgages on new build properties, as they pose too risky an investment for the lender. 

Parent and child sat at wooden desk hug as they look at computer screen in new home

what-is-the-mortgage-guarantee-scheme

The mortgage guarantee scheme is a temporary government initiative designed to encourage lenders to increase the number of low deposit options available. 

95% Mortgages | What is the Mortgage Guarantee Scheme?

The mortgage guarantee scheme is a temporary government initiative designed to encourage lenders to increase the number of low deposit options available to those looking to buy a property. We look at the pros, cons, and eligibility criteria. 

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