Many of the property developers are finding ways to spot derelict properties due to a chronic shortage of housing.
The number of properties currently for sale in London, where the crisis is worst, is around half the long-term average. The housing crisis is driving up prices and causing a scramble among occupiers and investors, reported the Telegraph.
One firm has come up with a radical solution by paying people for providing "tips" about potential developments, such as rundown or derelict properties whose owner might be convinced to sell.
In order for the potential properties to be qualified, it must be residential, within the M25, and is not up for sale. If occupied, they "must appear derelict."
If the house is already on the market, you won't get a voucher.
There's a bigger pay for the spotters: if a transaction eventfully pushes through, the firm pays the original tipster one percent of the price paid. Assuming the price of the house is £450,000, that would be a £4,500 "bonus" for the tipster.
One example is Michael Tsiagbe, 24, a financial surveyor who describes himself as a property fanatic. He has already spotted around 20 properties, for which he has received £500 in vouchers.
Although none of his spotted properties has yet entered into a transaction, Tsiagbe is optimistic that at least a few will finally go through.
On the other hand, Matt Philpott, 32, used to pass a dilapidated home on his walk to work as a salesman in online advertising. That time, he was living in Balham, South-West London, and he had no idea that spotting an empty home could net him thousands of pounds, relayed This is Money.
Initially, he received a £20 voucher from YouSpotProperty for the properties he spotted. But after a couple of months, he was informed that the firm was buying the property, giving him a reward of £8,800, one percent from the purchase price, Philpott said of the event, 'I felt like I had won the lottery and I was so happy.'
