The use of cryptocurrency as a mode of payment for property found its way into the U.K.’s residential property market, with the first sale of a luxury house in Essex.
An anonymous software developer acquired a four-bedroom home for £350,000, which they paid with the prevailing Bitcoin exchange rate on the date of sale, according to real estate developer Go Homes.
If you are a landlord, MS Webb & Co. notes it is still unlikely to use a court bailiff service in recovering rental payments in the form of Bitcoin. While the virtual currency has yet to establish a solid footing in the property market, it has slowly begun to gain traction.
Go Homes has also planned to sell a £595,000 four-bed townhouse in Hertfordshire in exchange for Bitcoin. Another property developer, The Collective, became the first British company in September to accept Bitcoin as payment for rental deposits.
A single Bitcoin amounted to around $10,700 as of November. It has then risen to more than £18,000. The buyer of the detached house in Colchester forms part of a 32-unit development at Elmstead Green.
The person decided to invest in real estate after successfully trading in the virtual currency. They would likely rent out the house with Bitcoin as payments.
Go Homes group sales director Ed Casson expects the Bitcoin to be a more common payment option for homes in the next five years. This trend will take place as buyers and sellers find it faster to close deals since the volatility of the cryptocurrency leads the former to acquire houses outright without a deposit.
However, financial experts said that price fluctuations of the Bitcoin could be risky for prospective buyers and sellers.
U.K.’s housing market has kept up with the changing pace of payment preferences among consumers. If you have enough Bitcoins, would you use them to buy a house?