Discount Market Sale
Bringing Affordable Home Ownership to Life
Discount Market Sale (DMS) properties offer an innovative way to provide affordable home ownership options for eligible buyers. These homes are sold at a significant discount—often 20% to 40% below market value—making them more accessible to first-time buyers and those with moderate incomes. The discount is held in perpetuity ensuring the homes remain affordable for future purchasers.
Highlight Housing specialises in supporting house builders to successfully market and sell Discount Market Sale properties. Our expertise ensures that house builders can navigate the complexities of eligibility criteria, legal requirements, and targeted outreach. We handle the entire sales process, from creating tailored marketing strategies to guiding potential buyers through the application and purchase stages.
How does it work?
Discount Market Sale Properties
Highlight partners with developers and house builders to promote Discount Market Sale (DMS) properties, ensuring these affordable homes reach eligible buyers effectively.
Eligibility and Application
Prospective buyers of Discount Market Sale (DMS) properties must meet eligibility criteria set by the local authority or housing provider. These often include being a first-time buyer, earning below a specific income threshold, and having a local connection. Buyers need to apply to confirm their eligibility, providing proof of income, residency, and mortgage approval.
Purchasing Process
DMS properties are sold at a fixed discount (typically 20% to 40%) below market value. Buyers must secure a mortgage to cover the discounted price and may need legal and financial advice to understand scheme conditions, such as resale restrictions.
Ownership and Resale
Once purchased, buyers own the property but are bound by the scheme’s conditions. If the property is sold, it must be at the same discount rate to another eligible buyer, ensuring it remains affordable for future generations.
This process provides an accessible route to home ownership, making housing more affordable while maintaining long-term community benefits.
Eligibility Criteria
Varies depending on the local authority. Common requirements include:
First-Time Buyer Status: Many schemes prioritise individuals who have not previously owned a home.
Income Limits: Applicants often need to have a household income below a certain threshold, which can vary by region.
Local Connection: Some programs require buyers to have a connection to the area, such as current residency, employment, or family ties.
Housing Need: Eligibility may be restricted to households demonstrating a need for affordable housing, such as those living in overcrowded conditions or unable to afford market prices.
Mortgage Approval: Prospective buyers must typically secure a mortgage to cover the purchase price of the discounted property.
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FAQ
First Homes Explained
How does the discount work?
DMS properties are homes sold at a discounted price, typically 20-40% below market value, to make home ownership more accessible to eligible buyers.
Can I sell a DMS property?
DMS properties are homes sold at a discounted price, typically 20-40% below market value, to make homeownership more accessible to eligible buyers.
Do I need a mortgage to buy a DMS property?
Yes, buyers typically need a mortgage to cover the discounted price. Many lenders are familiar with DMS schemes and can provide suitable financing options.
What kind of properties are available under DMS?
DMS properties include new builds and, in some cases, resales. They range from apartments to houses, depending on the development.
What are the costs?
Each month, you’ll need to cover the following expenses:
•Mortgage payment: This applies only to the discounted price.
•Service charge: Covers maintenance of communal areas in your building or development.
•Home Ownership costs: Includes household bills, interior upkeep, and contents insurance.
Other costs may apply.
Are there restrictions on how I use the property?
DMS properties must usually be your primary residence and cannot be rented out or used as a second home unless specifically allowed under the scheme rules.
What happens if my financial circumstances change?
Ownership of the property remains unaffected, but if you decide to sell, the DMS conditions still apply, and the discount must be maintained for the next buyer.