Discounted market sales housing

The Discount Market Sale (DMS) scheme helps buyers access affordable housing.

Under the scheme, housing developers sell properties at a discount (at least 20% below open market values).

If you buy a home under the scheme, you will own 100% of it. However, you must then pass the discount on to any future buyers.

We have produced:

Eligibility criteria

If you buy a property under the scheme, it must be your main place of residence.

DMS properties cannot be purchased as buy to let properties, second homes, or holiday lets.

These are the forms that you need to send us, to let us know that both buyer and seller meets the relevant legal obligations:

The main eligiblity criteria are as follows:

Affordable Housing Need

  • Your household income is not more than £80,000 per annum (for single or joint purchasers)
  • Your deposit for the property is no more than 65% of the total price in equity, savings, or a gifted deposit (unless this has been otherwise agreed by us in writing)
  • You should not have a legal interest in any other property
  • You must demonstrate that you aren't able to afford a suitable market property in the area. This is tested via the following formulas:
    • For single purchasers: (Gross annual income multiplied by four) plus deposit = Less than or equal to the full market value of an equivalent property in the area
    • For joint purchasers: (Gross annual income multiplied by 3.5) plus deposit = Less than or equal to the full market value of an equivalent property in the area

Local Connection Criteria

You will be considered eligible if you, or a member of your household, meets one of these criteria:

  • Your only or principal current home is in the districts of Babergh or Mid Suffolk
  • You have been a resident of the districts for at least two years prior to your application
  • You are permanently employed within the districts, and have been continuously for at least two years
  • You have immediate family connections (parent, adult, child, brother, sister) whose only or principal home has been in the districts for at least two years
  • You need to live within the districts because you either need, or need to provide, substantial care from or for a relative who has lived in the districts for at least the last 6 months

Buy a property

Initial sales

All new DMS properties are marketed and sold by property developers, so you will need to contact them directly.

It is likely that the properties will be advertised online, as and when they become available.

Resales

Resales are advertised via local estate agents, and other online estate agency platforms. Please contact them directly if you are interested in buying an advertised property.

Please note: Before the legal team issue the compliance certificate, the seller's solicitor should email Legal.CommercialandProperty@westsuffolk.gov.uk to enquire about the fee (+VAT) and bank details.

You can also make the enquiry by post:

West Suffolk House

Western Way

Bury St Edmunds

Suffolk

IP33 3YU

Sell a property

Step one: Get a valuation

You must provide a minimum of two valuations from estate agents.

We will also accept a valuation from the Royal Institute of Chartered Surveyors (RICS), but this option will be more expensive for you.

Step two: Apply the percentage discount

You will need to refer to the Section 106 agreement - which was created at the original point of sale - for the defined 'affordable price'. This will state the maximum percentage of market value you are able to advertise and sell your property.

DMS properties sold through this scheme (either first sale or resales) will be sold at a discount of at least 20% below the open market value agreed by us.

Step three: Marketing and sales

Once we have confirmed the valuation price, the sale process will follow the requirements of the Section 106 agreement, to make sure that the property is sold at a discount to an eligible person.

If there are no applications after eight weeks of marketing the property, then it can be marketed to anyone in need of housing who meets the financial criteria. However, all the restrictions and requirements of the Section 106 agreement will apply.

Data protection

Babergh and Mid Suffolk District Councils shall comply with all applicable data protection legislation and privacy legislation in the UK including the General Data Protection Regulation (GDPR); the Data Protection Act 2018; and all other legislation and regulatory requirements in relating to the use of Personal Data and the privacy of electronic communications.