Affordable housing - discount market sale scheme customer information guide
Background
Discount Market Sale housing is a type of affordable housing which is sold at a discount of at least 20% below local market value. A similar product called "First Homes" offers a minimum of 30% discount below market value for properties purchased in Stockton-on-Tees. Purchasing a Discount Market Sale home can be done either directly from the House Builder, through a Registered Provider (sometimes referred to as Housing Associations), or through the re-sale of an existing Discount Market Sale property through an Estate Agent. Discount Market Sale properties available for purchase are usually advertised through on-site sales offices, marketing boards on site, through the websites of House Builders, Registered Providers and Estate Agents.
Purchasers own 100% of the property but pay a discounted price on purchase. The owner of a Discount Market Sale dwelling has the same responsibilities as any other property owner, including responsibility for all repairs and maintenance costs. Any purchaser of a Discount Market Sale Scheme dwelling is subject to specific legal requirements which ensure their home is discounted in perpetuity and therefore each subsequent resale is subject to the same percentage discount. Please see the example in Housing market fluctuations .
The discount at time of re-sale is based on a revised and updated valuation which needs to be submitted for approval to strategichousing@stockton.gov.uk prior to any forward sale being agreed which will set the maximum resale value under the terms of the scheme. Any prospective new purchaser within the 12 week notice period also needs to meet the eligibility criteria as outlined in this Customer Guide. The 12 week notice period commences at the point when Strategic Housing have confirmed the maximum resale price. Properties under the Discount Market Sale scheme or First Homes should not be advertised for sale until the maximum sale price has been agreed by the Strategic Housing Team.
To request a PDF copy of the guide please email strategichousing@stockton.gov.uk.
