Affordable home ownership

Discount Market Homes are homes that are sold in their entirety to the buyer, but with a discount. As the property is discounted, housing costs are reduced significantly. Applicants will need a discount market sale mortgage and/or savings to cover the discounted price of the property, and monthly outgoings will comprise of a mortgage payment and service charge. Unlike Shared Ownership, there is no rent to pay on the remaining interest.

The buyer must meet the criteria set out in the legal agreement tied to the property (also known as a Section 106 agreement).

The majority of discount market homes have a discount of 20% of its true market value, however the discount can vary by site. This discount remains with the homes forever, meaning that if you own a discount market home and decide to sell it then you will have to sell it at 80% of its true market value to an eligible person.

Am I eligible for a discount market home?

To be eligible for a discount market home the applicant/s must meet the local connection and financial criteria set out in the s106 agreement – both criteria must be evidenced.

For example a s106 may stipulate that the applicant must be unable to afford open market housing based on their earned income, and the available income of any person living with them which would be reasonable to take into account and assuming a mortgage of not more than 3 times their earned income.

If the homes full market value is £150,000, and the discount market home has a 20% discount, meaning the home is sold for £120,000. An applicant/s who pays a 5% deposit of £6,000 can earn up to £38,000 per annum.

The Council undertakes eligibility checks for applicants of affordable homes. Applicants will need to send proof of their address (such as a utility bill or driving licence) along with a payslip (dated within the last 3months) and evidence of any other capital. The Affordable Housing Delivery Officer will then confirm via email if you are eligible for the Discount Market Home you have identified within 15 working days.

Check your eligibility here

Can I sublet the property?

No. You are required to use the property as your only or principal residence. However, you are able to let out a spare room under the GOV.UK - rent out a room scheme subject to the consent of your mortgage provider.

What happens if I want to sell the property?

There is no restriction on how long you must live in the discounted property before you can sell it however, the discount will remain with the property throughout all subsequent sales.

If you want to sell the property, you would need to sell at a discounted price to a person who fits the eligibility criteria.

You must inform the council before putting the property up for sale and when you have a buyer in place.

Can I part exchange?

No. Whoever buys the property must live in the property as their only or principal home, so the property cannot be sold on a part exchanged basis.

How do I find a discounted property?

New build discounted homes are sold and advertised directly through the developer.

Please view the below list of the current new build developments in Wyre offering the scheme: