Discount Market Sale scheme

A purchaser (or joint purchasers) should be at least 18 years old, and have a right of residence in the UK.

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

Eligibility checks will be carried out either by the developer (for initial sales), or - for resales - by the buyer's solicitor, or as agreed by the Council in writing.

Then - in either circumstance - confirmation that the buyer meets the Section 106 criteria should be sent to us via the relevant certificate:

• Certificate for a buyer of a Discount Market Sale property
• Certificate for a seller of a Discount Market Sale property

The main eligibility criteria are as follows:

Affordable Housing Need

• Household income does not exceed eighty thousand pounds (£80,000) per annum for single or joint purchasers
• The deposit for the DMS home is no more than 65% of the DMS price in equity, savings or a gifted deposit (unless otherwise agreed in writing with us)
• A purchaser should not have an interest legally or equitably in other property, including via trust (UK or abroad)
• Purchaser(s) must demonstrate that they are unable to afford a suitable market property in the area. This is tested by 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

A person would be considered eligible if they or a member of their household, meet one of these criteria:

• Currently has their only or principal home in the district of Babergh or Mid Suffolk
• Has been a resident within the district of Babergh or Mid Suffolk prior to the application for at least two (2) years
• Has been employed permanently in the district of Babergh or Mid Suffolk and has done so for a continuous period of at least two (2) years
• A person has immediate family connections (parent, adult child, brother or sister) whose only or principal home has been in district of Babergh or Mid Suffolk District Councils and has been for at least two (2) years
• Needs to live in the district of Babergh or Mid Suffolk because they require substantial care from the relative who has lived in the district of Babergh or Mid Suffolk for at least the last six (6) months, or they need to provide substantial care to a relative who has lived in the district of Babergh or Mid Suffolk for at least the last six (6) months

The developer or seller’s solicitors can download the DMS eligibility criteria application form to carry out the necessary checks.

Initial sales

All new DMS properties will be marketed and sold via the property developer - prospective buyers should contact them directly.

It is likely that the properties will be advertised online (via the developer's website, as well as other marketing platforms), as and when they become available.

Resales

Resales will be advertised via local estate agents, and other online estate agency platforms. Please contact the agents directly if you are interested in purchasing an advertised property.

Please note: Before the legal team issue the compliance certificate, the seller's solicitor should email legal.services@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

Step 1: Obtaining a valuation

• The seller must provide a minimum of two (2) valuations from estate agents in determining the accurate open market valuation of the property. We would also accept the valuation from the Royal Institute of Chartered Surveyors (RICS) but opting for the RICS valuation would result in additional costs to the seller of the property.

Step 2: Applying the Percentage Discount

• As Section 106s will differ, it will always be necessary to refer to the Section 106 Agreement for the defined “affordable price”, this states 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 the Council.

Step 3: Marketing and Sales

• Once the Council confirms the valuation price, the sale process will follow the requirements of the s106 to ensure the DMS property is sold to an eligible person at a discount.
• If there are no applicants after eight (8) weeks of marketing the DMS property, then the property can be marketed to anyone in housing need meeting the financial criteria. But all the restrictions and requirements of the s106 will still apply (cascading of the property explained in the questions that may rise).

Unable to sell after eight weeks

We can 'cascade' the property by imposing a temporary relaxation of the Local Connection Criteria.

Renting out the property (after six months)

Owners of the DMS property must not allow any other person to live in the property, unless they form a part of the household.

Renting is allowed for maximum of two years on the premise that all the following criteria is met:

• There is a genuine need to move
• The property has been on the market for at least six months
• Rent should be equivalent to 80% of the market rental property (affordable housing price threshold)
• Owners are aware of the impact on the mortgage payments and insurance cover

After renting out for two years, the property must then be listed for sale for a further six months before applying to the Council for permission to resume letting.

If you are struggling to sell your DMS property, please contact our Strategic Housing team and we will try our best to help you.

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.