An introduction to Discount Market Sale
What is the Discount Market Sale scheme?
Discount Market Sale: Overview
Discount Market Sale – also known as Council Shared Equity or a reduced market value scheme – is a low cost homeownership product where a new build property is purchased at a discounted price. This discount is usually around 20%, with the scheme aiming to help low and middle earners who live or work in the borough to get onto the property ladder.
As the property is discounted, housing costs are reduced significantly. Applicants will need a 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 held by the council.
An applicant may buy a new build property on certain developments for a percentage of its current value, provided that when they come to sell it, they only receive the same percentage of its current value back, enabling the home to remain affordable to a resale purchaser. You may be able to staircase (buy the remaining shares) from the council, but it is at their discretion and you will have to do it in one go.
Discount Market Sale: Eligibility
To be eligible for Discount Market Sale, you must meet certain criteria:
- You need to live or work in the borough of the development, sometimes for a certain number of years.
- At the time of application, your household income must not exceed 45% of the Discount Market Sale price of the property.
- You must not already own another home.
To find out more about other home-buying and rental options, visit our article index, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!