Discounted Market Sale
Discounted Market Sale Policy
Our Discounted Market Sale (DMS) Policy helps residents who need affordable housing to achieve their home ownership goals. DMS offers the opportunity to purchase a property that would otherwise be unaffordable to the market.
A DMS property is a form of affordable housing, which is sold at a discount of at least 20% below open market values. The owner will own 100% of the property, but they must pass on the discount to future buyers. This will also apply where the interests in a property are transfers of equity.
No landlord or registered provider has an interest in the property. The owner will be responsible for all repair and maintenance costs.
Where DMS properties are secured, they will be restricted by planning obligation to make sure that a discount of at least 20% is applicable every time the property is sold or transferred to an eligible buyer. This is via a restriction on the title, which will apply for any sale, transfer of equity, re-mortgage, or any other form of disposal.
The process for purchasing a DMS property will normally be set out in a related Section 106 Agreement, as per the Town and Country Planning Act 1990. This will also include any deed of variation or supplemental deed, which is needed in connection with the planning permission.
A DMS property should be the owner's main residence, who has no other legal interests in any other property.
We require that DMS properties are only sold to eligible persons/households who:
- are over 18 years old
- have a household income of less than £80,000 per annum for a single or joint purchaser
- are purchasing the home to live in as their sole main residence (and own no other property, within the UK or abroad, unless that property is being sold to allow purchase of the Discounted Market Sale property)
- in some cases, existing homeowners will be considered if they are in housing need. For example, where relationship breakdown forces the sale of a property, and the person cannot afford to buy one on the open market
- do not have an interest legally or equitably in other properties (within the UK or abroad)
- are unable to afford to buy a home on the open market suitable for their needs in the local area
- can demonstrate a good credit history and be able to afford regular payments and costs involved in buying the Discounted Market Sale property
Local Connection policy
A local connection policy may be applied to the properties at our discretion.
A local connection can mean someone:
- currently lives and has lived in the Parish continuously for two (2) years
- has a member of their household who has a parent, adult child, brother or sister whose only or principal home is in the Parish and has been for at least two (2) years
- is employed in the West Northants area and has been continuously for at least six (6) months
- requires substantial care from a relative who has lived in the West Northants area for at least six (6) months, or needs to provide substantial care to a relative who has lived in the West Northants area for at least six (6) months
Our Housing Allocation Policy gives a detailed requirement of Local Connection.
Buying a DMS Property
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 as and when they become available. This is usually via the developer's website, as well as other marketing platforms.
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.
Selling a DMS Property
The developer/owner will notify us at [email protected] of their intention to sell a property at Discounted Market Sale. We will verify the property can be sold as DMS in accordance with the relevant S106.
With initial sales, the developer/owner will provide us with 2 independent valuations of the DMS property. The property will have been valued by local independent valuers who have Royal Institute of Chartered Surveyors qualifications.
The valuation reports provided will be valid for 3 months from the date the report was published. If a DMS property has not sold and the 3 months has expired, the developer/owner shall seek updated valuations.
We will calculate an average of the 2 valuations which will be the sale price of the DMS property. We will notify the developer/owner of the final discounted value by way of letter confirmation within 10 working days of receiving the valuations.
With re-sales, the developer/owner will provide us with one independent valuation of the DMS property. This will be valued by a local independent valuer who have Royal Institute of Chartered Surveyors qualifications.
When we confirm that we accept the valuation, we will then agree with the owner/developer a marketing ‘release date’ for the property.
The publicity must state that:
- the property is an affordable property
- the property is subject to a Section 106 Agreement
- buyers must be approved by West Northamptonshire Council
If there are no applicants after 3 months of marketing a DMS property, then the property can be marketed to anyone in need of housing who meets the financial criteria. All the restrictions and requirements of the 106 will still apply.
If a DMS property has not sold within 6 months of marketing, then it may be sold at full market value. The seller must then pay the value of the discount to us.
We will issue the developer/owner with Form 1 – DMS Property Sale Agreed. This should be completed and returned to us via the developer/owner’s solicitor.
Form 1 notifies us that a sale has been agreed to client/s and that the process of the sale adheres to the S106, marketing and eligibility criteria.
These arrangements are subject to the provisions of the relevant Section 106 Agreement. Where a Section 106 Agreement contains different requirements, restrictions, or cascade mechanisms, the terms of the Agreement will take precedence. The Council's policy cannot override legally binding obligations contained within a Section 106 Agreement.
Once we are satisfied that the DMS property is in the process of being sold, Forms 2A and 2B will be issued to the developer/owner. The form should be completed and returned to us via the developer/owner’s solicitor.
Forms 2A and 2B confirm the eligibility of the client/s for the DMS property.
We will review the eligibility of the client/s and the evidence submitted on Forms 2A and 2B. We will then confirm that the client/s have (or have not) satisfied the eligibility criteria for the DMS property within ten 10 working days.
Once the client/s have been confirmed as eligible for the DMS property, the sale of the property can be completed.
Form 3 – DMS Certification of Purchase can then be issued.
Our DMS forms
- Form 1 - DMS Property Sale Agreed
- Form 2A - DMS Declaration of Eligibility (Financial Advisor)
- Form 2B - DMS Declaration of Eligibility (Conveyancer)
- Form 3 - DMS Certification of Purchase
Our DMS forms are not accessible via this webpage. They will be sent to the developer/owner at request during the DMS sale process.
Administration Charge
For each DMS plot, the Council has implemented an administration charge to the seller of £210. This is to cover officer time of processing each DMS plot and has been calculated on a full cost recovery basis. The charge amount will be reviewed on a regular basis.
Please see our fees and charges webpage for more information.
Contact us
To contact us about Discounted Market Sale queries, please email [email protected].
Last updated 18 August 2026