New policy set to see 20-40% discount on house prices to help people get a foot on the property ladder in South Tyneside
A proposed interim policy on Discounted Market Sales homes will be set out before South Tyneside Council’s Cabinet in the New Year.
Discounted Market Sales (DMS) is a form of Affordable Housing where properties are sold at a discount of at least 20% below local market value.
They are aimed at people who cannot afford to buy a home on the open market but do not require social rented housing.
To date, only one site in South Tyneside, at Farding Square, Marsden, has delivered this type of home.
Hhowever, council chiefs say developers are beginning to ask for them to be included as part of their planning permission applications.
Senior councillors are being recommended to agree a proposed interim policy on the provision of these homes, which would be secured through legal clauses called section 106 agreements.
These agreements can planning permission approved subject to certain benefits to the area being provided by the applicant, such as contributions to facilities, provision of infrastructure such as roads, or affordable housing, for example.
Cllr Jim Foreman, Lead Member for Housing and Community Safety, said such a policy would bring benefits to communities in South Tyneside.
“A policy is needed to ensure consistency in approach and delivery of this tenure," he said.
“The provision of DMS homes may mean a reduction in the number of other forms of affordable homes that are provided in South Tyneside.
“However, it would enable more residents to get on the property ladder without having to move out of the borough, providing more choice in the housing market and helping to create mixed, sustainable communities.”
It is proposed that DMS homes will be sold with a discount of 30% in most areas of South Tyneside; a discount of 40% will apply in the higher value ward areas of Cleadon and East Boldon plus Whitburn and Marsden.
Applicants would be expected to demonstrate their eligibility, including household income and local connection, through an assessment.