Housing Policy to Help People on the the Property Ladder

Posted by: Caroline Smith on 22 December 2022 16:00

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 can't afford to buy a home on the open market but don't require social rented housing.

To date, only one site in the Borough, at Farding Square, Marsden, has delivered this type of home, however, developers are beginning to ask for their inclusion as part of their planning permission applications.

The adoption of a proposed interim policy on the provision of these homes, which is secured through section 106 agreements, is being recommended to Cabinet.

Cllr Jim Foreman, Lead Member for Housing and Community Safety, said: "A policy is needed to ensure consistency in approach and delivery of this tenure.

"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.

Last modified: 22 December 2022 16:16