Search for Discount Market Sale homes in London

What is Discount Market Sale and how does it work?

Is Discount Market Sale the right housing scheme for you?

Discount Market Sale is a housing scheme designed to make homeownership more accessible for middle-income Londoners. This housing scheme offers new-build homes for at least 20 per cent below local market prices.

With Discount Market Sale, buyers purchase 100 per cent of their home outright. It’s different from Shared Ownership, in that there’s no rent to pay and no need to buy additional shares later. The homes are typically modern, energy-efficient, and designed to make owning a home in London more affordable.

Buyers will usually need a mortgage and deposit. Securing a mortgage typically requires a deposit of 15 per cent of the sale price, although this can vary based on the buyer’s finances.

Buyers who purchase a flat, and, in some cases, a house, will be required to pay a monthly service charge. These monthly fees cover the maintenance of communal areas and building-related expenses, which include building insurance and things like the lifts, lighting, communal aerials, door entry systems, cleaning of common areas and grounds maintenance.

When selling a Discount Market Sale home, the owner will need to sell it to another eligible buyer based on the value of the property at the time of selling it, but with the same percentage discount they originally received.

Who is eligible for Discount Market Sale?

Discount Market Sale is designed for first time buyers and middle-income Londoners who are unable to buy a suitable home on the open market. To qualify, applicants must:

• Have a household income of £90,000 or less.
• Live or work in London, although some homes may be offered to residents of the local borough first.
• Not already own a home, although there are some circumstances in which home owners who have sold or are selling their home may be eligible.

Applicants should also meet any additional eligibility requirements set by the housing provider, developer or local authority.

Housing providers will check whether applicants are eligible for Discount Market Sale homes.

How does Discount Market Sale allocation and prioritisation work?

Housing providers will check whether applicants can afford any home they apply to buy.

Some groups may get priority for homes in the first three months for which they’re advertised:

• The Mayor also encourages boroughs and housing providers to prioritise key workers, as defined here.
• In some boroughs, people who live or work locally may have priority.

Every provider must have a clear allocation process that explains how they allocate homes and when priority rules apply.

How much does Discount Market Sale cost?

Buying through Discount Market Sale involves both upfront costs and ongoing monthly costs.

Upfront costs include:

• Deposit: Usually around 15 per cent of the discounted sale price, but this will depend on the buyer’s finances.
• Mortgage and solicitor fees: These will vary based on the lender and conveyancing solicitor. Some buyers may also choose to work with a mortgage broker.
• Stamp Duty: First time buyers currently pay no Stamp Duty on the first £300,000 of homes worth up to £500,000.
• Moving expenses: Budget around £3,000–£5,000 for moving costs.

Monthly costs include:

• Mortgage repayments: Based on the discounted purchase price, loan amount and interest rate.
• Service charges: Cover building maintenance, communal areas and grounds upkeep. The cost varies by development.

Where can you find Discount Market Sale homes?

Some Discount Market Sale homes are advertised on the new Homes for Londoners property portal, powered by Share to Buy – the country’s leading portal for affordable homeownership and buying schemes.

For homes outside London, visit the Share to Buy website.