Under one in 10 (9%) potential buyers know about an affordable housing scheme which could help them to stay in their local communities, new research has found.
Ecology Building Society is calling on the Government to do more to support and promote Discounted Market Sale (DMS) Homes to prospective buyers who could benefit, after commissioning independent research.
Access to DMS Homes is ringfenced for local residents, who can buy the homes at a discount below a property’s market value, offering significant savings in areas where property prices are high.
The independent research by YouGov with potential buyers aged 28 to 43 years old, found that 82% of respondents said it was important to live in their local or surrounding area.
72% thought house prices generally were a barrier to purchasing a property and 44% of people said there was a lack of affordable properties in their local area, while 46% said there was a lack of affordable properties more generally.
DMS accounts for a smaller share of the affordable housing market than shared ownership and is offered through government schemes like First Homes, local authority projects subject to section 106 agreements (or rural housing burden in Scotland), or community-led schemes by groups such as Community Land Trusts. Prices are discounted in perpetuity to provide a stepping stone onto the housing ladder.
Daniel Capstick, Ecology’s senior mortgages product and proposition manager, commented: “DMS can help thousands of people each year to stay in their local communities but we were dismayed only 9%, fewer than one in 10 of those surveyed by YouGov, had even heard of it.
“In Scotland and Yorkshire, awareness was even lower – only 5%, or one in 20 people surveyed – had heard of DMS, even though these are regions where many buyers may struggle to afford homes in their local communities. It’s unsurprising that awareness was higher in London, where affordability is most challenging, but even then only 14% - about one in seven people - had heard of DMS.
“Once DMS was explained to the survey participants, 59% expressed an interest in the scheme and said it could help them to buy their first home.
“This shows a clear need for the Government to do more to better publicise DMS, which can help thousands of individuals, couples and families each year to buy homes and stay in their local communities.
“DMS enables those communities to remain sustainable and thrive, rather than forcing people to move away from family and friends because they can’t afford to buy where they grew up. We’ll be sharing our YouGov research with the Ministry of Housing, Communities and Local Government.”
