Affordable housing - discount market sale scheme customer information guide

Discount Market Sale properties represent a developers' contribution to affordable housing through a planning obligation. This is controlled through a Section 106 agreement (s106 of the Town and Country Planning Act, 1990) which is a legal agreement signed as part of a planning permission and places particular conditions on the property or the land. The Section 106 agreement is binding in perpetuity upon the owner of any Discount Market Sale property, and upon any other party with an interest in the land such as a mortgagee. 

A Section 106 is registered as a local land charge. This means that when a proposed purchaser undertakes a local search on the property the purchaser will become aware of the agreement.  

It is recommended that you read the Section 106 agreement for the site you are wanting to purchase on, or which is related to a re-sale, so you are aware of the eligibility criteria that must be followed and the discount value which should be applied. The discount is generally 20% but it can vary.   

A Discount Market Sale home can also be protected by a restriction on the land registry property title.  

There may also be occasions where Discount Market Sale homes are controlled through planning condition and affordable housing statements produced by House Builders which are agreed with Stockton-on-Tees Borough Council. They can set out specific details including eligibility criteria and discounts applied.