Through the Northstowe DMS Homes scheme, homes are to be sold with a minimum discount of 20% of the Open Market Value (OMV), meaning purchasers will pay a maximum of 80% of the asking price. For example, a home with a value of £300,000 would be available for £240,000.

The homes are also subject to a price cap. This cap was set at £250,000 in 2017 but it rises over time in line with the BCIS All Tender Index. As of December 2023, the price cap stands at £309,904.

To qualify for the scheme, at least one of the purchasers must be a first-time buyer; have a total household income of no more than £100,000 and the home must be their only or main residence.

In addition to the advantage of a significant discount, the purchaser will own their property in full, there is no shared equity arrangement with an affordable housing provider, and there will be no rent or interest payable on the discount share in the property. However, there are some restrictions to help ensure that Northstowe DMS Homes benefit the buyers for which they are designed.

The Northstowe DMS properties must be purchased and lived in by qualifying first-time buyers for at least five years. The original purchaser can sell the home within this period if they wish, but they will need to do so to another qualifying first-time buyer (or to SCDC), with the same percentage discount applied. Any subsequent buyer who purchases the property within the first five years will be subject to the restrictions on sale until five years after the original sale.

Beyond the first five years, the homes can be sold for the full open market value without the first-time buyer restriction. Upon sale, the owner will receive the percentage share they originally acquired (e.g. 80%), plus any value increase on that share, with the discount share (e.g. 20%) being payable to SCDC. This is known as the Value Balance Payment. Payments to SCDC under this system will be used to further support affordable housing in the area.

Example

A first-time buyer finds a DMS property in Northstowe with an asking price of £200,000. They buy and own the property through the Northstowe DMS process but pay just 80% of the value (or £160,000).

For the first five years, the owner can only sell to another first-time buyer through the Northstowe DMS method.

After this, the home can be sold for the open market value. The sale will see each party retain its equity share and any increase in the value of the property divided between the two parties, based on their percentage ownership.

Homes England will be working with a range of development partners to deliver the Northstowe DMS Homes. The first properties available will be 120 homes at Stirling Fields, which is being delivered by Keepmoat Homes.

To view properties for sale at Stirling Fields in Northstowe, please visit Keepmoat Homes' website and contact the sales team directly about the process.

Yes. If the property is sold within the first five years, SCDC has the opportunity to buy the home at the discounted price – as it effectively owns a percentage for this period. If after five years the residence is being disposed of, the seller must first give SCDC the opportunity to buy it at open market value less the discount allowed on the original sale.

For example, if the value at the date of disposal was £375,000 and the discount applicable on the original disposal was 23%, SCDC would pay the owner £288,750 (£375,000 - £86,250).

If SCDC does not buy the DMS home, it can be sold on the open market. Sellers are not restricted to first-time buyers, but on sale, the seller must pay a value balance payment from the sale proceeds to SCDC. This is calculated by applying the discount allowed on the original disposal of the DMS to the OMV at the date of sale (“the Value Balance”). For example, if the discount allowed on the original disposal of the DMS was 23% and the OMV when sold after six years is £375,000, the Value Balance payable will be £86,250.

The obligations to pay the Value Balance to SCDC will apply to any disposal of the DMS after the first five years (or more) from the date of the original sale of the DMS home, whether the buyer is selling the DMS home on the open market or disposing of it as a gift or at less than market value.

After the first five years, the buyer may (but is not obliged to) pay the Value Balance to SCDC and thereafter may sell on the open market and retain all the proceeds of any future sale.

Value Balance payment to SCDC, either following sale or occupier buy-out, is to be retained and reinvested in the provision of Affordable Homes in South Cambridgeshire. Once the Value Balance is paid (whether voluntarily or on sale or other disposal), future buyers will not be subject to the restrictions on sale. No rent is payable on the SCDC Share. Unlike certain ‘Shared Ownership’ products, no rent is payable at any time. The buyer will acquire 100% of the DMS home, subject to the obligation to pay the Value Balance to SCDC on disposal.

DMS homes cannot be sub-let and must be occupied as the buyer’s only or principal residence. They cannot be used as an investment property. On production of a declaration of compliance, the restriction on sales applicable for the first five years will be removed.