Discounted sale affordable homes – what are they?
Discount Open Market Value (DOMV) homes and First Homes are both forms of affordable home ownership sold at a price discounted to market value to eligible buyers.
The percentage discount and purchase criteria and process are likely to be set out in the Section 106 agreement for each development. Where a S106 includes information relating to a form of discounted sale affordable home ownership (such as DOMV homes or First Homes) it will be applied along with the approach outlined in this Policy.
First Homes are sold at a minimum of 30% discount to market value to eligible buyers. The discount applies in perpetuity and passes on to the next buyer each time the home is sold.
The first sale of a First Homes property must be at a price of £250,000 or below, after the discount has been applied. This price limit does not apply to future subsequent sales.
National eligibility criteria for First Homes is set out in government guidance and allows local criteria to be set.
Properties bought under the DOMV or First Homes scheme must be the only property owned by the purchaser and must be occupied by them as their only or principal home. Unless stated otherwise in the S106 a discount sale affordable property cannot be used as a “buy to let”, second home or holiday let. First Homes can be rented out in certain limited circumstances (see section 5). Restrictions on the use and future resale ofdiscounted sale affordable homes will be registered on the title of the property in the conveyance.