Ecology Building Society has called on the Government to do more to promote Discounted Market Sale (DMS) Homes, after research revealed that only one in 10 potential buyers have heard of the affordable housing scheme designed to help people stay in their local communities.
Independent research conducted by YouGov for Ecology found that just 9% of respondents aged 28 to 43 were aware of DMS Homes, despite the scheme offering properties at a discount below market value.
The homes are reserved for local residents, providing a vital route onto the housing ladder in areas where prices are otherwise out of reach.
The survey also highlighted the barriers many face when trying to buy a home.
Among respondents, 82% said it was important to live in their local area, while 72% cited high property prices as a major obstacle.
Nearly half said there was a lack of affordable housing both locally (44%) and more generally (46%).
Daniel Capstick, Ecology Building Society’s senior mortgages product and proposition manager, said: “We commissioned the research after launching our Affordable Local Homes mortgage, which was designed specifically for DMS Homes.
“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.”
He added: “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 Homes, which account for a small share of the affordable housing market compared to Shared Ownership, are offered through government-backed schemes such as First Homes, local authority projects, or community-led developments. Discounts are retained in perpetuity, ensuring long-term affordability for future buyers.
However, Capstick warned that many affordable housing buyers struggle to secure mortgages due to restrictions placed on DMS properties, which can deter mainstream lenders.
Ecology Building Society remains one of the few mortgage providers willing to lend on such homes.
He continued: “Most lenders are unwilling to offer home loans on properties with residence restrictions so this lack of mortgage choice risks locking first time buyers out of housing schemes created to help them.
“That’s particularly true of schemes aimed at enabling purchasers to stay in their local area, which is why we launched our Affordable Local Homes mortgage.”
