Westmorland and Furness Council is proposing to extend discounted-sale housing to Barrow as part of a new policy being considered by Cabinet.
The arrangement would allow qualifying properties to be sold at a substantially reduced price to buyers who meet requirements including housing need and a local connection.
While discounted-sale housing schemes have previously operated in the former Eden and South Lakeland council areas, the Cabinet papers say there is currently no equivalent scheme in Barrow.
That is now set to change as the council looks to establish a consistent policy across Westmorland and Furness.
Under the proposals, the discount applied in Barrow would be set at 30 per cent of open-market value.
Housing market changing in Barrow
The move comes as the council says Barrow’s housing market is changing significantly.
The Cabinet papers describe Barrow as an “emerging market”, highlighting the prospect of several thousand additional jobs at BAE Systems and growing interest from housing developers.
Those changes have increased the importance of considering how discounted-sale housing should operate in the town.
The new approach would mean qualifying homes could be purchased for 70 per cent of their unrestricted market value.
For example, a property valued at £200,000 would have a discounted value of £140,000 under a 30 per cent reduction.
However, the lower prices would not mean the properties were available to anyone wanting to buy a cheaper home.
Applicants would still have to meet eligibility conditions attached to individual developments through their Section 106 planning agreements.
Those could include demonstrating a housing need and satisfying local-connection requirements.
How discounted-sale housing works
Discounted-sale housing is designed to make home ownership more affordable by permanently linking a property’s sale price to a percentage of its open-market value.
Unlike a one-off developer incentive, the discount is generally retained when the property is subsequently sold.
That is intended to ensure the home remains available at a below-market price for future eligible buyers rather than giving the first owner the entire benefit of the discount.
The council’s policy would provide a single system for administering the homes across Westmorland and Furness, including applications, eligibility checks and resales.
The authority says differences between the policies inherited from the former councils have previously resulted in applicants being treated differently depending on where they live.
The proposed policy aims to provide a consistent approach while retaining different discount levels where local housing markets require them.
Barrow scheme
The introduction of the scheme in Barrow is particularly significant because discounted-sale properties have not previously formed part of the former Barrow Borough Council’s affordable housing provision.
The Cabinet papers say the new policy creates an opportunity for discounted-sale homes to be secured through new Section 106 agreements in the Barrow area.
The proposed 30 per cent discount reflects the area’s housing market while seeking to keep properties affordable for local buyers.
It comes amid a much wider period of growth and investment in Barrow, much of it linked to the expansion of BAE Systems’ submarine operations and the town’s defence industry.
Cabinet members will be asked to approve the new discounted-sale housing policy when they meet on Tuesday, November 10.
If approved, the change would create a framework for discounted-sale homes to be provided in Barrow as suitable developments come forward.
