Discounted Market Sale homes could help unblock stalled housing sites and widen the route from renting into ownership, with Savills estimating that up to 530,000 privately renting families could afford a new three-bedroom DMS home at a 30% discount.
The property adviser says the model could give developers a practical alternative where Section 106 affordable homes are being delayed because housing association buyers are stepping back.
That matters to landlords because every stalled site feeds the wider supply shortage that keeps pressure on rents, while every ownership route that starts working again can ease at least some demand further down the line. The point is not that DMS will transform the market overnight, but that a blocked development pipeline helps nobody in the private rented sector.
DMS model could restart delayed affordable housing delivery
Savills’ new Discounted Market Sale report said Home Builders Federation research had already identified 8,500 consented affordable homes without a housing association buyer in late 2025, alongside more than 700 delayed or stalled sites over the previous three years. Because DMS homes do not require a registered provider to buy the affordable tranche, Savills argues that they could help some schemes move again without fresh public subsidy.
The firm said 34% of privately renting families with children could afford a new three-bedroom DMS property with a 30% discount and a 5% deposit. At a 20% discount, the figure falls to 350,000 families. It also argues that outdated income caps are now blocking access in parts of London and the South East where the model should be doing more work.
Chris Buckle, director of residential research at Savills, said embedding Discounted Market Sale homes within Section 106 agreements could help restart stalled housebuilding while still delivering lasting affordability for local communities.
This follows Residential Landlord’s analysis of London’s persistent affordable housing shortfall and earlier reporting on the strain showing up in the wider housing pipeline. The latest Savills work adds a more practical question: if registered providers cannot take the stock, what tenure mix will actually keep schemes moving?
Why landlords should watch the delivery mechanism, not just the headline total
Private landlords have an interest in housing supply arguments even when they are aimed at owner-occupiers. Delayed developments keep would-be buyers in the rental market for longer, particularly families who might otherwise move into lower-cost ownership if the product and deposit hurdle were realistic.
There is also a caution here. DMS may help transactions on the affordable side of a scheme, but it does not remove the deeper viability pressures around planning, labour, infrastructure and finance. Landlords should read it as one potential release valve, not a full answer to the supply crunch.
Still, a model that can move blocked sites and give renting households a cleaner ownership route is worth watching. If it scales, some pressure may come out of the family rental segment that has remained persistently tight.
Opinion
Housing policy keeps announcing ambitious totals while too many sites stay stuck in the mechanics of delivery. If DMS can genuinely get homes built and sold where other routes are failing, ministers should pay attention. Landlords need more supply in the system even when it does not arrive in the tenure they own.
