Last Friday, on March 9th the new «Plan Estatal de Vivienda 2018-2021» was approved in Spain, which was published just a day after the BOE (State Official Newsletter), through the «Real Decreto 106/2018», came into force retroactively -since January 1st of this year- and like we are accustomed, the definitive text is far from the drafts that they published until now.
So, because of the previous experiences, I kept myself from writing this article, until we have the definitive text, although the clients were asking for information since the Plan was announced a couple of months ago, the essence of it, I want to summarize the following lines, with the purpose that this text works as a guide at the time to interpret these subsidies, as I already said, they did not do what they promised they would.
Mainly they are including contribution for renting, support for reconstructing houses, and in the last place -although it should not be like that-, to the acquisition of houses. As I said, it should not be like that, because it is just in this point, where we have the lack of support, and the youngsters have a higher barrier for accessing their first home. Those youngsters under 35, for whom has been approved subsidies up to 10.800 € for buying a house, but only in villages with less than 5.000 inhabitants, and only for acquiring properties of less than 100.000 € -not including taxes nor other expenses linked to houses acquisition-.
However, the “star” measure is the support for renting, in which they are subsiding up to 40% of the monthly rent, with a maximum of 600 €. Having this percentage up to 50% for people under 35, elderly people over 65, families that are homeless, numerous families, and others with a disability or dependent members. This limit could be up to 900 € in some regions, and in cities where the rents have shot to the roof in the last months as it is the case in Madrid and Barcelona.
The other chapter of measures is the one focused on promotion and reconstruction of buildings for social renting or rehabilitation projects. In which they are contributing up to 36.500 € for the adaptation, when the goal of those houses is social renting. In addition, there is another line for improving the accessibility of buildings, like removing architectonic barriers and adding ramps, handrail or elevators, e.g.
As a summary, here I will list 10 main measures that are approved, where it is detailed who can apply for them, the necessary requirements for accessing them and the percentages or limits that they have:
- People under 35 with lower incomes than IPREM (Identificador Público de Renta de usos Múltiples) -set this year an amount of 537,84 €/month or 7.519,59 €/year in 14 wages-, that can access up to 10.800 euros for buying their first house.
- Individuals between 35 and 65 who has a family with three times lower incomes than IPREM, also they can access to these subsidies.
- Renting contribution for youngsters under 35, with up to 40% of the monthly rent, if it is between 600 and 900 €, depending on the region.
- Elderly over 65 or homeless, they can receive up to 50% of the monthly rent of a flat.
- Families whose members are someone with a disability.
- Properties that are foreclosed from the banks or other owners, they must admit to the regions government they are renting to families who are homeless.
- Constructors and Real Estate businesses, that can get subsidies for their constructing and building rehabilitation projects.
- Different measures with contributions up to 40% for rehabilitation projects both for buildings and individual houses, placed in urban and rural environments.
- Measures focused on avoiding the demographic challenge, supporting to buy houses in villages with population under 5.000.
- Priority contributions for women who have suffered gender-based violence.
Therefore, to all who do not see their profile included in the previous list, are not eligible, you will keep throwing numbers and waiting still, and see if with the expected execution results of this plan -that unfortunately is very flattering-; for the next plan, they will take into consideration other types of requirements, that fits better the real needs of different elements that are in the Spanish Real Estate market; and this time, they will benefit to this very important industry for our country´s economy.
I am available for anyone who needs advising or any interpretation of this Real Decreto– so you can click here-, both through the same comments of this article, and the contact form of the blog.