The government estimates that around 50,000 people will be able to benefit from a plan to publicly guarantee 20% of housing purchases for young people and families with children announced by President Pedro Sánchez this Sunday. “We have made an approximate calculation”, explained this Monday the Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez, at the end of a meeting that the executive has organized with representatives of the housing sector. “At first count we benefit 50,000 people”, said the minister profusely, who nevertheless added that the guarantee could reach more families “if they meet the requirements”.
According to government sources, the conditions are being finalized now. They will be known as the total amount of the guarantee, when the Council of Ministers agrees on Tuesday with the possibility that Transport and ICO sign an agreement to open the line of guarantees. “The details of this measure will be revealed tomorrow (por este martes)”, Minister Sánchez insisted before being asked repeatedly about the details of the agreement.
In the announcement made by the President during a rally in Santa Cruz de Tenerife this Sunday, it was reported that the measure would be aimed at home buyers up to 35 years old or who have minors. The economic requirement laid down was that the recipients of the guarantee did not exceed an income of 37,800 euros per year. In other words, 4.5 times the IPREM (multiple effect public income indicator), which in theory would be individually priced, for cases in which a couple requests a mortgage. And the public-guarantee portion would reach “up to 20%,” which mortgages don’t normally cover, as banks have a general limit of 80% of the home’s value.
But there will be other conditions, which are those that are being finalized and those that can be “adapted” by the states according to the same sources of the executive. In particular, this will be done with the maximum amount of house, due to the great differences that exist between some autonomous communities and others, or even between cities within the same community. Since the public guarantee can only be requested for homes up to a certain value (in contrast to some PP communities where similar measures are already in place), the government considers it logical that this limit be flexible and Adapt to the prices of each real estate market.
What will not change, in principle, are the income requirements and household characteristics that applicants must have. These will be the same for the whole of Spain. It is all expected to be tense at the cost of outlining the measure in the Council of Ministers, following harsh criticism of United We Can for this aid. Wants to downplay criticisms of the transport minister, assuring that “it is a good measure that cannot be read or understood in isolation from the rest.”
The PSOE proposes a measure to finance the entry of mortgages that Botin and PP have already made, and which has failed in the United Kingdom. Unless it depends on Podemos, the PSOE housing proposals are contrary to the common interest. All housing laws should be implemented.
—ione bellara (@ionebelarra) May 8, 2023
His presence served to review the five axes in the housing policies, which are the ones the government presented in its meeting with the association of builders, unions, professional associations, representatives of the third sector and employers of some public companies . In addition to the Minister of Transport, the President of the Government, the First Vice President, Nadia Calvino, and the Minister of Defense, Margarita Robles attended the meeting.
The executive has defended the budgetary increases it has made in this legislature to housing policies (much of it financed by European funds), future housing legislation that is nearing the end of its parliamentary process, promoting housing rehabilitation and, crucially, The commitment to expand social and affordable rental parks, in addition to the line of public guarantees to buy a home, has become the latest attractive announcement on housing ahead of the next 28 May local and regional elections.
Raquel Sánchez has made sure that all these proposals have been “excellently received” by the representatives of the housing sector who have attended. And she defended the government’s “constant dialogue” during the drafting of the housing law, when asked why there were no representatives of large rental housing owners or tenant unions at the meeting.
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