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Help for young people to buy house excludes cities of more than 5,000 inhabitants

The government will approve this Friday the new state housing Plan with aid of up to 10,800 euros to the acquisition

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Help for young people to buy house excludes cities of more than 5,000 inhabitants

The purchase aid returns to state housing Plan, which provoked criticism of parliamentary opposition when first draft was known. This has made aid less impact by inclusion of new requirements: it will only reach municipalities with less than 5,000 inhabitants and price of property will not exceed 100,000 euros. Of se, a maximum of 20% will be financed (with limit of 10,800 euros). In addition, beneficiaries must have an annual income of less than 22,365.42 euros. That is to say, three times public indicator of income of multiple effects (IPREM).

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The aid will not have an impact as expected when young people living in large cities are not able to benefit. "It's an original measure but it will have little impact. It will concentrate mainly on areas of influence of Madrid, Barcelona and Valencia, among ors, "explains Fernando Encinar, head of idealistic studies.

In Spain re are 6,353 municipalities that meet requirements, as quantified by Ministry of Development. In se localities only 8.71% of young people live (821,974 of 9,450,000), according to ir calculations. The majority is located in Aragón, Castilla y León, Castilla-La Mancha, Extremadura, La Rioja and Navarra, although latter does not participate in state housing plans. "The ory is to help se communities, but in practice it will not," Encinar insists.

Of 52 provinces that Spain has, only 14 have more than 200 municipalities that meet requirements, according to data of 2017 of INE ( last published). That is, weight of this aid must fall in se areas, all inside. However, if housing sales data are taken, none of m are among 10 provinces with greatest number of operations in 2017. "There is little offer in se places. However, it is a mistake to use housing policies for or objectives such as restocking, "says José García Montalvo, professor of economics at Pompeu Fabra University. A ory that ministry has followed in part, since it has abolished aid for maintenance, community and service supplies for people over 65 years of age.

A plan for one in ten young people 6,353 municipalities. These are municipalities in Spain that meet requirement to have less than 5,000 inhabitants. almost 9% of young people. Only 821,974 children under age of 35 live in municipalities of less than 5,000 people. This represents 8.71% of those who live in Spain. Thus, aid would only reach one in ten young people. 14 provinces. Only 14 provinces of 52 in Spain have more than 200 locations with se requirements. These groups include more than half of municipalities that can benefit from help. Madrid and Barcelona. Madrid and Barcelona are provinces that more sales registered in 2017, according to INE. However, se only provide 99 and 181 cities respectively with less than 5,000 inhabitants last year, according to statistical Center. co-financing. The Autonomous communities will be obliged to contribute a part of aid. Until now, this amount was optional and in last four years re have been up to four autonomy that have not contributed at any time: Baleares, Madrid and Extremadura, in addition to autonomous city of Ceuta.

The new royal decree includes programs to increase housing park, something sector was hoping for as may water. In particular, one of aid is allocated to promoters, who will receive up to 30,000 euros for new construction or renovation, in cases of infrahouse or chabolismo, and up to 2,000 euros for which y are rehabilitated or built in rural environments. It also includes contribution of 12,000 euros per property in cases of rehabilitation without limitation by geographic area. These contributions will have a limit of 40% of investment and must have a minimum energy rating of B ( second highest).

The maximum period for execution of works will be five years, two more than in previous plan, and minimum number of houses to access plan is abolished. "It is good to support improvement of park that already exists," says García Montalvo.

Obliged to pay

The programme also contains obligation to Autonomous Communities to co-finance aid. So far, it was optional and could give or not a complementary part. From now on, for every 70 euros that central government contributes, autonomy will have to disburse 10 more or y will be left without help. "This will only apply in 2019, 2020 and 2021 exercises because for this year y already have budgets," nuanced sources of development. In period 2013-2017 did not contribute this complement Baleares, Madrid, Extremadura and autonomous city of Ceuta.

The new plan will replace that of 2013-2016, which is extended a year. It was scheduled to be approved before end of 2017, but process with or administrations and sector has delayed deadlines. However, as has been pointed out in recent weeks, Minister of Public Works, Íñigo de la Serna, will be retroactive since 1 January. In total, 183 observations have been received since May, of which 101 have been included, according to sources of development.

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