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The reform of the 2005-2008 Housing Plan, recently approved by the Spanish cabinet, introduced the concept of renting state-subsidised housing with the option to buy. According to the regulations, tenants can purchase the property ten years after it was built and those who have rented in state-subsidised housing for at least five years will have preference. The purchase price will include a discount representing the rent paid during the rental period. 

In order to find out about the properties which fall into this category, the best thing to do is to contact your local council,  where via the Urban Development and Housing Council or other body related to the local or regional government, you will be provided with the following details: developments associated to this scheme, application requirements and types of public grants and subsidies. Another information channel is the Public Rental Company, whose web portal allows you to make all kinds of enquiries. The third website that we recommend, aimed at young people (below the age of 35), is www.ayudasviviendajoven.es, where this group will find information about state-subsidised housing for renting with the option to buy.  

The housing cheque 

Some autonomous regions have a grant known as the housing cheque, which involves giving a certain amount of money to tenants who opt for the arrangement described above, in other words, tenants in state-subsidised housing with an option to buy. In order to be entitled to this housing cheque, the applicant’s income must not exceed 5.5 times the IPREM (Public Indicator for Income from Multiple Effects). 

The size of this subsidy ranges between 5% and 15% of the total cost of the property, depending on a series of conditions related to the applicant’s age and family situation. For example, young people are awarded 10% of the total property price or even 15% if they are unemployed, whilst those with large families receive a 5% subsidy. 

The total property value includes the price of the state-subsidised housing for renting with the option to buy plus the price of the garage and/or lumber room linked to the building (if any). The previously mentioned percentages are applied to this total amount and this is the sum that citizens receive by way of grants. 

Regional and local governments are promoting the building of state-subsidised housing with specific characteristics in order to satisfy the needs of different groups. Those aimed at large families are bigger and have more rooms than those aimed at young people. 

Private initiative 

The experts and property market analysts say that renting with the option to buy is a formula that is favoured during periods of crisis or slowing down in the sector. That way, agencies can shift many properties that would otherwise go nowhere due to a lack of dynamism in the market. This option is interesting for those people who, due to their financial and employment situations, have problems securing a bank loan and cannot pay the deposit. For a figure ranging between 500 and 800 euros per month, depending on the kind of property, the tenant can rent a flat and after between two and five years, they can opt to purchase it. These time frames and the discounts that will apply to the purchaser due to the rent paid are established in the contract which covers each and every condition: the rental period and cost, the timeframe for opting to purchase the property, as well as its approximate cost, taking into account its revaluation. 

The government’s endorsement of this scheme, which where appropriate is applied to state-subsidised apartments, has a big influence on the fact that agencies and private companies are showing interest and an increasing number of property developers are launching new housing developments adopting this scheme.

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