New government scheme to offer financial support for Spanish homebuyers

Spain’s first-time buyer market has been in the doldrums for a few years, but this new scheme could bring buoyancy to the sector.

Introduced last week by the Spanish government, the State Housing Plan for 2018 to 2021 will introduce a payment subsidy of up to €10,800 for those aged under 35 who wish to buy the home they live in…

The support scheme is intended to offer a leg-up to first-time buyers in Spain, while also providing a sustainable boost to the country’s strengthening property market.

The scheme is likely to have vast amounts of political support, and will also grease the wheels of the economy, offering young Spaniards greater scope to get on to the property ladder while also underpinning financial security.

The subsidy will be made available from next year to “property buyers who are aged under 35 who are purchasing their place of habitual residence”, the State Housing Plan says, and only those earning less than €22,635 per year will be eligible.

Monies are capped at €10,800, or a maximum of 20% of the purchase price. Additional support outlined in the plan also extends to rent support for youngsters, while those of pensionable age and at risk of eviction will also be able to call upon government funds, should their situation qualify them for help.

A strong and better regulated rental market can also support Spain’s real estate sector, enabling younger and lower-income Spaniards to save up the necessary deposit for a mortgage, the government hopes.

Data from the National Institute of Statistics (INE) have revealed that during the first two months of 2017, property sales transactions were 10% higher than last year, across the whole of Spain.

For the Málaga region, that increase was slightly higher, at 12%.