The Ministry of Housing and Urban Agenda, through the State Housing Entity Casa 47, which is attached to the Government, approves a public call for 100 million euros to buy private homes spread throughout Spain that will become part of the state public stock and will be used for affordable rentals. The initiative will allow private owners and companies to offer their properties for purchase by the State.
Proposals may be submitted from the day following the publication of the call on the Public Sector Contracting Platform, and the process will remain open for four months. The program will prioritize homes located in stressed residential market areas, that is, areas where households allocate more than 30% of their income to paying for housing, although offers that include complete blocks or groups of homes will also be valued.
All of this responds to the enormous housing crisis that Spain is currently experiencing, in which housing prices have skyrocketed by 13% and have once again set records. Young people and not so young people find it increasingly difficult not only to buy a property, but also to rent it.
What type of homes are going to be sold?
According to the call, there are a series of technical requirements for the properties that can be offered, so not just any one will do. Only high-rise homes that are not single-family homes will be admitted, with surfaces between 40 and 120 square meters and with at least 75% of the useful surface of the total built. Another requirement is that they must be exterior or have adequate ventilation, and they cannot have bedrooms without windows.
The homes must include a kitchen, living room or main room and at least one full bathroom, all of this at a minimum. Studios or lofts in which the living room, kitchen and bedroom share a single space will also be accepted. In the case of buildings, the elevator will be mandatory when the home is located on the fourth floor or higher.
One of the key requirements is that the property be delivered empty and free of tenants or occupants, although it may include fixed installations or basic kitchen equipment. Likewise, the property must be transferred free of charges, although it is allowed to have a mortgage as long as it is canceled at the time of sale.
Limited reforms and exclusion of VPO
The program also contemplates the purchase of homes that need limited renovation, as long as the work does not require new habitability licenses and can be carried out within an approximate period of up to six months. The total cost of the operation, including the purchase price and rehabilitation, may not exceed 110% of the appraisal value.
Protected housing (VPO) regulated by regional regulations are excluded from the call.
How the purchase price will be set
The final price will be determined through a public tender and will be calculated taking as a reference the lowest value between the price offered by the owner, the appraisal of the property and the average price per square meter in the area, according to data from the Notarial Statistical Portal.
In this way, the State seeks to avoid paying above the market. As an example, a 70 square meter home located in an area where the average price is 2,000 euros per square meter would have a maximum value of 140,000 euros.
Documentation and award process
Owners must present technical documentation such as a recent simple registration note, cadastral certification and energy efficiency certificate, among other documents. Before formalizing the purchase, Casa 47 will carry out a technical visit and a property suitability report.
The formalization of the sale will be carried out by public deed, generally within a period that can range from 15 days after the award to a maximum of two months, with the possibility of exceptional extension.
With this call, the Executive intends to increase the public rental housing stock, one of the main structural deficits of the Spanish residential market, especially in large cities and metropolitan areas where price pressure has intensified in recent years.