The government has announced plans for a new financial guarantee aimed at helping young people and families with dependent children purchase homes. Raquel Sánchez, the Minister of Transport, Mobility and Urban Agenda, confirmed at a press conference held after talks between the administration and the real estate sector that up to 50,000 households could benefit from the ICO guarantee program in its initial phase.
Eligibility hinges on income thresholds that position applicants below certain annual limits. If there is a single borrower, the annual income must be under 37,800 euros, while a joint loan allows for up to 75,600 euros. When two borrowers are involved, each applicant must be under 35 years old, although this age cap does not apply to families with minor children. The final draft of the rule, expected to be approved by the Council of Ministers, will also set a maximum property price that varies by autonomous community. The calculation takes regional differences into account to reflect local housing market conditions.
Pedro Sánchez’s administration appears confident in the potential impact of the measure. The regional experience with similar programs, such as the Community of Madrid’s housing guarantee scheme, is notable. Madrid’s program has already allocated around 18 million euros and is expected to benefit between 450 and 650 young buyers. In comparison, the national plan aims for a broader reach, with a target of up to 50,000 beneficiaries. The exact amount required to activate the ICO guarantee remains to be determined.
Raquel Sánchez addressed criticisms from Podemos, describing the package as one more step in a comprehensive housing policy. The guarantees are designed to assist thousands of families and young people who want to purchase a home but lack sufficient down payment. After the housing market downturn, banks often require a 20% down payment, with an additional 10% due for taxes and closing costs. The new policy seeks to ease these upfront barriers.
What housing measures has the government approved?
In addition to the ICO guarantees, Pedro Sánchez highlighted an ambitious housing strategy during the PSOE’s recent announcements in Santa Cruz de Tenerife. Central to the plan is Housing Law, which the government expects to advance through the Senate in the coming weeks. Minister Sánchez described the new regulation as a constitutional instrument to protect the right to housing, reinforcing the state’s commitment to access and affordability.
On the funding side, the administration reports eightfold growth in the housing budget, reaching 3.462 billion euros compared with the previous year. This increase has enabled a broad set of programs, including what is known as the Affordable Rental Plan, designed to bring 184,000 rental homes within reach of households paying market-low rents. Transport officials indicate that roughly 68,000 units are already signed, under development, or in the field. The 184,000 figure includes mobilizing up to 50,000 Sareb units and coordinating 16,000 Sarebs operated by the State Land Organization Sepes, with an additional 20,000 units expected after acquiring certain parcels from the Ministry of Defense.
Another key pillar focuses on renovating existing housing stock to reduce energy dependence and enhance energy efficiency across the national housing park, where a substantial portion currently lacks modern energy performance. The government aims to complete more than half a million residential rehabilitation projects by 2026. Achieving this is expected to cut non-renewable primary energy consumption by more than 30% and decrease heating and cooling demand by more than seven percentage points, according to Transport officials.