Official guarantees from the ICO, backed by the government, aim to simplify the purchase of a first home for young people under 35 and for families with children. Experts consulted for this article estimate that around 7,000 minors in the Valencia region will benefit. The President of the Housing Observatory at the Polytechnic University of Valencia believes that reducing the initial payment will expand access to home ownership, and supporters of the measure celebrate a policy they have pressed for over the years. Consultants caution that the new loan pool is unlikely to push real estate prices higher. Early buyers have already started reaching out to real estate agents to explore opportunities.
Under the scheme, government guarantees cover 20 to 25 percent of the property price, the portion banks typically require buyers to contribute for a mortgage. In practice, this initial barrier kept many capable buyers from proceeding because they did not have enough savings, even though their mortgage payments would be lower than their rent. For example, in Valencia purchasing a 200,000 euro apartment would normally require about 50,000 euros in savings (20 percent not financed by the bank and 10 percent for expenses). With ICO backing, the guarantor enables lenders to finance nearly the full amount, meaning buyers would only need to save about 10 percent to cover costs such as taxes, notary fees, and registration.
Beneficiaries must earn no more than 37,800 euros gross per year (4.5 times the IPREM). If two people buy together, the income cap doubles to 75,600 euros. Additional improvements apply based on the number of children and whether the family is single-parent. Specifically, the limit increases by 0.3 times the IPREM (2,520 euros gross per year) for each child, and in the case of a single-parent family the cap can rise by an additional 70 percent. Likewise, buyers’ assets must not exceed 100,000 euros.
The Housing Observatory at the UPV estimates the measure will benefit up to 7,000 residents of the Valencian Community. Fernando Cos-Gayón notes that the ICO guarantee will drive home purchases and may allow people currently renting to buy. He points to the United Kingdom’s Help to Buy program as a successful example, where the government provides an equity loan covering up to 95 percent of a home’s value, with buyers contributing only five percent upfront.
Parental Assistance
Jose Manuel Martínez Plaza, deputy director general and head of the Residential Area at Olivares Consultores, observes that fewer than 10 percent of purchases are currently made by young buyers. He explains that many young people rely on parental help to cover the 10 percent private contract when a property is bought off-plan. They are capable of meeting monthly payments but do not have 20,000 euros saved, which would have been a hurdle before the program.
Developers
Antonio Olmedo, president of the Valencia Provincial Association of Real Estate Developers and Urbanizers, stresses that the approval of the guarantees is a positive development. He notes that years of advocacy were aimed at ensuring young people have access to property, since many cannot enter the ownership market due to insufficient purchasing power. He argues that the measure should be complemented with fiscal relief similar to past provisions to maximize its impact.
Nora García, president of the Valencia Association of Real Estate Companies (Asicval), asserts that the need for support is clear because the typical buyer profile has shifted toward buyers aged around 42, with many young people still shut out. Vicente Díez, a spokesperson for the Valencia Real Estate Agents Association (API Valencia), adds that inquiries about the guarantees are already arriving and notes that with savings of around 14,000 euros a young buyer could purchase a home.