The government plans to secure approval from the Council of Ministers this Tuesday for a guarantee line capped at 2,500 million euros via the Official Credit Institute (ICO). The aim is to support the entry of teenagers and families with dependent minors into the housing market by providing a safety net that covers part of the down payment for home purchases.
During a campaign rally in Vigo for the Galician regional elections, the President announced that the guarantees will back about 20% of the initial down payment. The package is designed to help young buyers under 35 with annual incomes below 37,500 euros, as well as families with dependent children, by offering partial coverage of mortgage loans. The intent is to reduce barriers to homeownership and to ease the burden of upfront costs for those meeting the eligibility criteria. [Source: Government of Spain, 2024]
The measure was previously anticipated after being unveiled by the president in May 2023, during a regional outreach event in Santa Cruz de Tenerife. Since then, the proposal has featured prominently in political discourse around the May 28 regional and municipal elections. In addition to the guarantee, the government has signaled plans to accelerate the construction of hundreds of thousands of new public dwellings. [Source: Government of Spain, 2024]
According to the president, the Council of Ministers will authorize the opening of the guarantee line this Tuesday. The housing ministry has outlined an initial schedule, with the manager hinting at concrete steps only days earlier. Isabel Rodríguez, the Minister of Housing and Urban Agenda, had asserted that the measure would be approved by month’s end. The government’s leadership stressed that the policy would help close the gap that makes it harder for young people and families to obtain a mortgage and purchase a home. The message was especially directed at young workers, underscoring that eligibility could commence as early as Tuesday. [Source: Government of Spain, 2024]
Doubts in banking and real estate due to the 6 billion euros activated by the Housing Ministry
The government argues that the new guarantee line will address several practical concerns. The housing chief has stated that around 50,000 people could benefit from the program, emphasizing that the initiative is meant to alleviate the previous shortages in upfront resources for housing access. The rationale is that rents in many areas have become as costly as mortgage payments, and additional savings difficulties can block entry to homeownership. [Source: Government of Spain, 2024]
During a recent appearance before Congress, the Housing Minister discussed a broader strategy for affordable housing creation. The plan includes a public-private collaboration framework totaling 4,000 million euros and is part of the Recovery Plan annex. The goal is to deliver more than 40,000 affordable rental homes through joint public and private efforts. [Source: Government of Spain, 2024]
The new measures supplement a prior package of 2 billion euros in guarantees approved last December to promote affordable housing, again leveraging both public and private sectors. The government hopes that the necessary materials will be ready for timely approval and that these policies will help stabilize housing costs amid fluctuating prices and interest rates. [Source: Government of Spain, 2024]