The PP commits to overturning the current Housing Law if it reaches Government, which will mean removing the areas of tense residential market and the rent price index, by understanding that these tools have generated “more intervention, more uncertainty and less supply” in the rental market. At the same time, it will put in place a package of tax incentives and guarantee systems to make it easier for young people to acquire their first home.
As the party’s electoral program details, it proposes reducing the VAT applied to the purchase of a first home for those under 40 years of age from 10% to 4% and allowing that tax to be paid in installments, aligned with the mortgage calendar.
For those who choose a second-hand home, the PP proposes reaching agreements with the autonomous communities to reduce the transfer tax on assets (ITP), likewise with the option of paying the levy in installments. It also provides for extending from two to four years the period available to reinvest the amount obtained from the sale of the main residence while maintaining the exemption in the IRPF.
Expansion of public guarantees and new “home savings” account
The program also includes expanding the public guarantee that covers up to 20% of the value of the property for buyers under 40 years of age, with the possibility of raising the age limit to 50, so that the mortgage can also finance the down payment on the home.
Alongside this, the creation of the “hucha hogar joven” is planned—an account specifically in which those under 40 years of age may deposit up to 2,000 euros per year earmarked for the purchase of their first house, with a 20% tax deduction on contributions and a cumulative cap of 40,000 euros. The returns generated will be exempt from taxation provided that the savings are used for that purchase, and holders may obtain a guarantee for the same amount saved, up to a maximum of 40,000 euros, to access financing with a subsidized interest rate.
One million homes and urban planning streamlining
In terms of supply, the PP maintains its goal of raising one million homes and proposes to activate public and private land, promote a new Land Law, and set a maximum deadline of three months to process new construction and rehabilitation licenses, with the figure of positive administrative silence. It also defends authorizing the construction of social housing on developed land and allowing the change of use of offices and commercial premises to dedicate them to affordable housing.
The program also incorporates the creation of a new urban-planning figure that accelerates large residential developments, the push for industrialized housing, and greater flexibility for urban regeneration through modifications to the buildability and the height of the buildings, including the option of adding new floors.
Super-reduced VAT for rehabilitation and more financing
Lastly, the PP intends to boost the rehabilitation of vacant homes or those in poor condition through a super-reduced VAT of 4% for works on the habitual home, together with direct aid, public financing lines, and preferred guarantees.
The document also backs mobilizing resources from the Instituto de Crédito Oficial (ICO), the European Investment Bank, and European funds to develop land and build affordable housing, improve financing for local entities by linking it to specific objectives in this area, and launch a training and employment plan that makes it possible to meet the demand for labor in the construction sector.