Alex Trelinski
SPAIN’S Prime Minister, Pedro Sanchez, has confirmed the extension- after two years- of financial help for younger people to get a rental property.
High property prices and low wages make saving difficult for people aged under 30, leading to the average age of people leaving home being 30.4 years- far above other European countries.
The PSOE’s government’s junior coalition partner, Sumar, does not support the extension of the measure.
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In a statement it said it will increase problems with housing and hike rental prices.
“The bonus, instead of solving the structural problem of access to housing, opens the possibility of public funds passing into the hands of landlords, who continue to raise prices,” it warned.
It added the bonus ‘makes no sense’ if it is not accompanied by a price cap.
The Youth Rental Bonus fund is worth €200 million and delivers a monthly sum of €250 to each beneficiary.
There are conditions, namely that applicants have to be between 18 and 35 years old, and able to prove their work income.
They also have to show that their annual income is three times lower than what is known as the Public Indicator of Income of Multiple Effects (IPREM), which varies between each of Spain’s regions.
Other provisos are that the monthly rent of the property does not exceed €600 and in the case of a one-room rental, does not go above €300 per month.
The Youth Rental Bonus has to be compatible with the State Housing Plan and is granted for a maximum period of two years.
Finally, the beneficiary’s annual salary must be less than €24,318.
The bonus does not apply to the Basque Country and Navarre as they have their own regional aid schemes.
The remaining regions will assume the management of bonus funds and applicants will have to send in forms as required by those areas.
