The officially protected housing or VPO is a type of housing that has advantages regarding its price, which is below that of equivalent goods in the market.
VPO meaning: the acronym VPO refers to Officially Protected Housing. That is, an officially protected apartment is a housing subject to a public protection regime, with a maximum price regulated and special conditions for purchase, rental, or transfer.
It is a system promoted by the Spanish public administration, and each of the Autonomous Communities legislates on this matter.
At Gumper, we want to share everything relevant about officially protected housing to understand in depth its typology, characteristics, and requirements to access this type of property.
What is officially protected or protected housing?
An Autonomous Community legislates a certain % of its housing stock to be protected. This means that it verifies that they meet a series of characteristics to have a price lower than the market price and thus resolve a vulnerability situation for a certain part of the population, facilitating access to decent housing under better economic conditions than the market.
One of the most common questions is how much does officially protected housing cost. The reality is that the price depends on the area, the current protection module, and the type of qualification, but there is always a maximum sale price set by the administration. This means that a VPO housing can cost less than an equivalent free housing, although it will also be more limited in resale and conditions.
When a housing is classified as officially protected housing, the builder of the same also benefits and therefore incurs certain obligations with the housing and its new owner.
Advantages for the developer of officially protected housing
As we mentioned earlier, the developer/builder of the housing or buyer receives certain benefits when the work is considered officially protected. In the case of the developer/builder, the benefits would be:
- Financing of up to 80% of the total project at a low-interest rate.
- Condition of VPO to allow the construction of free housing.
- Ease of marketing the new construction promotion.
Advantages for the buyer of officially protected housing
The advantages as a buyer of an official protected housing can be summarized as:
- Significantly lower price than the market.
- Financial subsidies for the purchase in certain cases.
- Assistance according to the autonomous community for mortgage processing or tax advantages among others.
We must also consider that not everything is an advantage and that accessing an official protected housing also entails a series of obligations or inconveniences, such as:
- Selling the property: On average, this period is 10 years, this period is determined by the autonomous community in which the property is located, from the purchase process and is considered a protected housing cannot be put up for sale. In the event that payment is impossible, the corresponding administration can be requested to study the case and resolve the sale of the property, at that moment and if necessary, the aids received during the purchase process or tax benefits derived from it will be claimed.
- The sale price: The price will be regulated by the autonomous community, therefore it will be limited when selling the property as long as it is still considered protected. The administration will establish a price taking into account the price of similar properties in the same protection regime and that have a nearby location.
- Preferential right: In the case of wanting to take the step of putting our official protected housing up for sale, we must first offer it to the administration. The assignment of the purchase or the right to exercise it by the administration will depend on the regulations of each autonomous community.
What should I do to buy an official protected housing or VPO?
How long does the official protection of a housing last?
One of the most frequent doubts is how many years the official protection of a housing lasts. The duration of the protection regime depends on the applicable regulations and the type of promotion (public or private), but it is common for the property to be protected for a minimum period that can range from 10 years to 30 years or even more, depending on the Autonomous Community.
During that time, the housing is considered a property subject to a protection regime, so it may have sale limitations, regulated maximum price, and restrictions on who can buy it.
Can an official protected apartment be sold?
Yes, it is possible to sell a protected housing, but normally only if certain conditions are met: respecting the maximum sale price, having passed the minimum protection period, or requesting administrative authorization. In some cases, there is also a right of first refusal, whereby the administration may have preference to purchase it.
Additionally, many people wonder if it is possible to buy VPO housing without disqualification. The answer is yes, but as long as it remains classified as protected, the buyer must also meet the access requirements established in that Autonomous Community.
What is the disqualification of a VPO housing?
Disqualification is the process by which a housing ceases to be protected and becomes free housing. However, it is not always possible, and in many cases, it involves returning aids or tax benefits obtained at the time. Therefore, before selling or buying a protected apartment, it is advisable to study the file and check its registration status.
As we have seen, the economic factor is one of the key points as an advantage in purchasing a protected housing. For this reason, not everyone can access this type of housing, as, in the first place, they aim to favor those people whose economic situation makes it difficult to access housing in the open market.
Each autonomous community establishes its own requirements, and although most are common, we recommend consulting the regulations of each community. In Catalonia, you can find the current regulations in the applicants’ registry at http://www.registresolicitants.cat/registre/apuntate/01_normativa.jsp.
Main requirements to access a protected housing
- You cannot be in possession of a housing. That is, when applying, you cannot be the owner of a property. It is common sense that a protected housing cannot be used as a second residence.
- Registration in the applicants’ registry: To initiate the procedures, we must register in the applicants’ registry of the autonomous community where we want to request the property. In the case of Catalonia, you can access https://www.registresolicitants.cat/registre/solicitud/
- Only once. If a protected housing has already been granted, a second request cannot be made. There is a possibility to resume a new application, and that would be to demonstrate to the administration that the granted property has ceased to be suitable for the family circumstances.
- Housing assistance. No assistance from the administration regarding housing can have been received in the last ten years. (10 years)
- Annual Income. Each autonomous community establishes the maximum annual income that determines the ability to apply for a protected housing. Each of them will create a scale based on the average income of the area. In many cases, the Public Indicator of Multiple Effects Income (IPREM) can be taken as a reference. This index is a mechanism commonly used for the allocation of aid in terms of subsidies, assistance, or unemployment.
That is why many people wonder if it is possible to buy a home having one of VPO or if one can apply for a VPO while being a homeowner. In general, the regulations usually prevent it except for very justified exceptions (for example, family change, disability, separation, or inadequate housing). In these cases, documentary accreditation and administrative authorization are required.
These requirements are the most common; however, there may be other additional ones, such as a minimum residency period in the community where the property is desired.
What types of protected housing exist?
There are different types of protected housing, and these types we can opt for may be conditioned by our income level.
It is also important to differentiate between a publicly promoted protected housing and a privately promoted protected housing. In both cases, there are regulations regarding price and requirements, but in private promotion, the developer is a private company that builds under the VPO regime, while in public promotion, it is the administration that directly promotes the project.
- Publicly protected housing
This is the first type of protected housing we find. It is the most well-known category, those referred to as publicly protected housing or VPP. The usual difference between VPOs is that they are of higher quality and finishes. Thus, it would be a type of housing much better qualified and therefore at a higher cost.
- Basic publicly protected housing
This type of housing is intended for families or individuals with fewer resources. They are of a lower quality and their cost is also much lower. The so-called VPPB will be aimed at helping the most disadvantaged people.
- Limited price protection housing
The PMLV or limited price protection housing is subject to a legal maximum sale price and can only be built on land designated for free housing.
- Publicly protected rental housing
Throughout our article, we have talked little about rental, however, it also has a place in official protected housing. This is where the so-called VPPA or publicly protected rental housing comes in. This modality includes a construction limit of up to 110 square meters, and in the case it is intended for a large family, it can reach up to 150 square meters.
Just like in the official protected housing for purchase, in rental housing we find that each community will take as a reference the maximum annual income of the applicant for its allocation.
In the case of VPO rental housing, there is also a maximum rent set by the administration. This means that the owner cannot freely rent at the price set by the market, but must respect the regime of regulated price housing or protected housing, as applicable.
Is it possible to rent with an option to buy in official protected housing?
We can find a perhaps less used modality which is renting with an option to buy. The apartments are intended, as their name indicates, to allow for purchase after a rental period.
Within this modality, we find two types of protected housing with an option to buy.
- Youth. This initiative seeks to promote housing among people under 35 years old, the limits of the housing are established with a maximum annual income, just like the previous ones, and about 70 square meters for most territories.
- General. Excluding those under 35 years old. You can apply in the case of a large family without considering the age range.
As we have seen, official protected housing has a wide variety of options. At Gumper, we are experts in selling official protected apartments in Barcelona. We will be happy to advise you and help you manage your processes.
