If you have come here searching for “what is VPP,” the quick answer is simple: a VPP home is a protected home promoted by a public entity, with a limited price and specific requirements to access it. It is a very interesting option for those who want to buy a home without paying the prices of the free market.
However, as with any publicly protected housing, there are also limitations: it cannot be sold freely, it cannot be used as a second residence, and income and registration criteria must be met.
What is a protected home?
A protected home is one that we can find in the real estate market at a price lower than a home with the same characteristics but that has a series of regulations to which we must adhere to access and have the right to request it.In other words, a protected home is characterized by having a maximum legal price (both in purchase and rental) and being subject to an administrative qualification. This qualification determines how many years it remains protected and under what conditions it can be transferred or disqualified.
Therefore, before buying a protected home, it is advisable to always review the applicable regime: type of protection, duration, sale limitations, rental possibilities, and whether there is an option for future disqualification.
Within protected homes, we find different types, VPO, VPP… Today we want to explain to you about the VPP and its possibilities.VPP Home. What is it and how can you access it?
Real estate opportunities like those offered by VPP homes are few if we look at it from a purely economic point of view when it comes to disbursing the cost of a property. When we refer to a VPP home, we are talking about a public promotion home (not to be confused with VOP housing or official protection housing). A VPP is a home where all elements from the purchase of the land to its construction are carried out and managed by a public entity.From a practical point of view, the big difference of the VPP home compared to other protected homes is that the Administration not only regulates the price but also participates directly in the promotion, allocation, and control of the property.
This usually translates into greater transparency in the allocation process, but also into stricter control over the use of the property. For example, it is checked that the buyer uses it as a primary and permanent residence, preventing it from being used as a speculative investment.
It is also common for VPP housing to be integrated into developments with current criteria: energy efficiency, common areas, and nearby public facilities, especially in large cities where affordable housing is a priority.
The first requirement to access this type of housing is geographical; we must be registered in the place where we want to make the request. Therefore, taking the city of Barcelona as an example, we should register in the municipal registry and then access the housing page where we can apply when applications are open. You can see the link to public housing from the Ajuntament de Barcelona here. The second requirement is economic, and since these are homes that have a lower cost, you must meet an economic parameter in your family unit determined. To access a VPP home, the family unit must not exceed 5.5 times the IPREM. Among the circumstances related to the economic situation and which are application requirements is that the applicant cannot own another home.In practice, when we talk about income, the most important thing is to understand that the cohabitation unit (people who will live in the home) is evaluated and that income must be accredited through official documentation. Additionally, there may be criteria that prioritize certain profiles: large families, people with disabilities, young people, or situations of housing emergency.
Therefore, if you are interested in a VPP home, it is advisable to prepare documentation in advance such as: DNI/NIE, certificate of registration, income tax return, work history, and proof of income. This speeds up the process and prevents your application from being excluded due to administrative errors.
We must always view this type of housing as market opportunities for users who have difficulties accessing free housing, and therefore economic limits are essential to regulate applications. You should also know that we want to dispel an established myth about the quality of protected housing. While in official protected housing we find somewhat lower qualities, in the case of VPP housing, we find higher quality materials than in VPO, which will also be reflected in the costs, since VPP homes have a higher cost than VPO homes. The allocation process is very simple, and once we have registered, the construction company along with the real estate agency allocates the apartments through a public competition or lottery.Differences between VPP, VPO, and free housing
One of the most common questions is the difference between VPP, VPO, and free housing. Although all can be considered protected housing, they do not operate the same way.
- VPP (Public Promotion Housing): promoted directly by a public entity. The allocation process is usually through a lottery or competition.
- VPO (Official Protection Housing): can be promoted by public or private entities, but always under a regulated price and access regime.
- Free housing: has no legal maximum price or purchase requirements, and can be sold or rented without specific limitations.
Understanding this difference is key to assessing whether a VPP housing is truly suitable for you or if another type of protected housing fits better.
What limitations does a VPP housing have?
As we have discussed throughout the article, VPP housing has great economic advantages when it comes to acquisition. However, we must consider the limitations on its use and commercialization, as failing to comply with some of the measures may lead to a harsh penalty.- Surface limitation: Although we have little to say on this aspect, since it depends on the developer and construction for the preparation of plans and execution of the housing, we must know that the properties cannot exceed 100 square meters in size.
- Use and enjoyment: The housing must be the usual residence of the residents. We cannot obtain a VPP as a second residence, and it must be in that property where we establish our usual residence.
- Sale: While the housing is within the housing protection plan, we cannot sell it at market price. This prevents the generation of fraudulent business by buying cheaper homes and selling them at market prices. When we have the opportunity to sell it, we must do so at the market price established in the VPP offer.
Transfer of property of protected housing
We may find ourselves in the situation of having inherited a protected housing; in that case, we must keep the following information in mind:- Appraisal: We must know the value of the housing, which will depend on whether it is disqualified or not. If the housing has already been disqualified, we can appraise it normally as it is free housing. If the housing has not been disqualified, a double appraisal must be taken, on one hand, the market value and on the other the legal maximum. In the comparison, we must choose the lower value. If the housing is not disqualified but is going to be, the appraisal will be done freely.
- Property limitation: We saw that to apply for protected housing, it was necessary not to have any other property. This requirement, in the case of an inherited asset that is subject to official protection, will not be exclusive; therefore, we can inherit a protected property, even if we have established our usual residence elsewhere or have other properties. You should keep in mind that if at any time you want to access its sale, the new owner must allocate it to primary residence or usual housing.
