European funding to create more housing with affordable rents

Housing Glossary

You will find information here on all topics relating to housing in Barcelona

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accrued interest

The interest applied as a penalisation when the debtor does not comply with repayment obligations. The amount must be established in the contract.

Active supermortgage

This allows the client to choose their loan's benchmark index (MIBOR at three months, six months or a year) so that payment can benefit from lower interest rates sooner.

Adaptable instalment

Characteristic of UCI superloans that allow the borrower to not pay one instalment a year for the first three years if there are problems due to holidays, extraordinary expenses, etc.

Advanced cancellation fee

A commission arising from the financial risk involved in the advanced cancellation of an operation. The applied commission compensates the financial institution for its financial losses.

AEDE

Direct state aid for paying the deposit on a property.

Affordable housing

Group of social housing or dwellings from social renovation projects that are sold or rented at below-market prices.

Affordable rent

The cost of renting these dwellings is below market prices after being included in operations concerning the rented flat pool, social renovation or social housing promotions.

Amortisation

Payment made to repay a loan.

Amortisation period

The duration of the loan. The contract establishes the date of the first and last payments. The longer the period, the lower the payments are, but the higher the interest. You therefore pay more in the end. The monthly instalment should not exceed 35% of your net income.

API

Estate agent. A qualified professional who acts as an intermediary between the two interested parties to facilitate the signing of a real estate contract, which can be a rental agreement, a sales agreement or another similar contract. They usually charge a percentage of the sales price as compensation or commission.

Applicant

A citizen who makes a registration application to the Barcelona Social Housing Applicants Registry, and who represents the other members of the dwelling unit included in the application.

APR

Annual Equivalent Rate. Effective annual cost of the mortgage in terms of interest, commissions and the repayment period. To compare loans, it is not enough to just look at the lowest APR, you also have to compare the conditions, the repayment period and the distribution of instalment payments.

Arbitri municipal de plusvàlua

Former denomination of the capital gains tax on landed property.

Assessment

The value of a dwelling certified by a specialised assessment company, in accordance with the mortgage market law. This certificate not only indicates the real value of the property, it also serves as a reference for obtaining the necessary financing.

Authorisation

Document in which the owner authorises the tenant to carry out building work in the dwelling's interior.

Housing. The new agreement with the European Investment Bank will provide 36.2 million euros in funding for eleven building projects, creating 489 new homes with affordable rents.

A deal with the European Investment Bank (EIB) will provide funding for the construction of eleven social housing blocks around the city, creating 489 homes. The project has a budget of 36.2 million euros, which may be extended up to 65 million.

Besides boosting public housing in the city, the agreement seeks to foster energy efficiency, urban renewal, climate action and inclusion for social services. It also means the construction of nursery schools, local facilities for young people and the elderly, communal yards and meeting spaces.

In terms of energy efficiency, all the homes will have an energy performance at least 20% superior to the minimum required by Spanish law for residential housing. This means savings equivalent to the annual energy consumption of 70 households.

More homes and more innovative

The eleven projects in the agreement include some of the most innovative housing blocks to be executed in the city to date. One example are the two buildings of 135 pre-fabricated homes made from wood at the former barracks in Sant Andreu. Another is the promotion of 40 temporary APROP homes to be built from recycled shipping containers in the neighbourhood of La Bordeta.

The European public bank plays a key role in the construction of public housing with affordable rents, even more so now. The new deal is part of a package of European measures to tackle the pandemic and comes in addition to the 2017 agreement which helped fund the construction of 1,570 public homes.

The project will help create more than 570 jobs a year during the construction stage.