Public acquisition of 170 flats to prevent their privatisation

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 three blocks acquired will become part of the public housing stock.

A boost to the public housing stock with the purchase of three properties from the public company Regesa. The blocks belonged to the former Barcelonès County Council and are located in the districts of Horta-Guinardó, Sants-Montjuïc and Nou Barris. The 170 flats would have fallen into private hands in a period of between 15 and 17 years, as was the case with other blocks forming part of the divestment process for the metropolitan area.

Through an investment of 10.7 million euros (17% below market value), the municipal purchase has prevented the loss of the three blocks, located at Carrer de la Mare de Déu de Port, 179-183 (La Marina, Sants-Montjuïc), Carrer de Teodor Llorente, 6-8 (Guinardó, Horta-Guinardó) and Carrer de la Selva, 59-61 (Porta, Nou Barris).

Why can public housing be privatised?

The City Council granted Regesa a free 75-year lease of municipal land for the three buildings in 2006 so that public rental housing could be built. Yet the public protection period was for 30 years, counting from the definitive classification made between 2007 and 2009, a period far shorter than the time when the lease on the use of the land would expire, in 2081.

After the three decades, these homes could have been privatised, but with the direct acquisition by the City Council the flats become publicly owned, safeguarding the right to affordable housing of all the residents renting them.

The properties acquired are practically the last to be owned by Regesa in the city, leaving some thirty remaining homes in different blocks. As these are officially protected, they can be directly purchased by the City Council or any other administration.

Loss of public housing in the city

The privatisation of housing built on public land could have been avoided in other blocks built by Regesa, which at the time were sold with leases. The last episode of this type was in 2013, when the Barcelonès County Council (made up of municipal councils in the Barcelonès area) sold the lease on 298 homes to the investment fund Azora rather than any public administration. The homes were rental flats with a protection period slightly below the duration of the lease.