The acronym VPO is normally used in the real estate market to refer to a type of housing that has public protection, and, as such, are subject to limitations regarding their price. In general terms, they are partially subsidized by the State or the territorial administration in question.
What are Official Protection Housing?
The acronym VPO corresponds exactly to the name Official Protection Housing. The objective of this type of housing is to facilitate those citizens who meet certain requirements, generally related to income, that they can rent or buy suitable housing at prices that they can afford.
Since, the urban regulations are mainly local and autonomous competence, there is no normative or legislative uniformity within the Spanish territory, but it is necessary to abide by the autonomic regulations.
Protective housing has limitations in terms of use, since they must constitute the habitual residence of their owners. In addition, they can only be transmitted by sale or be leased. A distinction can be made between protected housing of a general, subsidized and special nature.
This type of housing is classified in the relevant plans and entails limited benefits for the builder and buyer. In the case of the builder or developer, for example, part of the project is financed to a interest rate low, but the maximum price at which such homes can be sold is limited. Since the classifications have to be approved by the Administration, it is very frequent that the developer is imposed, in order to build free housing, that a part of the houses be classified as official protection.
The benefit that the buyer receives is clear, since the price is lower than that of the mercado. Although, as we indicated, there are limitations of use and also limitations in the event of resale: If the buyer of a VPO wants to sell it, he cannot do so above the prices set by the administration. The latter normally has an exception that occurs over time, but which is neither general nor homogeneous in all Autonomous Communities.