New housing plan to help young people buy first homes with 0% interest loans

Catalan president Salvador Illa announced on Monday a new set of benefits aimed at helping young people cover the down payment for their first home. 

The program will cover 20% of the property's value with a 0% interest loan, which will not need to be repaid until the mortgage is fully paid off. 

Additionally, any housing financed through this scheme will be permanently protected as affordable housing.

If the property is ever sold, the resale price will be capped at the original purchase price. 

Illa said the €500 million initiative is designed to help young people purchase their first home while also expanding the stock of social housing. 

The measure is expected to be approved by the government on Tuesday.

The government's proposal is part of the idea to build 50,000 public housing units by 2030. Illa said that the current housing market "is failing the system" and "is endangering a basic right."

He also stated that the airport expansion announced last week and the housing crisis are "two sides of the same coin." 

"We will respect all opinions, but Catalonia cannot lose more time," he said on Monday during a statement at an event in Barcelona organized by the Spanish finance newspaper El Economista.