MADRID, 20 Feb. (EUROPA PRESS) -

More than 60% of young people who can request guarantees from the Official Credit Institute (ICO) would not obtain financial approval from banks to grant a mortgage, according to the Real Estate Agents (API).

The aid from the ICO and the Ministry of Economy, Commerce and Business brings together up to 2.5 billion euros in guarantees for young people up to 35 years of age and families with dependent minors so that they can buy their first home.

However, according to the General Council of API, these aid are "insufficient and ineffective", as they ensure that young people who want to access these homes would not meet the financial solvency requirements demanded by banking entities.

"It ends up being an insufficient measure for the youngest to access the purchasing market," according to the API General Council.

On the other hand, API warns of caps on rental prices, as they assure that the supply of rental properties would decrease, the average rental price would increase and owners would stop investing in the maintenance of their homes to obtain a "minimum " cost effectiveness.

Furthermore, from API they have pointed out that the use of European 'Next Generation' funds is "below what the sector needs", and they have called for fiscal policies "that encourage real estate investment and invite private capital."