“I want to say something to the prime minister of this country: the proposals presented for housing, particularly this concept of an average rent of 2,300 euros, will cause another spiraling increase in rental costs,” said today at a rally of João Paulo Correia’s (PS) candidacy for the Vila Nova de Gaia City Council (Porto district).
For José Luís Carneiro, this “will severely harm middle-class families, especially the young in our country,” further warning of a new “liberalization” of rents.
“This is a new way of liberalizing rents. We had a form in the famous rent liberalization law – ‘Cristas law’,” referring to former minister Assunção Cristas, “and now we have a new way of liberalizing rents, claiming they can reach up to the average rent concept of 2,300 euros.”
José Luís Carneiro recalled that “Portugal was one of the OECD [Organization for Economic Cooperation and Development] countries where housing costs increased the most in the second quarter of this year, rising more than 17%.”
Later, speaking to journalists, the PS secretary-general added that the housing issue in Portugal “could become an explosive factor” in collective life.
“[The cost of] housing has grown, in Portugal, more, and in a vertiginous way, since this Government took office, due to policies it adopted,” he observed.
Considering that “guarantees to young people are important,” José Luís Carneiro added that, in addition, “it is necessary for the State to build housing at an accelerated pace and involve all actors: civil builders, private agents, cooperatives, associations, IHRU [Institute for Housing and Urban Rehabilitation], and for the State to strengthen financial means so that municipalities can build more housing.”
“Either we manage to put more housing on the market, working on the supply side, or, by working only on the demand side, we will exponentially increase housing costs, and this will cause explosive effects in the cities of the country,” warned the socialist leader.
On Friday, José Luís Carneiro had already expressed surprise at the fact that the Government considers the average Portuguese rent to be 2,300 euros, saying that this shows a lack of familiarity with the country.
On Thursday, at the end of the Council of Ministers, Luís Montenegro announced that the Government will reduce the VAT rate to 6% for the construction of houses for sale up to 648,000 euros or, if for rental, with rents up to 2,300 euros – a tax regime that will be in place until 2029.
Additionally, the minimum VAT rate of 6% will also apply to “the construction and rehabilitation of buildings” for rentals up to the amount of 2,300 euros.”
