The recent benefits facilitating young people’s access to first permanent housing have driven the growth in housing credit, as the young demographic now plays a more significant role in new credits, according to the Banco de Portugal (BdP) analysis released today.
Between January 2022 and July 2024, young people accounted for 44% of new contracts for acquiring permanent housing. This figure rose to 53% in August 2024 after the decree-law exempting youths from paying the Municipal Property Transfer Tax (IMT) and Stamp Duty (IS) came into effect. During the first eight months of 2025, reflecting another measure establishing a personal state guarantee scheme for young people up to 35 years old, this group represented 59% of the new housing credit contracts.
The central bank reported that by August, the accumulated new permanent housing loan contracts reached €12 billion, compared with €8.2 billion during the same period in 2024.
Youths up to 35 years old directly secured €7.1 billion of this total, exceeding the €3.5 billion recorded in the same timeframe in 2024. Borrowers over the age of 35 secured €4.9 billion, just €200 million more than in the first eight months of 2024.
From January 2022 onwards, the monthly volume of new credit contracts for acquiring permanent housing hit a low of €598 million in April 2023, showing a growth trend since.
The average credit amount granted to young people for permanent housing acquisition remained nearly unchanged, at €136,100 in January 2022 versus €134,700 in December 2023. However, a rising trend began in 2024, with the figure climbing to €159,200 by August, following the introduction of the IMT and IS exemption.
By August of this year, the average credit amount granted to young people rose to €192,600, marking a 43% increase from December 2023. Meanwhile, the average credit for borrowers over 35 years increased less over the same period, from €127,300 in December 2023 to €159,200 in August 2025, a 25% variation.
Additionally, Banco de Portugal’s data reveals that the average price of permanent housing purchased with credit by young people grew by 8% during the first eight months of 2025, rising from €218,400 in December 2024 to €235,700 in August 2025. This follows a 14% increase in the previous period.
The central bank notes that the average price of housing acquired by young people stayed below that of borrowers over 35, with this gap widening in the year’s first eight months.
In August, houses bought with credit by those over 35 averaged €275,400, €39,800 more than the average cost for younger buyers. In 2024, the average difference was €29,000.
Despite buying homes at a lower average price than other borrowers, young people secure higher average credit amounts, indicating a decreased reliance on personal funds relative to older borrowers.
As of August 2025, the average credit obtained by young people represented 82% of the average property acquisition price, compared to 58% among borrowers over 35. With the personal state guarantee in effect during the first eight months of this year, this ratio increased by seven percentage points for young people, while for borrowers over 35, it decreased by one percentage point.
The housing credit stock reached €107.1 billion in August, with contracts involving young borrowers accounting for 23% of the total, an increase of three percentage points compared to the same period last year.
In August, this stock rose by 8.4% year-on-year, with young people contributing to nearly the entire variation.
The BdP notes positive and rising annual variation rates for housing credit stock since June 2024, with contributions from both age brackets. The contribution of young borrowers rose from 2.7 percentage points in June 2024 to 8.2 points in August 2025, while that of borrowers over 35 shifted from -2.6 points to 0.1 percentage points.
