A joint position submitted to the Ministry of Infrastructure and Housing by the associations of National Construction and Public Works Industry (AICCOPN), Lisbon Property Owners (ALP), Portugal’s Real Estate Mediation Professionals and Companies (APEMIP), Real Estate Developers and Investors (APPII), and Investment, Pension, and Heritage Funds (APFIPP) outlines a series of proposals aimed at “generating a wave of confidence and creating a more functional market capable of increasing the supply of affordable rental housing”.
“The primary objective of the proposed measures is to create a functional and dignified rental market that is substantial enough to provide a real and effective response to the current housing access crisis,” they emphasize in a statement released today.
They argue that these proposals will “create a wave of confidence, stimulating the rental housing supply whether by increasing the stock of existing and/or vacant properties or through new construction for rent”.
The proposals from the signatory associations include the creation of a “stable legal regime for rentals that can be approved with maximum possible consensus in parliament,” strengthening regulatory predictability through the “rapid publication of ancillary decrees,” and the establishment of a Rental Market Monitoring Commission with relevant partners “to monitor and evaluate housing policies”.
Contractual freedom in setting terms (both initial and renewal) in rentals is another measure advocated, as is the possibility for parties to determine the number of advance rents, security deposits, and rent values, along with the creation of a flexible rental regime from three to 11 months, “encompassing new forms of living such as co-living”.
Also proposed is the enhancement of the role of the Electronic Platform for Rental and Landlord Services, to reduce “excessive court dependency and establish maximum procedural time limits,” making all processes “swifter and more efficient”.
The associations also advocate the end of frozen rents, through the “definitive conclusion of the transition for pre-1990 contracts, replacing the social role of property owners with the state,” the allocation of subsidies to tenants (in coordination with the Social Security Institute), and the subsequent end of current supports to landlords.
Another claimed measure is promoting “affordable and public” rental through a public housing construction program in partnership with the national construction industry, along with reduced IRS and IRC rates for rentals, applicable to “the majority of the Portuguese middle class”.
Tax incentives for the construction of housing dedicated to rental (exemption from IMT, IMI, IRC, IRS, and reduced VAT), deductible rental insurance policies, and the creation of a public rental guarantee for young people and families in housing need are also proposed by the signatory associations.
For AICCOPN, ALP, APEMIP, APFIPP, and APPII, these measures are “fundamental to establishing a rental market under conditions of confidence, ensuring a broad market and an effective solution for millions of Portuguese families”.
