Deco proposes a limit to rent in the pressure zones. Package of 18 measures

A Deco presented 18 measures to help solve the housing crisis, six of which for the short term, including temporarily limiting the rents of new contracts in the areas of housing pressure for three years.

The proposals were made known to the Government, parliament and the President of the Republic, António José Seguro, with the aim of “making housing fairer, accessible and sustainable in Portugal”, aiming to “protect those who already rent, increase the offer at affordable costs and make public policies more transparent,” says the Portuguese Consumer Protection Association – Deco.

The measures are organised into three implementation horizons: six short-term measures (up to 12 months), nine medium-term measures (between one and four years) and three long-term measures (between five and ten years).

For the short term, Deco considers it desirable to limit rent temporarily in areas where housing pressure is higher, for new contracts, “for three years and having inflation as a reference”.

It also proposes to “strengthen guarantees in leases: complying with the limits on collateral and advance rents, preventing successive contracts that circumvent the rules of renewal and updating and clarify the transitional and room lease”, arguing that “before an eviction for non-payment, there must be notification, deadline for regularisation and compulsory free mediation”.

For the short term suggests the creation of a Income Guarantee Fund, “that pays the landlord up to six months of overdue rents when the tenant is proven unable to pay”, the tenant may repay the fund later for a period of up to 36 months and according to his income.

Another proposal is to “strengthen support for tenants”, extending the extraordinary income support “to those who have an effort rate above 35%, with automatic allocation, and raise the deduction of income in the IRS to 1,000 euros from 2027, with annual inflation rate update”.

The association further recommends that an annual housing report be published and that there be a public panel, per municipality, on the implementation of the First Law and the Recovery and Resilience Plan (PRR).

Deco also suggests that the list of the state’s vacant properties be published, “with the destination and timing of its allocation to accessible leases”, and that tax incentives be revised, “replace the national thresholds unique by regional criteria”.

For the medium term, in particular, it recommends strengthening “the regulation and supervision of the lease, with a status of the professional landlord subject to consumer protection rules, sanctioning powers for the supervision and co-responsibility of digital platforms”.

It also proposes to “mobilize the returned private dwellings, with progressive worsening of the IMI in the pressure zones and a public sub-renting program, and to regulate the local accommodation and the demand for non-residents according to the capacity of each parish”.

The association also proposes “a National Housing Program for 2027-2031 and an Accessible Housing Programming Act, so that public and affordable housing represents 5% of the housing park in 2030” and that they are fixed “binding deadlines for urban licensing”, without reducing requirements.

For the five-to-ten-year horizon, he argues that Portugal sets as an objective “to achieve 10% public, cooperative and non-profit housing by 2036, with a rotating national fund powered by the rents of the park itself”.

A second measure for this period goes through “an active land and land planning policy, with municipal land grants, use of the right of preference and capture of some of the added value of planning”.

Finally, it advocates the creation of a “permanent statistical system on housing and a 10-year regime agreement to ensure continuity of goals, financing and rules, regardless of political cycles”.