Associations join forces and propose measures to increase the supply of rental properties.

Several associations linked to the real estate sector presented the Ministry of Infrastructure and Housing with a common position aimed at contributing to the ongoing legislative process on housing and rentals, pointing to a path of consensus to overcome the housing crisis.

This is an unprecedented position that brings together the National Association of Civil Construction and Public Works Industries (AICCOPN), the Lisbon Association of Property Owners (ALP), the Association of Professionals and Companies of Real Estate Mediation in Portugal (APEMIP), the Portuguese Association of Real Estate Developers and Investors (APPII) and the Portuguese Association of Investment Funds, Pensions and Assets (APFIPP).

According to the entities, the "primary objective of the proposed measures is to create a functional and dignified rental market, with sufficient size and that constitutes a real and effective response to the current housing access crisis," arguing that these proposals "will create a wave of confidence, stimulating the supply of housing for rent, both through the expansion of the stock of existing and/or vacant properties, and through new construction for rent."

And they don't hesitate: "The right to housing is a constitutional principle that cannot be guaranteed at the cost of historical imbalances, in which some Portuguese end up assuming the role of the State, financing other Portuguese in a discretionary and arbitrary manner."

On the table are measures such as legal security for rentals, where the idea is to establish a stable legal framework for rentals that can be approved with the maximum possible consensus in Parliament. “Strengthening regulatory predictability with the rapid publication of supplementary decrees. Creating a Rental Market Monitoring Commission with relevant partners, for the monitoring and evaluation of housing policies.”

On the other hand, they advocate for balance and contractual freedom in leasing with the aim of "ensuring contractual balance, giving the parties freedom in defining both initial and renewal terms," ​​allowing the parties to set the number of advance rents and security deposit amounts, as well as the rent amount.

Another measure involves moving forward with a contract termination regime for breach of contract, aiming to strengthen the role of the Electronic Rental Desk Platform and the landlord, "focusing on reversing the legislative changes introduced by Law No. 56/2023, regarding excessive dependence on the courts, and setting maximum deadlines for the procedural part, making all processes faster and more expeditious, for greater confidence and security for market operators."

The associations are also calling for an end to rent freezes, which involves definitively concluding the transition of contracts prior to 1990, with the State replacing the social role of landlords. "Subsidies to be granted to tenants in coordination with the Social Security Institute and a subsequent end to current support for landlords," they emphasize.

The organizations also advocate for a focus on affordable public housing, in which "the State should robustly resume a public housing construction program in partnership with the national construction industry," as well as establishing reduced personal income tax (IRS) and corporate income tax (IRC) rates for rentals, applicable to the majority of the Portuguese middle class. Another measure involves supporting investment in construction for rental – a tax incentive aimed at building housing dedicated to rental (exemption from property transfer tax (IMT), municipal property tax (IMI), corporate income tax (IRC), personal income tax (IRS), and reduced VAT) – as well as rent insurance and the use of public guarantees with the aim of "incentivizing the market to subscribe to tax-deductible rent insurance and studying the creation of a public rental guarantee, inspired by the French model 'Garantie Visale', to support young people and families in need of housing."