Government prohibits new Local Accommodation licenses and limits rent increases in new contracts

Exception will be accommodation in rural areas of the interior

Photo: Alexandros Michailidis/Shutterstock

The issuance of new local accommodation licenses "will be prohibited", with the exception of rural accommodation in municipalities in the interior of the country, where they can boost the local economy, announced the Prime Minister today.

António Costa was speaking at the end of the Council of Ministers, today dedicated to housing, in which the More Housing Program was approved.

The Prime Minister also announced that the current local accommodation licenses "will be subject to reassessment in 2030" and, thereafter, periodically, every five years.

This measure is part of the regime of “strong incentives for housing fractions that are currently dedicated to local accommodation to return to the housing market”, justified António Costa.

On the other hand, the Prime Minister also announced that the value of rents for new lease contracts will now have criteria that limit their increase.

"For new contracts, the new income must result from the sum of the last income practiced with the updates that could have been made during the contract period", explained the prime minister.

In addition to these two criteria, the value of the new rent may also take into account the 2% inflation target defined by the European Central Bank (ECB).

The Council of Ministers approved today a new legislative package on housing.

The holding of a Council of Ministers dedicated to housing was announced in January by the Prime Minister, in an interview with RTP, with the Government assuming affordable housing as one of the greatest challenges of today.


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