Portugal Moves to Deregulate Rental Market and Speed Up Evictions
El Salto
- The Portuguese parliament has approved a legislative authorization allowing Prime Minister Luís Montenegro's government to overhaul rental laws via decree.
- The reforms aim to boost housing supply by granting landlords more power, though critics warn they will exacerbate housing instability.
- Activist groups are protesting the measures, arguing they favor speculation over the rights of tenants.
Key Legislative Changes
- Simplified Evictions: The grace period for unpaid rent is reduced from three to two months. Furthermore, eviction processes will now proceed based on an initial judicial decision, eliminating subsequent procedural phases.
- Increased Landlord Control: Property owners gain greater autonomy in setting rent prices and contract durations. Limitations on rent increases for new contracts are being removed.
- Deposit and Renewal Shifts: Landlords may now require up to three months of rent as a deposit. Additionally, mandatory three-year automatic renewal periods are being phased out to allow for annual contract reviews.
Market Context and Opposition
- Escalating Costs: Official data shows housing prices rose by nearly 35% in the first half of 2026, with costs in Lisbon approaching 20 euros per square meter.
- Civil Society Backlash: Over 100 organizations under the 'Casa Para Viver' coalition are protesting, demanding rent controls, an end to mass evictions, and increased public housing investment.
- Government Rationale: The government argues that by reducing risks for property owners, it will encourage more landlords to list their properties, ultimately moderating prices through increased supply.
- Criticisms: Activists argue that the reform is an offensive against tenants and that previous policies failed to address the 100% surge in rent prices and 180% increase in property values over the last decade.
- Mitigation Measures: The government has promised an Emergency Housing Fund to support vulnerable families, though critics dismiss the move as insufficient.