We already wrote that in Portugal they have a program to help families to pay rent, and it turned out that this is not the only help for tenants. On July 6, a law was passed prohibiting rent increases for «old» lease agreements. Details.

As part of the Mais Habitaç (More Housing) program, the Portuguese Parliament approved a measure on 6 July to prevent landlords from raising prices for “old” rental properties.

Such restrictions will not affect everyone. The initial cost of the new rental agreements for houses that have been on the market for the past five years will not exceed the cost of the last rent in the previous contract.

It should be noted, however, that the effect of inflation has been taken into account, and a 2% increase can be applied to new leases in line with inflation.
For lease contracts that have not been updated in the last five years, automatic upgrade factors for the previous three years may be added. In 2023, the figure was 5.43 per cent.

Earlier this year, Portuguese Prime Minister Antonio Costa said that this step is a «restrictive measure of the evolution of rent», but, however, is considered «reasonable» and «necessary» to stop the creation of the Portuguese system, which does not allow its residents to afford rent, as the «market already has a level of rent much higher than families’ incomes».

This measure applies only to contracts that have been leased over the past five years. There are currently no restrictions on the rental of real estate entering the rental market.

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If the rental property undergoes «deep repair or restoration works, duly certified by the city council», «the cost in relation to the corresponding expenses, which are borne by the lessor, up to an annual limit of 15%».

This means that the price of property rentals that have undergone the necessary restoration or reconstruction may increase by 15 per cent to cover these costs and to match the new rental price of the property.

This measure received a green light on Thursday, July 6, with positive votes from the Socialist Party (PS), abstaining from the Left Bloc (BE) and the Portuguese Communist Party (PCP), and votes “against” from the Social Democratic Party (PSD), Chega (CH) and the Liberal Initiative (IL).