The government will replace the landlords, in case of non-compliance by the tenant for a period of three months, guaranteeing the payment of the rent to the landlord and the subsequent eviction – if applicable – of the tenant.
This is one of the measures announced by the Prime Minister this afternoon, at the end of a Council of Ministers devoted exclusively to housing. António Costa stressed that the “rent default rate is extremely small”, but that this is “a fear that lives in society” and in the market, arguing that “after three months of non-compliance, the state replaces the tenant in the payment of rents” and will be responsible for “collecting the amounts due”. Afterwards, you need to find out the reasons for the non-compliance: if they are related to a “socially acceptable” reason, the tenant can be supported or even moved.
In the context of the third axis of the five included in the “More housing” program, which aims to put more houses on the market, António Costa also argued that the state “proposes renting houses to owners” within normal prices, for a period of five years, provided that the right to sublease is granted” and advance payment of the rents for the following year.
Heavy hand for local accommodation
As part of the package of housing measures, the cabinet will also prohibit the issuance of new local housing permits, a generalized measure with the exception of a set of municipalities in the interior.
Flanked by Housing Minister Marina Gonçalves and Finance Minister Fernando Medina, António Costa also announced that current permits will be reviewed in 2030 and every five years thereafter. The local housing sector will also be subject to an extraordinary contribution that will flow back to the IHRU (Institute of Housing and Urban Rehabilitation) to support housing policies.
On the other hand, local property owners who transfer real estate to traditional leasing will benefit from a zero tax on real estate income until 2030.
Bonus on credit terms and subsidy on rents
The government also continues to support housing loans, given rising interest rates. Loans up to EUR 200,000 are eligible for the new support, from households taxed up to the sixth rung of the IRS (taxable income up to EUR 38,632). In these situations, the state will “subsidize 50% of the value that exceeds the maximum value it was subjected to in the stress test conducted when the loan was taken out,” said António Costa. That is to say, if the benefit of these households exceeds the maximum amount set in the stress tests, the State will grant a bonus of 50% of the amount above the ceiling set in those same tests.
In the same plan, but in proportion to the rents, the possibility is created of a monthly contribution of up to 200 euros, when tenants have an “effort rate greater than 35%” and the rental of the property falls within the values set by the IHRU have been determined for the relevant municipality and for households with an income up to the sixth IRS scale (taxable income up to 38,632 euros).
Rent increases for new contracts are limited
During a press conference in Palácio da Ajuda, António Costa defended that it is time to create mechanisms to limit the increase in rents in new contracts. “The new rent should be the result of the sum of the last rent practiced with the updates that could have been made during the contract period,” said the prime minister.
End of golden visas
As already announced, the end of the golden visa is coming about, a measure to “counter real estate speculation”, in the words of the leader of the Executive. The measure applies to all golden visa models, which remain active only for renewals under certain conditions.
According to Finance Minister Fernando Medina, the “More Housing” program will cost the state “900 million euros, excluding the cost of renting and works to be carried out, and including credit lines”.
Source: DN
