Lisbon Landlords Identify Path to Solving Student Housing Crisis, Demand Tax Incentives and State Guarantees
A comprehensive survey released by the Lisbon Property Owners' Association (ALP) this week has detailed a clear set of conditions under which landlords would be willing to significantly increase the availability of housing for students in the capital. The findings suggest that a combination of fiscal incentives and state-backed guarantees could unlock a substantial portion of the private rental market to alleviate the city's pressing student accommodation shortage. The survey, which gathered responses from its 10,000 members, indicates a clear readiness among property owners to contribute to a solution, provided the economic conditions are made more favorable and secure.
The primary motivation for landlords is unequivocally financial, with 87% of those surveyed stating that tax benefits in both IRS (personal income tax) and IMI (municipal property tax) would be the most powerful incentive to offer their properties to students. This highlights the perceived lack of profitability in the current student rental market when compared to other rental modalities. The ALP has long argued that the tax burden on rental income discourages many owners from making their properties available, and this data provides a strong mandate for legislative review. A secondary but significant driver would be the establishment of a public guarantee system, with 42% of respondents indicating that a state-backed insurance against rental defaults would be an effective measure to stimulate supply. This points to a deep-seated concern among owners about the financial risks associated with student tenants, such as potential non-payment or property damage.
In a statement accompanying the report, ALP President Luís Menezes Leitão asserted that the responsibility now lies with the government to create a framework that encourages private sector participation. “Portugal has only about 15,000 public beds for a universe of half a million students who attend higher education. It is evident that, in the face of this reality, private owners play an essential role in the provision of student housing,” he stated. “Valuing and supporting the contribution of these owners is, therefore, an indispensable condition for guaranteeing study opportunities for all young people.” The association is proposing a partnership model where landlords who adhere to certain standards are rewarded. Nearly two-thirds (64.4%) of those surveyed showed a willingness to comply with minimum habitability requirements, adopt standardized contracts, and provide basic furnishings if it would allow them to access institutional programs with tax benefits. This indicates a potential for a formalized, quality-controlled student housing sector managed through public-private collaboration.
Furthermore, the survey explored the idea of a voluntary certification system for student landlords, which could be validated by universities, municipalities, or independent bodies. Almost half of the respondents (49%) were not opposed to such a system if it translated into tangible fiscal advantages, suggesting an openness to greater regulation in exchange for profitability and security. The ALP also put forward a proposal to amend the law regarding security deposits, which are currently limited in value. The association argues that allowing for a larger deposit would provide a more realistic financial cushion against potential damages or unpaid bills, thereby reducing the perceived risk for landlords and encouraging more to enter the market. The findings present a clear roadmap for policymakers, outlining specific, data-backed measures that could be implemented to address the student housing deficit. The real estate market is now watching closely to see how the government will respond to these proposals, as any new legislation in this area could significantly alter the landscape for buy-to-let investors in Lisbon and other major university cities across Portugal.
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