Lisbon Tenants' Association Reports Crisis in Rental Market
The rental market in Portugal requires immediate regulation and fiscal oversight to restore confidence among housing seekers, according to António Machado, the secretary-general of the Lisbon Tenants' Association (AIL). In a recent statement, Machado criticized what he described as a persistent lack of action from successive governments to address structural problems in the housing sector. The AIL, which represents approximately six thousand tenants, highlighted alarming trends based on data from the Ministry of Justice, which showed an average of 130 official eviction proceedings per month in the first half of the year.
Machado clarified that these official statistics do not paint a complete picture of the situation. He stated that a significant number of displacements occur through the non-renewal of rental contracts, which are not legally classified as evictions but have the same effect. "We have an eviction problem, not so much due to non-payment, but rather due to the non-renewal of contracts, which don't count in the eviction statistics but are effectively evictions," he explained. He also pointed to a "persecution of the elderly" as another form of displacement, contributing to thousands of unrecorded cases.
The market context for these issues includes a sharp increase in property prices and rents. According to Machado, house prices rose by an average of 18% in the first six months of the year, with rents increasing by a minimum of 10%. He described prices in some areas as "pornographic" relative to the average national income. He argued that this trend is exacerbated by a lack of available housing supply and empty properties that are not being placed on the market.
The AIL has long advocated for a comprehensive regulatory framework for the rental market. "We have been advocating for a long time that it is necessary to regulate, register, and inspect the market like any other market," Machado said. "But the Government doesn't want to do any of this, neither the previous one did, and the next one probably doesn't want to either."
The discussion also touched upon the role of foreign buyers in the market. Machado noted that while foreign investment is not inherently a problem, the associated tax benefits are a point of contention. "Foreigners can buy as many houses as they want, but it is completely absurd for them to have tax benefits that others do not," he asserted, pointing out the disparity with Portuguese citizens who do not receive similar advantages.
The association anticipates that without significant intervention, the current trends of high rents and tenant displacement will continue unabated in the coming months. The call for action is directed at the government to implement what the AIL considers essential structural reforms to ensure a more stable and accessible housing market for all residents.
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