Landlords Demand Legislative Stability to Increase Housing Supply
A majority of landlords consider the predictability of rental laws to be the determining factor in their decisions, ranking it far ahead of net profitability or taxation, according to the latest edition of the Landlord Confidence Barometer promoted by the Lisbon Landlords Association (ALP). The report indicates that legislative stability is the factor that will most heavily influence landlords' decisions on whether to place their properties on the rental market.
The policy objectives of the current government have been aimed at increasing the housing supply, but this study suggests a disconnect with property owners. In the survey, a significant majority (57.8%) of respondents stated that the predictability of rental laws is decisive for their decisions, compared to just 15% for net profitability and 13.2% for taxation. The study, which involved 210 responses, with 99% from participants with leased properties, reveals a sector marked by distrust of the housing policies announced by the government.
A segment of 41% of landlords affirmed that the "fiscal shock" measures have not altered their lack of confidence in the market, while 9.4% reported feeling even more apprehensive. Only 12.4% received the measures positively. This lack of confidence directly impacts the intention to increase the housing supply. More than half (55%) stated that the government's measures will not lead them to put more houses on the market, and 29.4% indicated they "might" do so, pending further details on the proposals.
"The Government needs to understand that predictability and legislative stability are the true incentive for renting," stated Luís Menezes Leitão, President of ALP. "Constantly changing the rules and maintaining measures that are highly damaging to the rights of landlords undermines their confidence and drives away investment in housing." This is a critical consideration for those exploring the market, including clients of international real estate agents.
The profile of the survey participants shows that the majority are small landlords: 60.1% own up to five properties, with the most representative group being those who own between two and five leased properties (40.4%). This data confirms that the Portuguese rental market is primarily based on small private investors. There is, however, a certainty among the respondents: a majority (52.4%) do not believe that the new policies will create the "housing shock" desired by the Executive.
Regarding fiscal policy, the reduction of IRS and IRC tax rates on rental income from the current 25% to 10% is seen as fair and necessary by 46.6% of landlords. This specific measure is a point of interest for those seeking advice from property tax accountants.
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Prudence continues to characterize the behavior of Portuguese landlords. In 2026, the vast majority (69.3%) plan to update their rent values only by the legal coefficient of 2.24%. For ALP, these results demonstrate that confidence and stability are the essential conditions for revitalizing the market.
"The priority to reverse the current severe housing access crisis must be to rebuild the confidence of landlords," emphasized Luís Menezes Leitão. "The country needs a housing policy with clear, lasting, and coherent rules. Only then will it be possible to guarantee more supply in the market and stable relationships between landlords and tenants."
The Landlord Barometer is an initiative by ALP designed to regularly measure the sentiment and expectations of Portuguese landlords regarding the rental market and public housing policies. The data for this edition was collected from 210 members between October 3 and 17. The ongoing debate around these issues is a central theme in our Regulatory and Legal Frameworks blog.
The political opposition has also weighed in, arguing that the government's proposals do not go far enough to address the structural issues in the housing market. The debate is expected to continue in parliament as the government moves forward with its legislative agenda.
Understand policy impacts on your Portugal property plans at realestate-lisbon.com.