Socialist Party Outlines Sweeping Housing Policy Proposals to Portuguese Government
The leader of Portugal's Socialist Party (PS), José Luís Carneiro, has sent a letter to Prime Minister Luís Montenegro outlining a comprehensive strategy to address the country's housing crisis. The proposals, reported by the newspaper Público, advocate for increased partnerships between the state, municipalities, and the private sector, with a strong emphasis on innovative construction and enhanced funding for affordable housing programs. The initiative represents a significant political maneuver, placing housing at the forefront of the national agenda.
Carneiro's eight-point plan calls for the creation of a new industrial cluster for construction to revitalize a sector still recovering from the effects of the crisis 15 years ago. A central element of this is a push towards modular and industrialized building methods, which the party believes can provide faster and more cost-effective housing solutions. The plan underscores the importance of local governments, arguing that municipalities are best positioned to understand and address local housing needs and should be equipped with the necessary financial and technical resources to act effectively.
The letter proposes a substantial reinforcement of funding for several established housing support programs. These include the Programa de Apoio ao Acesso à Habitação (1.º Direito), the youth rental scheme Porta 65, the Programa de Arrendamento Acessível, and the Programa de Construção a Custos Controlados. In a move to support middle-income families, the PS also suggests the creation of a new National Program for Affordable Housing Construction, aimed at expanding the public rental market through the rehabilitation, construction, and acquisition of properties.
The proposals also address emergency situations and specific demographics. Carneiro suggests expanding the Bolsa Nacional de Alojamento Urgente (National Emergency Housing Stock), established in 2021, to better respond to crises like the Talude Militar incident in Loures, Lisbon. He envisions a system where modular housing could be rapidly deployed. Student housing is also highlighted as a priority, with a call for a national program developed in collaboration with higher education institutions to support students with limited resources.
Institutional reform is another key aspect of the plan. The PS is calling for an overhaul of the Instituto de Habitação e Reabilitação Urbana (IHRU) to reduce bureaucracy and a faster legislative process for the new Código da Construção (Construction Code). According to a PS spokesperson, these measures are intended to create long-term predictability for both housing policy and the construction industry, thereby encouraging sustained investment.
The Socialist Party intends to formally submit these proposals to parliament in the near future, either as standalone bills or as amendments to the 2026 State Budget. This action ensures that housing policy will be a central topic of political debate in the coming months, signaling potential shifts in Portugal's approach to its housing challenges. The focus on construction innovation, public housing, and regulatory reform could have significant implications for the real estate market across the country, including in key investment areas like Lisbon.
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