Lisbon Socialist Party Proposes Permanent Ban on New Short-Term Rental Registrations
The tourism authority and local government of Lisbon are at the center of a new political maneuver regarding short-term rentals. On Tuesday, Socialist Party (PS) councilors in the Lisbon Municipal Council announced their intention to file a formal proposal to maintain the current suspension on registering new 'Alojamento Local' (AL) establishments. This move aims to make the temporary freeze, which has been in place to curb the proliferation of tourist-focused rentals, a permanent feature of the city's housing policy. The announcement signals a firm political stance on prioritizing residential housing over tourism expansion in a city grappling with an affordability crisis. The PS councilors argue that this is a necessary step to protect the city's social fabric and housing stock.
The specific regulations for short-term rental properties are at the heart of this proposal. In their public statement, councilors Pedro Cegonho, Pedro Anastácio, and Cátia Rosas framed housing as 'the city's biggest challenge.' They contend that the combined pressure from tourism and real estate speculation 'has made rents unaffordable for the middle class, promoting gentrification and reducing the stock of permanent housing.' The ultimate goal of their proposal is to make the current 'precautionary suspension' of new AL registrations a 'definitive' one. This would effectively cap the number of short-term rental units in the city at its current level, fundamentally altering the market for investors focused on tourism.
The licensing requirements and application processes would be directly impacted. The PS is leveraging the ongoing debate around the amendment to the Municipal Regulation of Local Accommodation (RMAL). During the public consultation for this amendment, which concluded on 15 April, the Socialist Party advocated for establishing a 'city ratio of 5%.' This would limit the number of AL properties to 5% of the total housing units, a measure they believe is essential for 'defending Lisbon residents and the identity of the neighborhoods.' The proposal also calls for prioritizing affordable housing and supporting local commerce, which are often displaced by tourism-oriented businesses. Property owner compliance obligations would become much stricter under such a regime.
This municipal-level initiative is a direct reaction to recent changes at the national level. The councilors' proposal was spurred by a decision from the central government in October 2024, which removed 'fundamental instruments of municipal regulation.' These tools included the ability for municipalities to review existing licenses and to impose suspensions in areas officially designated as having a housing shortage. The PS councilors argue that the central government's decision 'opens the way for a new 'race' for local accommodation, aggravating the housing crisis in Lisbon.' They also issued a sharp critique of the current city administration, accusing it of failing to manage Lisbon's structural challenges and protect residents' quality of life.
The neighborhood impact and community considerations are central to the Socialists' argument. 'Lisbon cannot be a hostage to decisions that place tourism above the right to housing,' the statement concluded. They are urging the City Council to act decisively to 'ensure that the housing stock is not continually diverted to tourist uses, to the detriment of Lisbon families.' The enforcement procedures and potential penalties for violations under a new, stricter RMAL would be a key part of future discussions. For now, the market supply and demand dynamics are in a state of uncertainty as stakeholders await the outcome of this political and regulatory battle. Discover rental property opportunities and regulations at realestate-lisbon.com.
