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'Portugal to help with rent due to housing crisis'

'Portugal to help with rent due to housing crisis'

'located in the north of the country, where he found the right accommodation. "There was an apartment available that I could rent. This apartment was half the price of the apartment I was planning to rent in the Lisbon region," he recalls.

According to the plan, the state will regulate the cost of new leases, and not only that. Those whose income is around 1,100 euros a month (about R$6,250) and who spend more than 35% of their salary on rent will be eligible for up to 200 euros (about R$1,135) in monthly assistance. "This is a temporary measure that will be in effect for the next five years, a period that we consider desirable in order for the public housing supply and a set of other measures to support affordable rentals to allow''Normalize the rental market so that there is affordable housing for rent,' Portuguese Prime Minister António Costa stressed.

Those who have mortgage financing and fit the same profile - an income of around 1,100 euros and rental costs exceeding 35% of their salary - will receive a monthly aid of 60 euros (around R$340) to pay the fees. In addition, banks will be required to have a fixed mortgage rate. Salaries will not increase with price rises. In Lisbon, protesters took to the streets demanding that salaries be comparable to the cost of living, which increased in the country on March 18, 2023. - Photo: Armando Franca / AP

According to the Portuguese labor ministry, last year more than 50 percent of workers''scattered across the country.

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For example, in 2019, Portugal's capital was already the European city with the highest number of local accommodations per thousand inhabitants, according to Moody'\''s. The apartments that enter the real estate market are often rented to those with more economic power, such as foreign retirees and digital nomads. In addition, there are many unoccupied apartments that are not being put on the market and little new home construction. It should be noted that only 2% of the country's total housing stock is publicly owned, in contrast to 20-30% in Holland. These and other factors lead to a lack of supply and high demand, which drives prices up.

Reflecting the interest rate hike

Bearing in mind that in''With Portugal around 90% of bank loans to buy your own home subject to a variable interest rate regime, rising mortgage interest rates are having a big impact - many families are seeing their property payments double in the last year. Brazilian real estate consultant Ana Paula Oliveira has been working in the Portuguese market for six years and has observed the difficulties of those trying to buy their own homes in these difficult and uncertain times. "We do a '\''bank viability check'\''for a client today, and in 30 days we don't know if they have the financial capacity [to buy a property]. If we don't find a property in that period of time, we don't know if he'll still have one in 30 days' time'financial ability to buy the same property,' she said in an interview with RFI.

Local housing and 'forced' renting

To increase the supply of housing, the package also stipulates that the Portuguese state can rent and sublet vacant houses and apartments, committing to pay rent if tenants fail to fulfill their obligations. One proposal also suspends the issuance of new local accommodation licenses, and existing licenses will be reviewed in 2030. Rural placements in the hinterland are excluded from the measure.

"Golden Visas "

In an effort to crack down on real estate speculation, the plan also stops the issuance of new "golden visas," the name given'

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