Rental price growth for new leases has been 49% over five years

The book published by the Institute + Liberty, which aims to debunk myths about the housing crisis, will be presented this Thursday by former minister Pedro Siza Vieira at the Cantina Velha auditorium of the University of Lisbon at 18:30.

According to the authors of the book, between 2017 and 2022, the average rental value increased by 49% in new contracts, and, as in the case of sales values, the increase was general for the whole country, but more concentrated in the metropolitan areas of Lisbon, Porto and the Algarve. In other words, the increase was much greater for new tenants.

It is also noted that between 2011 and 2022, the average rental value increased by 26% in Portugal, 10% above the European Union (EU) average. "Percentage''announcements of new leases and on the reality of existing contracts'.

"This dichotomy is indicative of the main problem of the rental market in Portugal: the landlord does not know exactly what will happen with legislation in the future. Past experience shows that the Portuguese state does not hesitate to freeze rents or to pass legislation that prohibits the eviction of tenants even if they do not pay," they note.

And they note that this risk associated with "slow justice" leads to homes being put on the market with higher rents.

Accelerating and simplifying licensing processes is another suggested measure, as well as qualifying and retaining labor in construction, reducing the tax burden, especially the component that affects construction costs, and utilizing the state's idle assets. In addition, the authors of the book believe that unnecessary regulations that only increase construction costs and promote corruption should be simplified and eliminated, and decentralization should be encouraged.

The authors of the book are Carlos Guimaraes Pinto, founder of the Institute + Liberty and current IL party deputy, Andre Pinhão Lucas, executive director, Juliano Ventura and''Filipa Osoriou. Published by Instituto Mais Liberdade and Alêtheia Editores, the book goes on sale Thursday in bookstores, but is already available for purchase online at the institute's page.