Government vows to reverse ‘wrong measures’ in More Housing program

On Wednesday, the government confirmed it would scrap Mais Habitação measures it considers “wrong”, including forced tenancies, rent freezes and “punitive measures” for local housing.

In the Program XXIV of the Constitutional Government, presented this Wednesday to the Assembly of the Republic, what was promised by the Democratic Alliance (SDP/CDU-PP/PPM) when it ran in the last legislative elections in March has been fulfilled. and there is supposed to be a “determination” to reverse some of the decisions of the previous socialist executive, embodied in Law No. 56/2023, approved on October 6 last year.

Regarding local placements, the government program states that extraordinary contributions to these activities and the expiration of licenses before the start of the Mais Habitação program will be “immediately” cancelled.

The Executive also adds that it will consider “other legal restrictions” on local housing “deemed disproportionate,” without mentioning what it will do about suspending the registration of new local housing outside low-density areas.

The previous socialist chief executive had approved the forced rental of houses abandoned for more than two years, a measure that the PSD/CDS-PP government would reverse, opposing the “almost automatic introduction to the market of empty or underutilized properties and public lands.”

At the same time, the government (PSD/CDS-PP) is lifting the rent freeze and replacing it with “subsidies for vulnerable tenants”, justifying it as follows: “We do not believe that the answer to the housing crisis involves administrative price controls through an income freeze.” or limiting it to very strict limits, ignoring the rules in force for everyone.”

According to the document, housing policy will be built in five directions, the first of which is focused on increasing supply (private, public and cooperative), which proposes a public-private partnership program for “large-scale construction and rehabilitation of both hostel and student housing.”

The second axis is based on the observation of the need to promote “stability and trust” in the rental market and includes measures such as “reviewing and expediting mechanisms for the rapid resolution of disputes in the event of non-compliance with contracts.”

Thirdly, the government continues to support “vulnerable tenants”, recognizing that “the commitment to increasing the supply of private and public housing takes time.”

However, it is proposed to do this “by subsidizing tenants in need, rather than by universally punishing owners,” criticizing the “ideological focus of the PS on restrictive measures that limit and contradict the right to property, which some others object to, which limit private economic initiative,” and which “leave the state alone and cannot guarantee stimulation of the housing market.”

So the government will replace “administrative price caps” with “government subsidies for tenants in situations of vulnerability/real need (measured by level of effort and level of income)” and provide reimbursement “starting with families with the highest rates of” effort.” .

The Government justifies government policies that “help” “many existing and potential tenants in great difficulty” during the current “period of market imbalance” by explaining that it intends to expand the range of contracts covered by the subsidy (currently limited). until March 15, 2023, a year incorrectly listed in the program as 2022).

At the same time, “until the market stabilizes,” it will maintain a “dynamic income subsidy” that reimburses families who make a greater effort, emphasizing that the IRS will audit contracts frequently.

The fourth axis consists of supporting young people to buy their first home through tax relief and a government guarantee allowing the bank to finance the entire cost.

The abolition of the “wrong measures” of the Mais Habitação program, approved in October with only positive votes from the PS, is an indicator of the fifth axis of “reforms to resolve the crisis”.

The program of the XXIV Constitutional Government was presented this Wednesday by the Minister of Parliamentary Affairs, Pedro Duarte, to the President of the Assembly of the Republic, José Pedro Aguiar-Branco.

The document was approved this Wednesday by the Council of Ministers and will be discussed at the plenary meeting of the Assembly of the Republic on Thursday and Friday.

The government, led by Luis Montenegro, has the support of 80 deputies – 78 from the PSD and two from the SDS-PP – out of 230, in a parliament in which the PS has 78 seats, Chega – 50, the Liberal Initiative – eight, BU. five, PCP four, Livre also four and PAN one.