Government to publish Housing Strategy measures ‘in the coming days’

Following the Council of Ministers meeting, the government said it would publish the Housing Strategy “in the coming days”, ensuring it would subject it to “preliminary parliamentary dialogue”.

According to a statement from the Council of Ministers, the government discussed and adopted the Housing Strategy at a meeting this Thursday.

The government adds that without implementation, the housing strategy includes “a program of reform to address the serious crisis in the sector, which particularly affects young people, vulnerable groups and the middle class.”

The program includes “innovative measures to promote public, private and cooperative supply” while providing “demand support,” especially for youth, vulnerable populations and the middle class, the executive said.

In the statement, the government emphasizes that the measures it is taking will be aimed at “correcting serious errors and omissions in government policy in recent years.”

The government program, presented on April 10, aimed to reverse measures approved by the previous socialist executive that the new government (SDP-CDS/PP) considers “wrong,” including forced renting, rent freezes and “penalty measures.” measures” for local placement.

In the program, the government undertakes to “immediately” abolish the emergency contribution for local accommodation and the expiration of licenses until the Mais Habitação program approved by the PS and which was converted into the current Law No. 56/2023. from October 7.

Also according to the Government Program, housing policy will be based on five directions, the first of which will focus on increasing supply (private, public and cooperative), which proposes a public-public partnership program for “large-scale construction and rehabilitation”. , be it a hostel or 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 universally punishing owners,” criticizing the “ideological focus” of the PS “on restrictive measures that limit and contradict the right to property” and that “leave the state alone and you will not be able to guarantee stimulation 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).

At the same time, “until the market stabilizes,” it will maintain “dynamic income subsidies” that will benefit struggling families.

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 reversal of the “wrong measures” of the Mais Habitação program is an indicator of the fifth axis of “reforms to resolve the crisis.”