Latest news and stories about housing policy in europe in Portugal for expats and residents.
Former Lisbon Mayor João Soares highlights the severe housing crisis in Portugal, where declining construction since 2011, shifting demographics, and past austerity have created an acute supply deficit. Experts and commentators debate solutions ranging from a national home-building strategy to mobilising vacant properties amid rising political friction.
An analysis of potential housing policy shifts following new proposals from the European Commission.
The European Commission has introduced the Affordable Housing Act, a framework designed to provide member states with legal tools and flexibility to address housing shortages, short-term rentals, and vacant properties without mandating specific national policies.
The Council of the EU stated in a press release that member states have committed to 'preventing and combating homelessness and housing exclusion,' although the proposals are non-binding.
The measures set out in the housing decrees approved by the government of Pedro Sánchez are impacting the supply of residential rentals in Spain. According to Expansión, 4,235 homes were removed from the market or diverted to other modalities in just ten days. The data cited by the Spanish newspaper comes from a survey by the Federation...
The Affordable Housing Act will restrict the freedom to provide services and the right to private property. There are alternatives to these restrictions.
The European Commission is moving forward with the 'Affordable Housing Act'. The proposal opens the door to tougher measures to curb short-term rentals and vacant properties. In an interview with Expresso, the Commissioner for Housing acknowledges that it does not solve the entire problem, but believes it can help lower prices and even combat speculation.
The European Parliament is voting this Tuesday, the 28th, on its position regarding the long-term European Union (EU) budget for 2028-2034, demanding a 10% increase over the European Commission's proposal to support community priorities. The interim report outlines the assembly's negotiating position, focusing on affordable housing access through EU funds without cutting traditional agriculture and cohesion policies. The Parliament proposes 1.27% of gross national income in national contributions, compared to the Commission's 1.15%. The total proposed Multiannual Financial Framework (MFF) is approximately 2.014 trillion euros. The Commission has proposed that Portugal receive 33.5 billion euros under this new budget. The European Parliament has also given final approval to the 2026 EU budget.
The government official explained that the European legal framework “only allows for a reduced VAT rate on construction within the scope of social housing policies.”
The European Parliament also advocates for “measures that allow young people to access housing credit,” such as reduced transaction fees, IMT exemption for the purchase of a first home, or the granting of subsidised loans.
