"Affordable Housing" kicks off on the 1st July and will make renting 20% cheaper than the reference price.
Since Lisbon has become one of the hottest touristic spots in Europe, rent prices have been reaching all-time highs over the last year and a half with prices increasing at approximately 10% each trimester. Despite latest records indicating that renting rates are slowing down, renting a house in Lisbon or in Porto still poses quite a challenge to middle-income families or individuals.
For that reason, the Portuguese Government decided to launch a new affordable housing scheme that sets renting prices at a limit of 80% of their reference price. This means that the renting price must be at least 20% below the reference price. The goal is to make life easier for those middle-income families that are currently struggling with their budgets and helping them to have access to adequate housing at an affordable cost.
Should you worry about this affecting your property value? Not really, as adhering to the program is on a voluntary basis. The Government also offers other guarantees, such as special regimes for housing insurance and tax-exemption on rental incomes. The program officially starts on the 1st of July this year.