Portugal hopes to bring 300,000 homes onto rental market

Infrastructure and Housing Minister Miguel Pinto Luz says thousands of homes are currently being kept out of the long-term rental market, often because landlords are worried about the risks involved in renting them out.

These include second homes and properties currently being used for short-term tourist accommodation.

Speaking to Observador radio, the minister explained that the government’s aim is to restore confidence among property owners, making them more willing to rent out their homes.

He acknowledged that the full target of 300,000 properties might not be reached, but believes some could become available within the coming months or during 2027.

The government’s proposals include making it easier for landlords to evict tenants who fail to meet their contractual obligations, removing limits on security deposits and advance rent payments, and changing the rules governing rental contracts signed before 1990.

The measures are intended to encourage more property owners to enter the rental market, although some of the proposed changes are still being debated in Parliament.

The Socialist Party has criticised aspects of the reforms, arguing that they could weaken protections for tenants.

Pinto Luz has defended the proposals, saying the existing legislation has failed to prevent rents and house prices from continuing to rise.

The minister also pointed to increased government support for housing, saying annual rental assistance has risen from around €50 million to more than €300 million.

According to figures he presented, government measures have also helped approximately 130,000 young people purchase their first homes over the past two years.

The government is hoping to deliver 40,000 homes by the end of 2026 and another 50,000 in 2027.

For people struggling to find somewhere affordable to live, the big question is whether these changes will actually persuade landlords to make their properties available, and whether the additional homes will be within reach of those who need them.

For now, the 300,000 figure remains a government ambition rather than a guaranteed increase in housing supply.