European Commission issues alert: Portugal struggles to address housing predicament
Portugal's Housing Woes: A Call to Action From the European Commission
In a no-holds-barred report published this week, the European Commission has sounded the alarm on Portugal's persistent housing crisis. They've laid out a plan of action chock-full of concrete measures to tackle the issue head-on. Here's a lowdown on their proposals, which range from rent control and curbing short-term rentals to utilizing vacant properties, both public and private.
According to Jornal Público, the report points out that over the last decade, housing prices in Portugal have skyrocketed, whether we're talking about sales or rentals. To make matters worse, housing remains out of reach for young folks, vulnerable groups, and even those with low to medium incomes.
One of the Commission's proposed solutions, an increase in public housing, was part of the government's package under António Costa, but progress has been lackluster, to say the least. In this situation, the Commission urges Portugal to think long and hard about enacting measures to curb the rapid escalation of rental prices.
The Commission also emphasizes the need for a comprehensive housing strategy that puts the homeless population first.
Now, let's delve a bit deeper into what those measures might look like. Though specific strategies for rent control, short-term rental limits, and vacant property utilization haven't been spelled out in the Commission's report, they've highlighted the importance of increasing housing supply and affordability across Europe.
As part of this broader strategy, the Commission has established a new working group to develop and implement a European plan for affordable housing. This initiative aims to coordinate policies that unlock public and private investment in sustainable and affordable housing across Europe, which could undoubtedly support Portugal's efforts.
Another noteworthy initiative is the European Investment Bank's (EIB) plan to invest around €10 billion over two years to support housing projects, including new construction, renovation, and energy efficiency improvements. While not specific to Portugal, this investment could help boost housing development in the country.
The Commission also suggests using Public-Private Partnerships (PPPs) to address the housing crisis, stressing that these partnerships must prioritize affordability and public interest. This approach could help increase the supply of affordable housing in Portugal.
Encouraging the sustainable renovation of existing homes is another recommendation, which could involve amending EU legislation to make financing for such upgrades more accessible.
Lastly, the EU's focus on increasing housing supply and affordability could include strategies to regulate rentals and encourage longer-term tenancies.
Portugal may need to adapt these European initiatives or develop additional national policies to implement a comprehensive strategy addressing rent control, short-term rental limits, vacant property utilization, and housing for the homeless. Local and regional governments often have specific regulations on short-term rentals and vacant properties, so those measures might be more effectively addressed at the national or local level.
One Portugal-specific measure that's already in place is an exemption for young people purchasing their first home, which could help make homeownership more attainable for younger generations. So while there's no silver bullet, this report marks the first step in what could be a long overdue change for Portugal's housing crisis. It's time to get this show on the road!
The European Commission's proposed European plan for affordable housing emphasizes the importance of increasing housing supply and affordability, which could support Portugal's efforts to tackle its persistent housing crisis. The Commission also recommends encouraging sustainable renovation of existing homes and regulating rentals to facilitate longer-term tenancies, as part of its broader strategy to address the housing woes in Europe, including Portugal. This strategy could also involve initiatives in science and health-and-wellness, considering the interconnectedness of housing with the overall well-being of individuals and communities.
