LISBON — Portugal's parliament approved a contentious rental market overhaul in its first reading on Wednesday, designed to accelerate evictions and remove rent controls on new leases. The center-right government says the reform will encourage property owners to make more homes available for rent.
The far-right Chega party unexpectedly abstained from the vote despite objecting during parliamentary debate. All left-wing parties voted against the proposal.
Portugal faces a severe housing crisis, with rents for new leases nearly doubling since 2017. The government asserts that over 250,000 homes remain empty because legal uncertainties deter owners from renting them out.
Proposed changes include reducing the rent arrears threshold for eviction from three months to two months. Landlords would also gain the ability to evict tenants who consistently pay rent more than eight days late. The reform would eliminate a 2 percent cap on rent increases this year for properties leased within the previous five years.
Tenants' groups oppose the bill. Antonio Machado, head of the Lisbon Tenants Association, called the proposal "sheer savagery." He said it would favor landlords and lead to higher rents rather than improve housing affordability, and that cases of tenants defaulting on rent are negligible.
Chega indicated it plans to propose modifications before the final vote, calling for a "more balanced solution" to Portugal's housing challenges.
The country has about one million rented properties. More than 23 percent of these leases have been in effect for over 20 years.
