Portuguese government approves rental reform and creates emergency housing fund

The Portuguese Council of Ministers approved a comprehensive reform of the urban rental regime (NRAU). Key provisions include reducing the period of arrears that trigger eviction from three months to two, removing the cap on rent increases for new contracts, allowing landlords to request up to three months’ rent in advance and eliminating limits on security deposits. Contracts predating 1990 will transition to the new regime with rent adjustments based on tenant age and household income.

A new Emergency Housing Fund will provide direct, non‑repayable assistance to families facing eviction or domestic‑violence‑related displacement, covering up to one IAS (≈ 537 €) and up to 2 300 € per month for a maximum of six months. The package also contains unrelated measures such as a single‑payment system for the vehicle tax (IUC) and a restructuring of the mobility agency (IMT).

Opposition parties criticised the changes. PCP parliamentary leader Paula Santos said the measures “push tenants onto the street” and constitute “authentic precarisation”, while PS secretary‑general José Luís Carneiro warned they “facilitate evictions” and threaten the dignity of elderly and vulnerable tenants. The government defended the reforms as necessary to increase housing supply and restore confidence between landlords and tenants.