Portugal launches Emergency Housing Fund to aid renters facing rising rents

Portugal's Emergency Housing Fund (FEH) will provide financial support to families in "housing vulnerability", including tenants at risk of losing their homes due to rent increases or eviction orders. The fund can be activated for renters facing eviction following a court decision or a special eviction procedure.

The measure is part of a broader rental reform approved on 9 July by the Council of Ministers. The reform transitions pre‑1990 leases to the New Urban Lease Regime (NRAU). Tenants under 65 with annual household incomes below €64,400 will keep their rent frozen for five years, with possible updates only after that period. Households earning more than €64,400 may see rent adjusted to 1/15 of the property's tax value. Tenants over 65 do not transition to NRAU, but their rents may also be updated to the same formula.

Minister Pinto Luz noted that only a few cases are expected where contracts lapse after the transition, emphasizing the five‑year stability provided by the new regime.