Housing crisis drives protesters to Parliament as rents consume wages
Dozens gathered outside the Assembly of the Republic on 24 September to demand that MPs reject what they call a "blank cheque" for evictions and rent increases. The vigil, organised by the platform Casa para Viver and the movement Porta a Porta, pressures parties to vote against the government's proposed legislative authorisation when it comes to the general discussion on 30 September.
What the government proposes
The executive led by Luís Montenegro wants to reform urban leasing rules in the Novo Regime do Arrendamento Urbano (NRAU), the Civil Code and the Code of Civil Procedure. The stated aim is to revitalise the supply of housing for rent, but activists say the changes go too far.
Among the contested measures:
• Accelerating evictions by reducing the non-payment period from three to two months and introducing rules for repeated delays
• Flexibilising rental contracts, including ending the limit on security deposits and advance rent payments
• Ending the administrative brake on rent increases, removing the 2% annual cap for new contracts
The Portugal-based property portal Idealista reports that the median price for a one-bedroom apartment now stands at €1,128 per month — more than €200 above the national minimum wage. Prices are highest in Lisboa, Faro and Madeira.
Political divide over tenant protections
The Socialist Party (PS) criticises the government's approach, arguing that proposals which consider €2,300 as a "moderate rent" are unaffordable for most families. The PS, led by José Luís Carneiro, wants to maintain the 2% limit on annual rent increases and has proposed increasing the Municipal Property Tax (IMI) on vacant properties and raising the Municipal Property Transfer Tax (IMT) for foreign buyers who do not intend to live in the property permanently.
The Left Bloc (BE) describes the government's proposal to speed up evictions as "total cruelty" and warns of a "pandemic of evictions" if approved. The party proposes establishing a ceiling on rents based on location and property characteristics.
The Portuguese Communist Party (PCP) argues the changes "weaken tenants" and proposes limiting evictions for non-payment when tenants can prove insufficient income, or when they can pay at least two-thirds of the rent owed. The PCP also wants a minimum ten-year term for urban rental contracts.
The gap between income and housing costs
Trade unions are also weighing in. Both the General Confederation of Portuguese Workers (CGTP) and the General Workers' Union (UGT) argue that raising the minimum wage beyond €970 is "possible" and "imperative". The CGTP cites a study indicating that an adult needs at least €1,337 per month "to live with dignity".
Filipe Marques, from the CGTP executive committee, notes that 91% of domestic market sales go to micro-enterprises, so increasing workers' purchasing power would benefit the economy. The CGTP defends a 15% wage increase, guaranteeing a minimum rise of €150 for all workers.
Carlos Alves, executive secretary of UGT, recalls that the government programme pointed to a minimum wage of €1,100 by 2029 and says the target cannot be concentrated in the final years.
Meanwhile, the food basket tracked by Deco Proteste fell €1.86 in the week ending 23 September to €255.97, though it remains more than €11 higher than a year ago. The biggest year-on-year increases were salted cod (up 29% to €20.70/kg), vine tomatoes (up 29% to €2.75/kg) and carolina rice (up 24% to €1.79/kg).
Government maintains fiscal discipline
Economy Minister Manuel Castro Almeida has said the executive has limits. "We will not break the principle of sound accounts," he told journalists in Brussels. "We will try not to go into deficit because of this issue."
The minister explained the government's approach: returning any excess VAT revenue through reductions in the Tax on Petroleum and Energy Products (ISP), and providing targeted support to transporters and farmers to prevent cost increases from reaching supermarket shelves.
The President has now signed into law supports for fuel price increases and changes to the Green Rail Pass, which from Sunday allows travel on all CP lines, except Alfa Pendular and Intercidades first class, for €20 per month.
Other cost-of-living measures
Several other measures are in effect or being debated:
• Support of €25 for bottled gas extended until December, available to beneficiaries of the Social Tariff for Electricity and households receiving certain minimum social benefits
• Additional Municipal Property Tax (AIMI) due by the end of September for property owners whose urban residential properties exceed €600,000 in total taxable value
• Subsídio de Educação Especial now fully manageable online through the Social Security portal for children and young people up to 24 years with permanent disabilities
• Tourist passes for Lisbon's metropolitan area, with the Navegante 1 day at €15, 3 days at €27, and 5 days at €37.50 — commercial launch date yet to be announced
The political debate on 30 September will set the direction for Portugal's housing policy at a time when, for many residents, the gap between income and the cost of keeping a roof overhead has never felt wider.
