Source: Freepik Author: Redaction The Lisbon Metropolitan Area has been registering great vulnerabilities in the housing sector , mainly because, due to the large number of residents, there is a shortage of properties on the market . Demand is constant and, for this same reason, there is no easing of average prices, with social inequalities increasing in a worrying way and, on this same topic, the Lisbon City Council reveals that only in the last five years, within the scope of affordable rental housing programmes, it has distributed 1,100 houses, having received, in the same period, 57.6 thousand applications. The expression of the problem begins with this statistic: it has only been possible to respond to less than 2% of the applications made to the affordable housing programmes. Since 2018, this has been a recurring pattern, as for just one property, there are around 52 applicants. According to the city council, an average of 3,200 applications are received per competition and the last one, in April, included a total of 64 homes in the Avenidas Novas area. During the mandate of Fernando Medina, former mayor, 578 properties were handed over, while under Carlos Moedas, the current head of the municipality, the number fell to 532 properties. More supply is expected in Porto Through the Porto com Sentido Programme , which includes support for accessible rentals, it was possible to allocate 192 houses and, according to the local authority, the promotion of accessible rentals is one of the strategic axes of the Municipalitys actions with regard to housing . In this sense, 1,000 new dwellings are planned under an affordable rental regime , in a strategy that contemplates the assets of the Oporto City Hall and the owners who express their wish to put their dwellings on the market, at controlled prices. This programme, similar in several aspects to the IHRU, will grant tax benefits to owners . The City Council also plans to allocate its own assets for construction or rehabilitation, specifically 180 homes. On this topic, read: Affordable housing in Porto has increasing demand , IHRU opens applications for affordable housing or Value of rents in new contracts increased 10.6%
Source: JLL Author: Redaction With increasing pressure to reduce carbon footprints and investors making their portfolios more and more sustainable , green leases are an opportunity from which landlords and tenants can benefit. In this sense, JLL s new report Green Leasing 2.0: Bridging the owner-occupier divide to deliver shared ESG value, sent in a release to SUPERCASA Notícias , outlines important considerations for both occupiers and landlords to take into account in order to move together towards a more sustainable path. If all rented office buildings implemented green leases, the US market, for example, could save US$3.3 billion annually, estimates the Institute for Market Transformation (IMT). It would also save 1.1 billion square metres of office space and 2.2 billion square metres of industrial space for leases ending before 2030 in the United States alone. This study also highlights the importance of collaboration and communication between parties. JLLs research on decarbonising construction also revealed that 42% of investors and 34% of occupiers already implement green clauses in their current contracts , figures that are expected to double with a further 37% of investors and 40% of occupiers planning to enact these clauses by 2025. In this sense, a vision focused on decarbonisation throughout the whole life cycle of a building lease could help both occupiers and landlords achieve sustainability goals. In the current energy crisis and with increased pressure to meet sustainability targets, it is crucial that landlord and occupier collaborate to become more energy efficient. This does not happen in existing leases (green or non-green), which demonstrates the need for a new model with greater transparency and greater data sharing, comments Mariana Rosa, Head of Markets Advisory at JLL, in the note to which SUPERCASA Notícias had access, and adds: Green Leasing 2.0 will allow for increased operational efficiency and reduced costs, highlighting the value of greener buildings for all stakeholders. There are only seven years left to halve emissions in construction and comply with the Paris Agreement, so the focus of property leaders should be on: 1. Education - Leases are complex legal agreements and there is generally some reluctance to agree to certain terms unless there is a clear understanding and reward. Information and shared communication in the lease process can help reduce the barrier that exists between building owners and occupiers, with the aim of ensuring language is understood and reducing potential issues, associated costs and fines; 2. Engagement - Ongoing engagement and collaboration aligned with the common mission between owners and occupiers is necessary for the duration of the lease. Clauses that formalise regular (annual, for example) points of contact are usually the most useful and effective. However, engagement should remain flexible. 3. Shared equity - Green leases should be equitable forms of contract, including cooperation and cost-sharing clauses between owners and occupiers. Transparency and sharing of energy, water and waste production data also fosters this practice and are good ways to promote trust. Measuring and sharing data is a crucial first step in integrating green leases, which are more common in countries like Canada, France and the Netherlands. With this data, owners and occupants can set measurable targets and keep green leases focused on positive climate and environmental outcomes. By prioritising equity, parties mutually benefit by enabling better decarbonisation solutions, better lease terms and stronger partnerships. JLL has embarked on a transformative journey to integrate sustainability into our corporate strategy, assures Maria Empis, Head of Work Dynamics at JLL. Green leases are an important tool to help us achieve our ESG goals with the added bonus of driving efficiency. For example, with our adjustments we have made to JLLs offices globally we are saving 15% on energy, representing annual cost savings of over $2 million across our portfolio, he explains. Read also: Recycling targets may not be met or Loures starts pilot project to encourage recycling
Source: Freepik Author: Redaction The demand for affordable housing in Portugal has been hampered by the gradual increase in rent prices , which makes Portugal one of the countries where renting a house is already more expensive. Supply is scarce and the Government was even forced to design a strategy to combat this problem, resulting in support and measures to increase the available housing stock. According to the most recent figures released by the INE (National Statistics Institute), rents in April rose 4.3%, one percentage point more than in March, in a trend that shows no signs of slowing down: the homologous variation of housing rents per square metre was 4.3% in April 2023 (4.2% in the previous month). The most intense increase, according to the statistical office, occurred in the Autonomous Region of Madeira, where the increase was 4.9%, and the region with the highest positive monthly variation was the North, which registered 0.5%. As for the negative monthly variation, there was no region verified. Therefore, in comparison to March, the average value of the average rents per square metre increased 0,4%. About Renting a Home: Porta 65-Jovem applications run until May 30 , Affordable housing in Porto is increasingly in demand
Source: Freepik Author: Redaction According to the Barometer Landlord Confidence, promoted by the Lisbon Landlords Association (ALP) and which gathered the answers of 770 landlords, the most resonant number concerns 186 landlords, who admit to be going through a situation in which, having rented houses, they report rent arrears. In the same scope, 23,7% register delays of less than two months and 31% admit being behind schedule for more than six months. The ALP comments: of these landlords who sustain losses, approximately one third (31%) sustain losses of between more than six months and more than 18 months (...) a quarter of the landlords who are victims of breach of contract accumulate losses between three and six months of income . This is a concern for the Landlords Association, especially since, for 21% of the respondents, these rents correspond to the entirety of their source of income. This barometer was carried out following the measures announced by the Government, of the More Housing package, however, despite the effort to protect landlords, only three in every ten claim to have already activated the legitimate right to eviction, in court, or to have resorted to the Balcão Nacional de Arrendamento (National Lease Counter) that allows the payment of the tenants rent by the Government, which assumes it. There is, according to the ALP, a tie that prevents landlords from advancing through the judicial route, which is justified by the humanism and understanding towards the situation of their tenants, according to 29.7% of landlords. The President of the ALP, Menezes Leitão , states that these are very recurrent situations of non-compliance and assumes his concern for the landlords , who feel aggrieved for that very reason, and comments: the idea presented by the Government, which is to say that it gives a subsidy when there is non-compliance with the rents, in our opinion will worsen this non-compliance (?) the tenants wont bother paying the rent. They will find that it is not even worth worrying about paying, [because] if there are problems, it will be the State replacing the tenant and that, in our view, will be a factor that will probably aggravate rent defaults. Read also: Affordable rent will be promoted in 26 municipalities , Corvo Island municipality identifies housing shortage
Source: Freepik Author: Redaction All young people up to 35 years old with a rented house, who do not yet benefit from support, have until May 30 to apply for Porta 65. After the most recent updates of the Government contemplated in the State Budget for 2022, in which some adjustments to the programme were implemented, new maximum ceilings for the rent allowed are now in force , allowing more young people to apply. However, this is not the only novelty, since it is under discussion, in a proposal inserted in the scope of the More Housing Programme, the opening of these applications throughout the year, contrary to the periods currently defined, and which will be discussed in Parliament already on 19 May. At the end of 2021 were 11.052 young people contemplated by the support, a number that has been increasing and for which the Government has already established a goal, wanting to reach, until 2026, 22.000 young people. For such, it is known that the budget allocated to the program will be annually increased, which should reach 47 million euros in the next three years. The applications for this year began last 28 April and will run until 5pm on 30 May , although there may be updates according to the next meeting in the Portuguese Parliament, and it is expected that they will be continuous, according to adjustments still being made by the Institute of Housing and Urban Rehabilitation (IHRU). How can I apply? Through the Housing Portal , where it is necessary to fill in an electronic form by accessing the Finance Portal with taxpayer number and password. The necessary documents are the following: Promissory contract or lease contract , where the possibility of renewal or the term of validity must be stated, translating into the 12 months of subsidy. Receipt of the rent of the previous month or of the month in which the application is made , although the last three receipts of transfer of the rent payment, previous to the application period, may also be admitted. Identification documents of all the elements indicated in the application , whether candidates, dependents or ascendants. Proof of income through IRS from the previous year. If not available, this must be proved via the IRS certificate of exemption, which can be obtained from the finance portal, or via the extract of the contribution career, obtained from the direct social security site. All cohabiting or single young people aged 18 or over and under 35 are eligible , although in a couple, if one of the members is 36 and the other 34, they are still eligible. In this situation, a couple does not need to be married or living in a non-marital partnership. In what concerns the value of the rent, this should not be higher than the maximum value allowed in the area where the property is located, in accordance with the types indicated in the table - which can also be consulted on the Housing Portal. Besides, to be able to submit the candidacy, the effort rate should not be superior to 60%. When do the results come out and what happens if my application is approved? Normally, the applications are analysed for 60 days after the end of the deadline in April and the results are expected to be posted in the month of September , which will appear on the Housing Portal. And, if the candidacy is approved, the candidate will benefit from a subsidy during 12 months, destined to the payment of the rent, which corresponds to a percentage of its value. The payments are made by bank transfer, to the NIB indicated in the candidacy, until the eighth day of each month and the subsidy can extend , at most, for up to 5 years or 60 monthly instalments, being the first attributed after the results of the competition without retroactive effects. See other interesting topics: Payment of IMI runs until the end of the month , Permanent Property Certificate: All you need to know
Source: Freepik Author: Redaction The scourge of the lack of housing is notorious in several parts of the country, especially in large urban centres where there is overcrowding, scarce supply available and also the price per square metre of rents, which continues to rise. To respond to this problem, the Accessible Housing Counter, promoted by the City Hall, opened at the end of last year in Oporto. Among the most sought after services, the local authority highlights three: the requests related to the 1st Right programme, the accessible renting draws and also the maintenance requests. However, this counter provides a series of other services, such as access to an online simulator that allows a preliminary analysis for eligibility to the 1st Right Program, which is intended to support those living in undignified conditions and without financial capacity to bear the cost of adequate housing. Porto will invest 3 million in the rehabilitation of vacant properties The fight against the housing crisis has been one of the guidelines of the Porto City Hall, which will promote the rehabilitation of 19 vacant houses in a total investment of around 3 million euros, it has announced. These 19 buildings were originally built in the twentieth century, and are therefore endowed with high architectural interest and heritage value, and the municipalitys goal is to protect and preserve them, through a process of requalification. The local authority explained: the rehabilitation of this set of vacant buildings also has the mission of introducing references for future interventions in the remaining houses, making it possible to recover a common architectural identity, worthy and representative of the historical value and heritage of the building. Read also about this topic: Nine municipalities sign property management agreements , Affordable rent will be promoted in 26 municipalities or Municipality of Corvo Island identifies housing shortage
Source: Freepik Author: Redaction The Ministry of Justice has publicly announced that 44 properties will be made available, in partnership with the Institute of Housing and Urban Rehabilitation, for accessible lease. These are mainly vacant or unused houses and former magistrates properties that will be recovered to create 47 new homes, under the protocol formalised between the IHRU and the Institute of Financial Management and Justice Equipment. This incentive will be carried out in 26 municipalities of the country, including islands , and will be attributed by the IHRU through the Accessible Rental Programme tender. However, according to the Ministry of Justice, preference will be given, at the time of attribution, to renting by Justice workers for half of these properties. The 26 municipalities of the country where these buildings are located are: Alijó , Almada , Almeida , Angra do Heroísmo , Armamar , Arraiolos , Castro Daire , Celorico de Basto , Covilhã , Évora , Fronteira , Loures , Mação , Marinha Grande , Montalegre , Oliveira de Frades , Peso da Régua , Ponta Delgada , Portel , Povoação , Sabugal , Santa Cruz da Graciosa , Santa Cruz das Flore s, Santiago do Cacém , Setúbal and Vinhais . Do you want to find properties in any of these regions? Consult SUPERCASA
Source: Pexels Author: Redaction The island of Corvo, in the Azores , has identified a housing shortage problem , with a local housing strategy waiting to be approved in order to start the rehabilitation process of about 80 houses that are in need of interventions, in a goal that extends not only to the rental market, but for the creation of more own housing, in the old part of the village. José Manuel Silva, Mayor of Corvo , stated: not all the houses to be rehabilitated would be to put on the market for tourism or long term rental, serving also for own housing, however, this is a process that has been failing due to the lack of consensus regarding the managing entity , despite the rehabilitation project being initially contemplated in the Ecomuseum initiative, in a partnership between the Regional Directorate of Culture and the municipality. Currently, according to data from the municipality, there are already twenty people with interest in recovering houses to live in , being a priority for the Azores Government to invest in housing and increase the offers, according to the rental needs verified by the islands inhabitants. This rehabilitation project should be approved by the end of the month , according to the meeting already held between the municipality and the Institute for Housing and Urban Rehabilitation (IHRU), and the councils technical team is already in the planning phase of the local housing strategy, taking advantage of the Recovery and Resilience Plan. You may also be interested in Azores reinforces public housing supply or Almost 30 thousand families wait for social housing
Source: Pexels Author: Redaction The applications of the IHRU (Housing and Urban Rehabilitation Institute) opened at the beginning of this week, which will allocate, through a draw, 27 homes in various regions of the country, under the promotion of public responses to affordable rentals , according to information provided by the institute. In this sense, the objective is to provide a response to the housing crisis that has led several families to experience difficulties in finding a home, and it is possible, if they verify the necessary conditions, to apply to this contest. This allocation will be carried out through a draw, contemplating dwellings of typology T1 to T5, in ten municipalities of the country that, according to the Ministry, are Almada , Beja , Cascais , Lisbon , Montijo , Porto , Santarém , Santiago do Cacém , Vila Nova de Gaia and Vila Real . The applications can be submitted until 28 April, through the IHRU portal , and will then be drawn among the families. However, you should check whether you meet the conditions defined by the programme and the requirements indicated in the respective notice of each competition. Keep up to date with this and other issues through SUPERCASA Notícias
Source: Pexels Author: Redaction The Porta 65 Youth, which already counts with 16 years of existence, works through the attribution of a subsidy that accounts a percentage of the rent, and its applications work, currently, through three distinct periods throughout the year. However, and in accordance with the new Government directives already announced by the Housing Minister, this will work in a continuous way, giving the possibility to all young people with ages between 18 and 35, to have access to the candidacy to receive the support throughout the year , without limitations as to the periods currently established. The application deadline extension was announced following the approval of the More Housing programme , after the Council of Ministers held in this scope, in which Marina Gonçalves, Minister of Housing, explained: today, the Porta 65 Youth operates in three application periods. What we will promote still this year is a continuous opening of applications, so that it may at all times respond to the needs of the youngest. Contemplated in the National Housing Programme, the Porta 65 Youth Programme has already helped around 42 thousand youngsters to rent a house in the last four years and one of the Governments goals is that this number continues to increase, being expected to double, until the end of 2026, the number of youngsters covered by this rental support. The costs allocated for this goal are around 182,8 million Euros. In December it was announced the increase of the ceiling of the rents defined in Porta 65, according to the State Budget of 2023 and, already in February this year, the programme started covering single-parent families and households with a drop in income , an update that is included in the More Housing Programme. You may also be interested to read: Value of rents in new contracts increased by 10.6% , Rents in arrears: How does the State support work?
Source: Pexels Author: Redaction Data released last Wednesday by the INE (National Statistics Institute) reveal increases in the median value of rents , which rose 10.6% between the months of September and December 2022 and the same period the previous year, with the value per square meter to be fixed at 6.91€. As for new rental deals, the numbers are unfavourable, with a 3.3% drop compared to the same period of 2021. The statistical office confirms: in the fourth quarter of 2022, the median rent of the 22,628 new leases for family accommodation in Portugal reached €6.91/m2. This value represents an increase of 10.6% in comparison with the same period of 2021 , being the highest homologous variation since the second quarter of 2021, since in comparison with the previous quarter, the median rent suffered an increase of 5.3%. These variations are justified by the values currently practiced in the rental market, created by the law of supply and demand . This is because, due to the scarce supply verified in Portugal, and observing a regular and growing interest, prices tend to increase , as has been happening in the last few months. However, in order to overcome this problem - which has affected so many young people and families looking for affordable housing - António Costas Government has prepared, and already approved, a series of measures to combat the housing crisis. The INE also adds that, at the end of 2022, the total number of new lease contracts signed totalled 22,628, representing a decrease in rental activity of -3.3% in homologous terms. Compared to the previous quarter, the decrease in new lease contracts was even more significant , with a drop of 6.5%. Which are the sub-regions where rents are increasing the most? The highlight goes to Trás-os-Montes, with an increase of 26,9%, despite the fact that, in general, rents have increased in all sub-regions of the country. According to INE, still in comparison with the previous quarter, it was in the Autonomous Region of the Azores where rents rose the most, with 26,1%. On the other hand, the most significant decrease occurred in Alentejo Litoral , where the drop was 13.4%. The highest rents continue to be in the Lisbon Metropolitan Area , where to rent a house costs 10.38 €/m2, in the Algarve (8.06 €/m2), in the Porto Metropolitan Area (7.62 €/m2) and in the Autonomous Region of Madeira (7.54 €/m2). See also More Housing already approved or Almost 30 thousand families waiting for social housing
Source: Pexels Author: Redaction The More Housing Program was finally approved , after another session of the Council of Ministers where the measures that, for about a month, were available for public consultation and approval, were revisited. Many of the proposals suffered alterations, and had to be adjusted according to public opinion. The approved proposals, which concern the promotion of investment in affordable rentals, the reinforcement of confidence in the rental market and the mobilisation of the patrimony available to affect housing , will now be sent to the Portuguese Parliament. Prime-Minister, António Costa, recalled: on the 16th of February we put the Mais Habitação programme under public discussion and brought to the centre of the political debate a central issue for the life of the Portuguese (...) There was a lively and participated public discussion, which was extended at the request of the ANMP, which gathered 2,700 contributions. Now, and after two of the law-proposals have already entered into force, specifically the support for rent and the subsidization of interest on housing credit, the measures related to the planning of the territory and the simplification of licensing in new projects will remain under discussion , with a date scheduled for approval at the Council of Ministers on 27 April. According to the Housing Ministers declarations, the diplomas complement the structural response that is in course of reinforcement of the public rental responses , based on several lines of action. They are the following: The stimulation of new private affordable rental projects. These will be done through the cession of lands or vacant buildings belonging to the State and contemplate a line of subsidised financing. In this case, by counting on the predictability of rents, it will benefit from tax incentives and will be integrated in the programme of accessible rents. Reinforcing the role of the cooperative sector Again, through the cession of vacant State land or buildings, with a subsidised financing line and always with the State participating in these projects. Reinforcing the trust in the rental market This intervention includes a reduction in rental taxation, in addition to a swifter justice in terms of market regulation, with special emphasis on the National Rental Counter, which will work as an intermediary. Through the National Lease Counter, the State will be able to guarantee the rents and the social situations of the tenants, allowing landlords to put their houses back on the lease market. Responding to families In this sense, two measures have already been approved - the credit for rent and the credit for housing. In what concerns the Porta 65 Youth, it is established that this will now operate continuously, contrary to the three application periods previously in force, and the New Porta 65 Plus, which will respond to the needs related to drops in income and will also cover single parent families. The intention is to give security to tenants with contracts prior to 1990 and to safeguard the compensation of landlords, with recourse to tax benefits. The Rent to Sublet programme, which involves local authorities, will guarantee that rents do not exceed 35% of household income. Fight against speculation Aims to reduce the tax benefits involved in the resale of properties that are to be put on the market, in addition to a fair rent. This is a short term measure whose objective is to limit the increase in the rents of the new contracts entered into, safeguarding those contracts that are up to the limit of the Rental Support Program. Mobilisation of the Public and Private Assets available This measure will be implemented with recourse to a line of funding granted to municipalities to guarantee conservation works on the public or private property available and to promote incentives to mobilise land for housing use. The second intervention strategy contemplates fiscal policies that, according to Fernando Medina, are aimed at improving the rental and housing market. They are the following: Reducing the taxation of rents The reduction of the general rate applied to rents will go from 28% to 25%, with a tendency to decrease throughout the duration of the lease, so that, in a five-year lease, the rate will go from 16% to 25% and, in a ten-year lease, the rate will go from 23% to 15%. In a ten to twenty year lease, the rate drops from 14% to 10% and, in a lease of more than twenty years, the rate will go from 10% to 5%. Exemption of IMI Applied to properties which are destined for accessible renting or for construction for this purpose, which besides the tax exemption, will now also benefit from the exemption of the Municipal Property Tax. All those who enter into housing development contracts with the State will also be exempt from IMT, stamp duty and VAT on the respective works. IRS exemption on capital gains All sales made between private individuals and the State, where the sale value is for reinvestment in properties destined for affordable housing, will benefit from the exemption of capital gains from the sale of property patrimony for the amortization of loans for their own and permanent home or that of their descendants. Related News: More Housing: ANPAC warns about changes in Local Lodging , Bank appraisal values fall but market remains robust
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