The new state budget (OE2023) includes changes to be made
concerning the New Urban Lease Scheme (NRAU), which has been in force since
2006, having undergone changes in 2012. In the OE2023, the Government states that
it will “evaluate” the NRAU in 2023. This means that old rents (prior to 1990)
can be transferred to the current lease regime, that is, they will no longer
frozen and will be updated, in the same way other rental agreements are.
According to Público, the current version of the NRAU, in
force since 2012, defined that old lease contracts (entered into before 1990),
whose tenants were over 65 years old, disabled or proved to have a gross annual
income of less than five minimum wages, could only transition to the new regime
at the end of a transition period then set at five years. This period was,
however, extended to 10 years.
The publication also adds that the decision, by the
Government, whether or not to keep old rents frozen will be taken after
publication, in the Diário da República, of the report that will be prepared by
the Housing and Urban Rehabilitation Observatory following the most recent
census. This report must be presented to the Government within 120 days after
the publication of the aforementioned data, which should take place in
November. In other words, the report must be presented by May 2023, and until
that month, at least, the suspension of updating old rents will be in effect.
Good news. No country should be controlling rents in the private sector, unless it wants to make renting even more scarce and hard to come by. There has to be something in it for the landlord, and we can't expect property owners to act like charities, renting out property for less than a fair market rent.
By Billy Bissett from Porto on 19 Oct 2022, 12:05
Bad news. More evictions. More Airbnb's. More empty apartments. More foreign absentee landlords. More gentrification. Less authenticity. We need more state owned council houses and a ban on buy to let mortgages. Why anyone should have to pay a huge portion of their salary to pay off someone else's mortgage is just fundamentally wrong.
By Henry from Lisbon on 24 Nov 2022, 09:07