Deco proposes 18 housing measures, including a three-year rent cap in pressure zones

The package

The Portuguese Association for Consumer Protection (Deco) presented 18 housing measures on Tuesday, 10 November 2026, to the government, parliament and President António José Seguro. The proposals are split into three horizons: six for the short term (up to 12 months), nine for the medium term (one to four years) and three for the long term (five to ten years). Deco says the aim is to make housing fairer, more affordable and more sustainable, while protecting tenants who already rent and expanding affordable supply.

Rents and the market

Deco points to rising rents. In the second quarter of 2026, the median rent for new contracts reached 10.17 euros per square metre across Portugal and 17.79 euros in Lisbon. For an 80 square metre home, that works out to about 814 euros and 1,423 euros a month. Rents on new contracts rose 10.2% over the year, and young people leave their parents' home at 28.9 years on average. Households with low and middle incomes and tenants are among the groups hit hardest.

Portugal10.17

Lisbon17.79

Portugal

10.17 EUR per m²

Lisbon

17.79 EUR per m²

Data from the article text

Short-term measures for tenants and landlords

Deco wants new-contract rents capped temporarily for three years in areas of high housing pressure, with inflation as the reference. It also asks that existing limits on deposits and advance rent be enforced, that successive contracts meant to bypass renewal rules be stopped, and that transitional and room leases be clarified. Before any eviction for non-payment, a tenant should receive a notice and a deadline to catch up, with mandatory free mediation.

The association also proposes a Rent Guarantee Fund that would pay landlords up to six months of arrears when a tenant proves an inability to pay. The tenant would repay the fund over up to 36 months, according to income. Diario de Noticias reports that the fund would be financed from public and private money, with a small contribution from participating landlords, and that Deco considers it a financial advance rather than a subsidy. Deco stresses that landlords wait on average 10 months for an eviction.

“Above all, there is a lack of affordable supply.”

Tax, support and the 2011 deduction

Deco proposes restoring and widening the IRS deduction on mortgage interest for a permanent home, applying it regardless of contract date, including contracts signed after 31 December 2011. The background is that under the government led by Pedro Passos Coelho, following the troika's assistance programme (2011-2014), the deduction rate fell from 30% to 15% of eligible charges, with an annual cap of 296 euros on interest. Contracts signed up to 31 December 2011 kept the right, while contracts signed from 1 January 2012 have no such deduction. Deco also proposes extending the extraordinary rent support to households with an effort rate above 35%, granted automatically, and raising the IRS rent deduction to 1,000 euros from 2027, indexed annually to inflation.

Supply and transparency

Deco notes that public housing makes up only about 2% of homes. The 2021 Census counted about 723 thousand vacant dwellings, close to 12% of the stock, though not all are ready to live in. The association asks for the list of state-owned vacant properties to be published, with their intended use and a timetable for affordable rental, along with an annual housing report and a public panel for each municipality tracking the 1st Right programme and the Recovery and Resilience Plan (PRR).

Short term (up to 12 months)6

Medium term (1 to 4 years)9

Long term (5 to 10 years)3

Short term (up to 12 months)

6

Medium term (1 to 4 years)

9

Long term (5 to 10 years)

3

Data from the article text

Criticism and open questions

Diario de Noticias reports that Paulo Fonseca, Deco's strategic adviser, answered its questions in writing. Deco rejects the argument that the rent cap would shrink supply and says the measure would not freeze rents. Deco faces criticism from the sector and opposition from the government, according to the same report.

“It is not a freeze: the landlord keeps the real value of the rent.”