Portugal's Socialist Party demands government scrap rent law agreement with Chega

Demand at Republic Day ceremony

Speaking after the 5 October Republic Day ceremony at Praça do Município in Lisbon, Socialist Party (PS) Secretary-General José Luís Carneiro demanded that the Social Democratic Party (PSD) abandon its agreement with Chega on the New Urban Lease Regime. The municipal gathering included speeches by President António José Seguro and was attended by Prime Minister Luís Montenegro. Seguro praised political stability and the rapprochement between the PSD/CDS executive and the PS over the 2027 State Budget. However, Carneiro argued that the government rental accord compromises housing rights for vulnerable groups. Carneiro stated that while the PS will not plunge the country into a political crisis, stability must address wages, living costs, and housing security.

I demand that the Government drop in the Assembly of the Republic the agreement it made with Chega. An agreement that throws particularly the elderly and the young into conditions of severe precariousness regarding rents and regarding the security of having a home to carry out their future life project. That is a fundamental demand.

PSD rejection and parliamentary standoff

The PSD rejected the demand immediately after Carneiro spoke. PSD Vice-President Alexandre Poço defended the legislative proposal as a balanced measure between property owners and tenants, stating that the PSD will continue negotiating with parties willing to pass and improve government legislation. Poço maintained that the draft represents a middle ground between tenant groups and landlord associations.

When the Government came forward with the rental proposal, we heard tenant representatives saying that the Government is going too far and then we heard property owners' representatives saying that the proposal falls short. That is, we managed to make a proposal that seeks to bring out the best for both, not yet managing to safeguard the particular interests of each, because we want a proposal that serves the rental market as a whole.

Disputed rental provisions and budget negotiations

The government legislative authorization bill to amend rental rules passed its initial vote in parliament after Chega abstained, advancing the draft to the specialized parliamentary committee. The PS leadership opposed the measures, arguing that the agreement accelerates evictions. The Socialists specifically contest four provisions: removing the 2% cap on rent increases for new contracts, allowing landlords to demand three months of advance rent instead of two, updating lease contracts signed before 1990, and easing eviction procedures. Regarding the 2027 State Budget, which the PS plans to enable through abstention, Carneiro stated that the government agreed to conduct future constitutional revisions jointly with the PS.

Opposition housing package and timeline

To counter the government bill, Carneiro called a meeting of the PS national leadership on 6 October and scheduled an interview on CMTV Grande Jornal da Noite at 20:20 to outline alternative proposals for tenants and landlords. The PS tasked Luísa Salgueiro, mayor of Matosinhos and party national secretary, with coordinating a program titled National Strategic Solution for Housing. The proposal aims to establish a framework for an Accessible National Housing Service. The party plans to conclude consultations with civil society, local mayors, and the construction sector by 24 October 2026, followed by the release of the strategic document on 7 November 2026.