The Dysfunctional Rental Market in Portugal: A Policy Review

Abstract

In Portugal, due to the rental market’s inability to respond to the constant mismatch between supply and demand over the course of decades, things have become increasingly residual and dysfunctional within the scope of the homeownership market. Through analysis of various laws and legislative changes over the last century, as well as the participant observation acquired by the author’s two-and-a-half years of experience as a stakeholder in the sector, this paper aims to review rental policies in Portugal and the multiple impacts they have had on reproducing various weaknesses in the rental market. The paper concludes with some policy recommendations that advocate how government action is decisive in shaping housing and rental policy, establishing a legal and regulatory framework able to transmit credibility, stability and security to the contractual forms between supply and demand, in keeping with an effective right to housing through affordable renting.