23
23

Affordable Rents Program Has Leased 160 Homes

25 May 2020 – The Affordable Rents Program (PAA), in operation for 11 months, has granted a total of 160 rental contracts. The figure compares to 591 property owners who have registered homes ad 9,317 applications submitted by potential tenants.

Of the 160 contracts concluded under the PAA, just over three-quarters are for homes in Lisbon, while another 10% are for residences in Porto. A plurality (43%) have monthly rental costs 300 euros and 500 euros per month, 36% have rents between 500 euros and 800 euros, 12% pay less than 300 euros per month, and only 8% pay more than 800 euros.

In February, the Portuguese government signed agreements with more than a dozen real estate platforms and brokerages to facilitate access to affordable housing. Property owners who voluntarily join the programme are fully exempted from income taxes on rental income. Tenants pay roughly 20% below the going market rate for a flat or house.

The maximum rent for a home under the program is roughly 200 euros for a studio to 1,700 euros for five-bedroom home, depending on the property’s location. Properties in Lisbon have the highest rental costs in a six-tier classificatory system, while more than half of the municipalities are in the lowest price bracket.

Original Story: Jornal Económico / Lusa

Translation/Summary: Richard D. Turner