Housing Solutions Belong in Lisbon, Not Brussels
Opinion
By Ivo de Noronha
By rejecting the European Commission’s misguided prescriptions for rent control and Local Accommodation restrictions, Portugal’s new Democratic Alliance (Aliança Democrática /AD) government is finally injecting some common sense into the housing debate. Under the leadership of Prime Minister Luís Montenegro, the country is signalling a long-overdue pivot toward market-oriented policies that prioritise property rights, private investment, and responsible public support rather than heavy-handed regulation and centralised control.
Earlier this month, the European Commission offered its unsolicited advice: more rent controls and tighter restrictions on short-term rentals. These are the same failed interventions that have already distorted housing markets across Europe, exacerbating shortages and discouraging investment. Portugal has seen this before. The previous Socialist-led governments doubled down on these very policies, only to see affordability worsen and availability shrink. Is this really the model we want to double down on?
The new Government Program wisely dismisses rent control, recognising that suppressing prices by force doesn’t make housing more accessible but on the contrary, simply drives landlords out of the market, reduces supply, and inflates rents over time. Instead, the AD government proposes targeted subsidies for those genuinely in need, rather than punishing property owners across the board. This is a balanced approach that aims to protect the vulnerable; however, care must be taken to preserve the incentive structures that ensure a steady flow of housing supply.
Montenegro’s cabinet defies EU housing intervention.
Montenegro is also restoring sanity to the debate around Local Accommodation. The silence in the program on further restrictions speaks volumes, namely, a refusal to capitulate to anti-tourism hysteria or EU micromanagement. His administration has already scrapped the former Socialist Prime Minster’s interventionist framework, returning regulatory powers to municipalities and clearing the way for local solutions tailored to local realities.
Brussels may scoff at the ambitious goal of building 59,000 new public housing units by 2030, casting doubt on whether Portugal can meet the 2026 Recovery and Resilience Plan deadline. But rather than chiding from afar, the Commission should applaud a strategy that includes private-sector cooperation and focuses on unlocking the potential of underutilised public housing stock. That’s a pragmatic and scalable path forward.
Of course, not every aspect of the government’s plan is perfect. But for the first time in years, Portugal is choosing national interest over supranational ideology. Housing is a local issue, and it's time Lisbon, not Brussels takes back control.
Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.