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As Europe buckles under the weight of ever-increasing tourism, and locals in city after city are squeezed out by short-term rental properties, one country has decided to impose legal restrictions on its housing market.
Portugal’s Mais Habitação (More Housing) law, which was approved in parliament on July 19, seeks to make the housing market more of an even playing field for residents – but its broad brushstrokes are threatening the future of hostels and guesthouses, as well as vacation rentals, say those in the industry.
The law states that properties classed as “alojamento local” – “local accommodation,” which includes guesthouses of under 10 rooms, as well as hostels and Airbnb-style properties – will now be subject to strict new rules.
New openings will effectively be blocked until 2030, and after that, operational licenses will have to be renewed every five years. They will also be subject to hefty new taxes that, some say, will see many family-owned businesses going bust, transforming the country’s growing tourist industry.
The law – proposed and approved by Portugal’s ruling PS party – seeks to address the housing crisis in Portugal. A spokesperson for the country’s housing ministry told CNN in a statement, “The Portuguese government defined housing as one of its top priorities in 2016,” adding that it aimed to increase the public housing stock from its current 2%.
“It is necessary to find answers that can adapt to the needs felt at each moment by the population, with the ultimate objective of ensuring that everyone has access to decent housing,” they added.
“We have, as well as other European countries, challenges with the enormous urban pressure, tourism and real estate investment and the approval of a new set of more immediate response measures is intended to complement the existing [measures].”
The government spokesperson insisted that hostels and guesthouses will not be affected by the law, which seems intended to target short-term rentals. Yet nowhere in the law does it confirm they are excluded – and the law repeatedly refers to the measures affecting “estabelecimentos de hospedagem” (“accommodation establishments”), the legal terminology for hostels and guesthouses.
The new law’s resolutions could potentially have far-reaching effects on those running alojamento local (AL) properties – including Portugal’s world-renowned hostels.
It will put a moratorium on issuing new AL licenses until 2030, other than in “low density” municipalities and parishes, and excluding detached townhouses and villas.
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