Making Lisbon an affordable place to live

in Regional · 22-05-2020 01:00:00 · 0 Comments
Making Lisbon an affordable place to live

Lisbon property owners are able to take advantage of a special programme aimed at helping those who are expected to lose significant income from being unable to rent out their properties for tourism, while also helping young people and families to access affordable housing.

Owners can now apply to the Renda Segura Programme to rent their houses to the Lisbon City Council, which will then sub-lease them at affordable prices, with an increase for those who have accommodation with licenses for tourism rentals.
The announcement was made by the Mayor of Lisbon, Fernando Medina (PS), at a press conference broadcast ‘online’.
The mayor pointed out that the programme “is primarily aimed at city property owners looking for an income from their property”, with “special conditions” for those who have “properties currently listed as Local Accommodation (AL)”.
“We are all aware of the effort that many owners have made in the rehabilitation of properties for Local Accommodation. We also know that, unfortunately, as a result of the situation we are experiencing, tourism will be one of the activities that will take longer to recover”, noted the mayor.
The Câmara de Lisboa will, therefore, pay more for the rent to the owners of AL properties - which will also be reflected in the rent to be paid by the tenant - in order to “keep the furniture inside these properties”, which “will then be sub-leased in the same conditions for young people and middle-class families”, explained Fernando Medina.
These houses, which will be rented according to the prices stipulated in the Affordable Income Program of the municipality, will allow “to increase the stock of affordable rental properties” in the capital and also aim to allow more people to live in the centre of Lisbon, stressed the mayor .
“This pandemic we are experiencing has made the urgency of accelerating the transition to a greener, more sustainable city with less pollution even more evident. We know that the best way to do this is to make people live closer to their jobs, closer to the place where their children study. Closer to the place where they can have access to culture, commerce, leisure”, he argued.

Fernando Medina also underlined that the municipality will pay “attractive rents” to the owners, who will be exempt from risks, since it is the Lisbon City Council that will pay the lease amount “on time” and who will be “managing the tenant risk of the sublet ” of a house.
“It is a fixed, constant income, paid on time, without risks, without complications without hassles”, defended Medina, adding that these properties are exempt from IRS, IRC and IMI.
In addition, the municipality may “pay up to three years’ rent in advance”, for those who choose an annual payment, “a very important support that is aimed at those who have immediate costs”, such as carrying out small works, or “who need additional revenue ”.
According to the “rent reference values”, the maximum limits to be paid by the municipality will be €450 for a T0, €600 for a T1, €800 for a T2, €900 for a T3 and €1,000 for T4 houses or larger.
These values vary, however, depending on the parishes where the properties are located and the council will opt for the most economically advantageous proposals, the municipality’s official source told Lusa.
The rent increase for AL owners will be 10 percent, including in cases where the council already pays a maximum amount of rent, the same source said.
Applications for the first 300 properties can be submitted by the owners through the website www.rendasegura.lisboa.pt until 30 June.
On September 15, the Lisbon City Council will open a second phase of candidacies, until October 30, said Medina, refusing to advance figures.
The mayor also called for candidates to be quick in submitting proposals.
“The sooner they bid, the sooner we can make the contracts, the sooner the owners receive the rent, the sooner we will make the houses available to young people and middle class families,” said the mayor at the press conference.
The Renda Segura Programme, approved by the chamber on 12 March, with the vote in favour of the PS and the abstention of all other parties, will have an annual cost of around €4 million for the municipality and the contracts have a term of at least five years.
According to a statement, the municipality intends to have “more than 1,000 homes, by the end of the year, to make available as Accessible Income”.”



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