The new measure provides for, “containment areas” that contribute to “preserving the social reality of neighborhoods and places,” according to the bill, which also makes it possible to “impose limits on the number of establishments” used for short-term rentals.

House prices and rents have been rising steeply in recent months, particularly in Lisbon and Porto, in part because of strong demand from foreign buyers and properties being withdrawn from the long-term rental market to be used for more lucrative tourist lets.

Containment areas will be defined by local municipalities every two years, and each single owner may only let a maximum of seven housing units on a short-term basis.

Lisbon city council has already said it will suspend registrations for short-term housing in the historical neighbourhoods of Madragoa, Castelo, Alfama, Mouraria and Bairro Alto.

Portugal’s Socialist government has been working on a set of new measures aimed at increasing the number of homes available at affordable prices to be included in the 2019 state budget.