License extension for holiday rental suspension
In a private gathering, the PS's plan to prolong the pause on new local accommodation registrations received the green light. A source shared the news with Lusa, revealing that the PSD/CDS-PP leadership, which governs without an absolute majority, also brought forth a similar initiative, but their proposal was nixed by the opposition.
The PCP, BE, Livre, and Cidadãos Por Lisboa members voted in favor of the PS proposal, aiming for a six-month extension to fine-tune the rules regarding these lodgings. This extension now requires approval from the Municipal Assembly.
The PSD/CDS-PP leadership, in response to Lusa, mentioned their abstention from the PS proposal because it shares the same objective: blocking new registrations until regulations are revised. They noted, however, that their and the PS's justifications for the initiatives differ.
This move follows a previous decision from October 2024, which unanimously approved a six-month pause on new license issuances. The objective here is to halt the impact of the new national regulations for local accommodations, which might trigger a license rush and exacerbate the loss of traditional rental homes.
The socialists explained that such a situation in Lisbon could bring about dire consequences, like a rush for licenses and an emptying of homes from the traditional rental market.
With the revised timeline, Lisbon manages to safeguard the prevention of new local accommodation establishments in 20 of its 24 parishes until the amended Municipal Regulation for Local Accommodation comes into force.
The criteria for applying the measure include a city-wide index of 5% or more and a relationship between the number of lodging establishments and the number of existing housing units of 2.5% or higher in each parish.
The PSD/CDS-PP's proposal was comparable, but the opposition queried its legality. In the end, they opted for the PS proposal instead.
In a statement, the PS called out the mayor, Carlos Moedas (PSD), for his about-face. They recalled that he once supported a measure aimed at containing short-term rentals and, in the past, opposed transferring power over these lodgings to local authorities.
The amendment process of the Municipal Regulation for Local Accommodation is ongoing. The public consultation phase concluded on April 15, garnering 71 written contributions and suggestions from three public sessions. The proposed regulation will be taken to a meeting for approval once the analysis is complete.
At present, Lisbon’s city council executive, consisting of 17 members, features elected members from the "Novos Tempos" coalition, the Socialists, the PCP, Cidadãos Por Lisboa, Livre, and BE. The coalition members are the only ones with portfolios, governing without an absolute majority.
- The business of regulating new local accommodations in Lisbon has become a hot topic in policy-and-legislation and politics, as the PS's proposal to extend the pause on new registrations received support from various parties, including the PCP, BE, Livre, and Cidadãos Por Lisboa.
- The general news of the recent private gathering revealed that the PSD/CDS-PP leadership initially proposed a similar initiative, but their proposal was criticized for its legality and was eventually replaced by the PS's proposal.
