Lisbon Extends Ban on New Local Accommodation Licenses: What You Need to Know

Lisbon City Council Extends Suspension of Local Accommodation Licenses

The Lisbon City Council has decided, under a proposal from the Socialist Party (PS), to extend the suspension of new licenses for local accommodation in the city for an additional six months. This measure will remain in effect until the municipality presents a ratio of permanent housing to local accommodation establishments that is equal to or greater than 5%.

In a private meeting, the proposal was approved by a majority, with the PSD/CDS-PP leadership abstaining. The latter had proposed a similar initiative, but it was ultimately rejected by the opposition, as reported by a source from the council.

Besides the proponent PS, the PCP, BE, Livre, and Cidadãos Por Lisboa (elected by the PS/Livre coalition) also voted in favor of the proposal, which will now be submitted to the Municipal Assembly.

The Context of the Suspension

The extension of the "immediate suspension" of new local accommodation registrations comes in response to a unanimously approved proposal on October 30, 2024, also initiated by the PS. This suspension aims to negate the effects of the new legal regime for local accommodation decided by the PSD/CDS-PP government.

The PS warns that the implementation of the new legislation in Lisbon could have dramatic consequences, such as a rush for licenses and the subsequent loss of homes in the traditional rental market. By prolonging the suspension, Lisbon safeguards against lifting the ban on new local accommodations in 20 of its 24 parishes until the new Municipal Regulation on Local Accommodation comes into force.

Conditions for the Suspension

A key condition for this measure is that the municipality must present a ratio of 7.2%, which currently meets the requirement. Additionally, the suspension applies to parishes where the ratio of local accommodation establishments to existing residential properties is equal to or greater than 2.5%.

While the PSD/CDS-PP proposed similar criteria for the suspension of new licenses, the opposition raised concerns about "legal security", leading to the approval of the PS's alternative.

Political Dynamics

In a statement, the PS highlighted the political flip-flop of the council president, Carlos Moedas (PSD), who, after previously voting for measures to contain local accommodation, has now opted to support the PS's measure. The PS noted that Moedas had consistently favored the liberalization of local accommodation, even demonstrating support for business interests in protests against stricter government legislation.

Ongoing Regulatory Changes

The Municipal Regulation on Local Accommodation is currently undergoing revisions, with the public consultation period completed between March 5 and April 15 of this year. The council received 71 written contributions and suggestions from three public sessions, which are now being analyzed for the final proposal to be presented for approval.

The Lisbon City Council consists of 17 members, including seven from the "New Times" coalition (PSD/CDS-PP/MPT/PPM/Aliança) who govern without an absolute majority, alongside members from the PS, PCP, Cidadãos Por Lisboa, Livre, and BE.