Experts Disagree on Effectiveness of Rent Control in Portugal

Lisbon experts debate rent control’s merits and risks in resolving the housing crisis.

On May 19, 2025, the National Housing Studies Network hosted a comprehensive panel discussion at the University of Lisbon, focusing on the contentious issue of rent control as a tool to address Portugal’s persistent housing affordability crisis. The event brought together leading academics, economists, policymakers, and tenant advocates who presented diverging perspectives on the efficacy and consequences of implementing rent control measures nationwide. Housing researcher Simone Tulumello emphasized that Portugal’s public housing stock is critically low—accounting for just about 2% of the rental market—which leaves a vast majority of tenants vulnerable to escalating rents and displacement, especially in major urban centers like Lisbon and Porto. She argued that rent control could provide essential protections, preventing rapid rent hikes and stabilizing communities. Conversely, economist Susana Peralta warned that poorly designed rent control policies might inadvertently stifle investment in the rental market, discourage property maintenance, and ultimately reduce the availability of rental units. She advocated for a multi-faceted approach combining moderate rent regulation with increased incentives for developers to build affordable housing, enhanced transparency through mechanisms such as a national lease registry, and reforms to streamline dispute resolution between landlords and tenants. The discussion also highlighted the importance of balancing short-term tenant protections with long-term market sustainability, ensuring that rental housing remains both affordable and available. This debate reflects a broader European challenge as countries seek to reconcile the needs of tenants with the dynamics of housing supply and economic growth. Policymakers in Portugal face the complex task of crafting nuanced legislation that protects renters’ rights without undermining the health of the rental market, ensuring equitable access to housing for all socioeconomic groups.

https://www.theportugalnews.com/news/2025-05-19/experts-disagree-on-rent-control-measures/97721