Affordable Rental foresees maximum rents between 200 euros for T0 and 1,700 euros for T5 – The Economic Journal

The maximum rent price in the Affordable Rental Program can vary between 200 euros for typology T0 and 1,700 euros for T5, depending on the position of the counties by echelons, in which only Lisbon is in the highest values.

According to the ordinance published today in Diário da República, which determines the income limits applicable under the Accessible Rental Program, the positioning of the 308 Portuguese municipalities by six levels may be subject to "annual update, by order of the Government members responsible for areas of finance and housing, based on the variation in the median value of rents per square meter of new lease agreements released by the National Statistical Institute (INE). "

Intended to encourage the provision of rental housing at reduced prices, the Accessible Rental Program will enter into force on July 1, allowing landlords to benefit from a total exemption from taxes on "property income resulting from leases or sublease (IRS) and Corporate Income Tax (IRC), provided that the rent is less than 20% of the market prices and the tenants do not have to bear an effort rate of more than 35%.

Based on the table that divides the municipalities into six tiers, listed by increasing value, Lisbon is the only municipality that is positioned in step 6 with higher incomes, where the limit of the monthly rent price for typology T0 is 600 euros, T1 up to 900 euros, T2 up to 1,150 euros, T3 up to 1,375 euros, T4 up to 1,550 euros, T5 up to 1,700 and superior to T5 up to 1,700 euros plus 150 euros for each room above T5.

In the pre-Lisbon stage, there are the municipalities of Cascais, Oeiras and Porto, where the limit of the monthly rent price for typology T0 is 525 euros, T1 up to 775 euros, T2 up to 1,000 euros, T3 up to 1,200 euros, T4 up to 1,350 euros, T5 up to 1,500 and superior to T5 up to 1,500 euros plus 100 euros for each quarter above T5.

In step 4 are the counties of Albufeira, Almada, Amadora, Castro Marim, Funchal, Lagos, Loulé, Loures, Matosinhos, Odivelas, Sintra and Tavira, with the maximum price of rent ranging from 400 euros to T0, 775 euros for T2 and 1,125 euros for T5.

Most of the 308 Portuguese counties are in step 2, where the limit of the monthly rent price for typology T0 is 250 euros, T2 up to 450 euros and T5 up to 675 euros, according to the Government's decree.

Without identifying the counties that occupy step 1, only mentioning that they are all those that are not included in the following categories, those responsible for the Finance and Infrastructures and Housing folders defined that the maximum income price in the step with lower values ​​can vary between 200 euros for T0, 350 euros for T2 and 525 euros for T5.

"The general monthly rent price limit for a part of the dwelling corresponds to 55% of the general limit of the monthly rent price applicable to the T0 typology for the county where the housing is located," the Government established.

Under the Accessible Rent Program, in addition to the regulation of the general rent price limits by typology, two other regulations were published regarding the registration of applications and the registration of housing, which included the minimum conditions for housing safety, health and comfort.

Regarding the registration of applications, the Government has defined the maximum annual income for the purposes of eligibility of housing units, indicating that an aggregate with a person can not exceed the gross annual income of 35,000 euros, with two people the maximum income is of 45,000 euros and for more than two people is 45,000 euros plus 5,000 euros per person, and the minimum occupation by typology, stating that it has to be "one person per room, regardless of the modality of availability of that same accommodation."

Managed by the Institute of Housing and Urban Rehabilitation (IHRU), the Accessible Rental Program establishes that lease agreements have a "minimum term of five years, renewable for a period stipulated between the parties." If the contract has the purpose of temporary residence of students of higher education, the lease term may be shorter than that established, but establishing "for a minimum duration of nine months".

As requirements, the program determines that "the specific rent price limit applicable to a dwelling corresponds to 80% of the reference value of the rent price of that dwelling", considering factors such as area, quality of accommodation, energy certification, location and value median of incomes per square meter, released by the National Statistical Institute (INE).

Thus, in the lease agreements to be concluded under the Affordable Rental Program, the monthly rent price must correspond to "an effort rate that is in the range of 15% to 35% of the average monthly income (RMM) of the household "And the type of accommodation must observe a minimum occupation depending on the size of the housing unit.

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