Miguel Marques dos Santos has written an article for Magazine Imobiliário entitled ‘The unfeasability of built to rent – an ideological issue’, in which he analyses building for rent as a solution to Portugal's housing crisis.

In this article, Miguel Marques dos Santos points out that, unlike in the last five decades, there is now an almost generalised consensus in Portuguese society about the importance of building for rent. This activity is seen as essential to overcoming the housing crisis and offering hope to those who need a home but currently don't have access to one.

Despite this consensus, the author argues that the conditions necessary to attract investors and increase the supply of affordable housing have not yet been effectively met. The VdA lawyer identifies three main factors that keep investors away: the rental regime, which he describes as ‘unpredictable and constantly changing’; the sluggishness of public services, namely ‘urban licensing’ processes and ‘court decisions’; and, finally, the tax burden which distorts ‘the cost price of projects, and, by this measure, make it impossible to put affordable housing projects on the market’.

To solve these problems, Miguel Marques dos Santos suggests overcoming ideological preconceptions, including reforming the rental regime, modernising public administration and aligning the tax burden with European standards. Unlike what happens in other sectors where the state needs large resources to solve problems, in rental housing capital and investors are available to invest. ‘It only requires political movers and shakers to shed their ideological prejudices and take the necessary measures for this to happen’, he concludes.

  • This article is available here.