Portuguese Court Rejects Lisbon Rental Referendum, Housing Movement Pushes Forward
Recently, the Portuguese Constitutional Court rejected the proposal for a referendum regarding short-term rental properties in residential buildings in Lisbon. This decision, made public after a 25-day review period, has sparked strong reactions. The court stated that the initiative was not legally sound due to a lack of proper control over the required signatures for the petition.
The referendum proposal, initiated by the Housing Referendum Movement (MRH), aimed to challenge the growth of short-term rentals, particularly those in residential buildings. The MRH argued that the rapid increase in short-term rentals was contributing significantly to Lisbon's housing crisis. They reported gathering 11,000 signatures from local residents who claimed that over 6,000 people had been displaced due to skyrocketing rents, primarily driven by the influx of short-term rentals. Despite not seeking a complete ban, the group emphasized that restricting these rentals within residential buildings would alleviate the city's housing shortage and help residents remain in their homes.
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In a session held at Lisbon’s Municipal Assembly on December 3, 2024, the proposal was debated before the court’s decision came down. ALEP, the association representing short-term rental owners in Portugal, supported the ruling. Eduardo Miranda, ALEP's president, claimed that the referendum proposal was fundamentally flawed and contrary to the law. The decision was hailed by rental owners as a victory, while the MRH, disappointed by the court’s stance, promised to push forward with a new approach and seek a re-evaluation by the court.
The case comes in the wake of broader changes in Portugal’s rental laws. In November 2024, the Portuguese government passed a new decree-law that rolled back previous restrictions on short-term rentals. This decree lifted mandatory license renewals and imposed fewer limitations on new registrations, returning the power to approve or deny licenses to local municipalities instead of central authorities. The move had been part of the government's effort to balance the needs of both the short-term rental market and the local population facing a housing affordability crisis.
The rejection of the Lisbon rental referendum by the Constitutional Court reflects the ongoing tension between residents concerned about affordability and the booming short-term rental market. While many continue to push for stricter regulations, this decision signals that the debate over Lisbon's housing crisis is far from over. It remains to be seen how both sides will maneuver in the future as the city seeks to find an equilibrium between tourism and the housing needs of its residents.
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