Many residents feel that short term rentals make it harder to find affordable housing. Lisbon City Council has decided to ban new licenses for Local Accommodation (AL) properties such as Airbnb rentals. This decision is meant to protect the city’s housing market. This vote passed with full support from the council and now it needs approval from Lisbon’s Municipal Assembly.
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Local Accommodation Licenses Ban For New Short-Term Rentals
Local Accommodation licenses have been a major concern in Lisbon. Short term rentals have spread quickly across the city. Many homes that were once long term rentals are now rented to tourists. This increase has caused several problems for residents. With more homes used for tourism, fewer homes are available for locals which raises rental prices in popular neighborhoods.
Many residents say short term rentals change the way their neighborhoods feel. Areas that were once community focused are now filled with tourists. This makes some long term residents feel like strangers in their own neighborhoods. Some renters have also faced eviction because landlords prefer to rent to tourists for higher profits. This is making it harder for people to find affordable housing in the city.
Mayor And City Council Decision
The new AL license ban aims to give Lisbon more control over its housing market. The City Council will stop giving out new AL licenses across the city with this change. Mayor Carlos Moedas, who leads Lisbon’s government stressed the need to act quickly. He said Lisbon’s rate of AL growth was galloping and that immediate action was necessary.
There were two proposals at the council meeting. The Socialist Party (PS) suggested that if AL units reach 5% of Lisbon’s total housing then no new licenses should be issued. Today AL rentals make up about 7.5% of housing in Lisbon. This means that new licenses will stop right away under the PS plan. The number of AL properties in Lisbon has increased to 19,000 from 500 between 2010 and 2019.
The Novos Tempos coalition proposed a simpler ban on all new AL licenses. After a vote, the council agreed to pause all new licenses for the next six months. During this time, the council will create long-term regulations for AL properties.
Mayor Moedas said during the discussion:
What I propose is a total suspension, zero new registrations of AL establishment throughout the municipality of Lisbon until a regulation comes into force. I think it’s the simplest. As we have alternative proposals, I hope that this one, which is extremely simple, just the suspension of authorisation for all new registrations, can be agreed upon by everyone. And then we will bring a proposal with new regulations, and then we can discuss the limits that we think are necessary to curb this amount of registrations
Mayor Moedas believes that pausing all new licenses is the simplest way to move forward. He feels this six-month suspension will give the council time to find the best solution. Once the suspension period ends then the council hopes to have new rules in place to protect housing for locals while still welcoming tourists.
How This Ban Will Affect The Housing Market In Lisbon
The ban is a big step for Lisbon. Many residents have struggled with finding affordable housing due to the increase in short-term rentals. Long-term rentals have become more expensive with demand from tourists driving up prices. This trend is especially hard on low and middle income residents who face higher costs and fewer choices.
Lisbon is not the only city facing these issues. Many popular tourist cities, such as Barcelona, New York, and Amsterdam, have also struggled to balance short-term rentals with local housing needs. These cities have introduced similar regulations to protect housing for residents. Lisbon’s new approach follows this trend and aims to balance tourism with the needs of its citizens.
The immediate effect of the ban could be positive for Lisbon’s locals. If more long-term rentals return to the market then residents may find more housing options. However, it may take time before prices stabilize. Still, this ban is a step toward a more balanced housing market in Lisbon.
The council has voted in favor of the ban so it will move to the Municipal Assembly for final approval. The assembly meeting is expected to take place soon and it will likely happen after Portugal’s new national AL law takes effect.
Once the ban is approved, Lisbon will use the six-month period to develop clear regulations for AL rentals. The council wants to find a fair solution that allows Lisbon to stay a top travel destination while ensuring residents have access to housing.
Not everyone agrees with the ban. Some people believe short-term rentals help Lisbon’s economy by creating jobs in hospitality and retail. AL rentals bring in money from tourism and boost local businesses.
