Low Income Housing Finance and
Subsidies: the Case of Portugal
Romana Xerez
ISCSP - University of Lisbon
Brazil-EU Dialogue Seminar on Low Income Housing Finance And
Subsidies
LSE, 25th September, 2014
How does Portugal provide low income
housing finance and subsidies?
Portugal
The Case of Portugal
Housing: a social right after the revolution
Constituent assembly of 1975-1976
Housing and social rights
The Case of Portugal
Private
1983 Public
1940s Public
Limited
rental
Houses
Social
housing
Housing
controlled
Cost
1988
Right to
Buy
LTV 100%
Housing Saving
Accounts
(1986-89)
Subsidised
credit (19982002)
The Case of Portugal
What does social housing mean in Portugal?
• Housing promoted by local councils,
Cooperatives of Economic Housing, Private
Institutions of Social Solidarity and the private
sector with financial support from the State
and intended for sale or rental.
The Case of Portugal
• Government: legislation; housing allowances.
• Institute of Housing and and Rehabilitation
(IRHU).
• Municipalities: providing land, housing
allowances and management and
maintenance (municipalities companies).
• Cooperatives: affordable housing for rental or
ownership
The Case of Portugual
Rents
• Borrowing capacity 10% to 25%.
• 1983 social housing Act: social rent (renda
social).
• 1993 supported rent (renda apoiada)
• New Urban Lease Regime (NRAU) allowance
benefiting low-income households with rental
contracts prior to 1990.
Source: CECODHAS 2012
United Kingdom
Sweden
Spain
Slovenia
Slovakia
Romania
Portugal
Poland
Netherlands
Malta
Luxembourg
Lithuania
Latvia
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Republic
Cyprus
Bulgaria
Belgium
The Case of Portugual
Social Housing Stock in Europe
35
30
25
20
15
10
5
0
The Case of Portugual
•
•
•
•
•
•
118,000 social housing dwellings
Social housing: occupied under a lease 95.5%.
Vacant 4.1%.
Illegally occupied 0.4%.
25 600 applications for social housing.
Average monthly rent 60 €.
The Case of Portugal
Demographics of social housing tenants
• Low income households, gypsies, unemployed
slightly overrepresented, African immigrants,
old people, low educational levels, as well as
better off tenants.
How can we learn from the case of Portugal?
• Social mix versus segregation and peripheral
location.
• Middle classes.
• Rental systems versus homeownership.
• Municipal companies, cooperatives, public/private.
• Alvalade case study.
• New welfare state: housing as a cornerstone.
• More research is needed to deepen the
understanding of social housing in Portugal.
Thank you!
rxerez@iscsp.ulisboa.pt