Portugal’s Rental Law Overhaul Faces Parliamentary Opposition Amid Rising Rents

Montenegro Defends Legislation Amid Resistance

Against this backdrop of rising housing costs, the Portuguese parliament scheduled a debate on the government’s proposed amendments to the tenancy law. Prime Minister Luís Montenegro defended the legislative package on September 29, 2026, stating that his administration is confident in the measures despite political resistance. “We are trustingly confident in what we are doing and that this will have a result. History is going to judge us, and the voters too, but we are not going to stop doing it,” Montenegro stated during Telejornal.

Accelerated Evictions and New Deposit Rules

The government’s proposal introduces several key changes to rental regulations in Portugal. The measures include accelerating the eviction process, allowing landlords to initiate eviction proceedings after two months of unpaid rent instead of the current three-month requirement. The proposal also removes the 2 percent cap on rent increases for new contracts relative to previous agreements and introduces a requirement for three advance security deposits instead of two, with no limit on the total value.

Socialist Opposition Cites Rising Insecurity

Parliamentary opposition threatens to defeat the legislative package before it can pass into law. The Socialist Party (PS) announced it will vote against the measure, with parliamentary leader Eurico Brilhante Dias criticizing the executive for seeking a blank check from the Assembly of the Republic that would create growing insecurity for tenants. Alongside its rejection, the PS introduced a separate bill to establish a public guarantee mechanism designed to mitigate risks in residential leasing and reinforce market confidence.

Despite the Socialist Party’s opposition, Brilhante Dias indicated that the PS would vote favorably on any request from the Government to send the bill to a parliamentary committee without a plenary vote. “If it is not voted on, it is because the Government recognizes that it did not build a majority and understands to lower it in voting. If it decides to lower without voting, the theme is different,” Dias told journalists, noting that his party has historically supported committee referrals without prior voting.

Chega Demands Revision and Challenges Executive

The party Chega also signaled opposition to the current legislative text. Party leader André Ventura stated on September 29, 2026, that the diploma in its current form does not serve the country and must not continue to face parliamentary votes without revision. Ventura challenged the executive to allow the proposal to be sent to a parliamentary committee for negotiation, threatening a vote against the measure if the Government refuses to alter the text.

Ventura argued that the government’s project creates a flawed framework that fails both landlords and tenants. He criticized the current system as punitive for property owners while failing to protect everyday citizens from rising housing costs, pointing out that renters face un-controlled rent hikes under the proposed terms. Chega also called for penalties directed at individuals in public or less public housing who intentionally withhold rent payments.

Parliamentary Showdown Looms Over Reform

With both major opposition forces threatening negative votes, the future of the government’s tenancy reform remains uncertain ahead of the parliamentary debate. Whether the executive chooses to negotiate amendments in committee or press forward with the current text will determine if the rental market regulations undergo the proposed restructuring or face a parliamentary veto.

This diploma, as it is, does not serve. And by not serving, it must not continue to be placed to the vote of the Parliament.