Lisbon Approves Suspension of New Local Accommodation Licenses

1. Suspension of New Licenses

Decision: The Lisbon City Council has decided to immediately suspend the issuance of new licenses for local accommodation units.

Objective: This suspension will remain in effect until a new regulation governing local accommodation in the city is approved. The aim is to prevent the creation of additional accommodation units that could worsen the situation in the real estate and housing market in Lisbon.

2. Proposals Under Debate

PS Proposal: The Socialist Party (PS) presented a more detailed proposal, which not only called for an immediate suspension of new licenses but also specified that this suspension would apply in neighborhoods where the proportion of local accommodation is equal to or greater than 2.5%. Furthermore, if the proportion reaches or exceeds 5% across the municipality, an absolute containment zone would be created.

Carlos Moedas’ Proposal: The administration of Carlos Moedas, the mayor, proposed a simpler plan that merely called for the suspension of new licenses throughout the municipality until the new regulation comes into effect. This proposal was more straightforward and did not include the specific control measures proposed by the PS.

3. Voting and Approval

In the vote, the PS proposal was unanimously approved in the second round, receiving support from council members of the PS, Livre, PCP, Bloco de Esquerda, and Cidadãos por Lisboa. This demonstrates a consensus among different parties on the need to regulate local accommodation.

4. Impact of the New Law

The new local accommodation legislation that comes into effect may lift the current suspension on new licenses in 20 of the 24 neighborhoods in Lisbon. Therefore, the immediate suspension is a preventive measure to control the number of new accommodation units until a new regulation is in place.

5. Concerns and Criticism

Ghost Licenses: Councilwoman Joana Almeida raised concerns that the PS proposal could facilitate the creation of "ghost licenses" — licenses that are registered but not actually used for accommodation.

Current Ratio: The current ratio of local accommodation in Lisbon is 7.5%, and the concern is that, without proper regulation, the situation could worsen, making it even more difficult to grant new licenses.

6. Next Steps

The City Council plans to quickly bring a consensus proposal for regulation to discussion, with the aim of creating a clearer and more effective framework for local accommodation in Lisbon.

These points illustrate how the Council is trying to balance the housing needs of the local population with tourist demand, reflecting concerns about the impact of tourism on the city’s real estate market.

The information provided is of a general nature and does not substitute for consulting a lawyer.

Consult a lawyer and adopt a preventive approach in legal matters.

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