The value of rents will increase by 6.94% in 2024, in line with inflation figures for the last 12 months until August, released by the National Statistics Institute (INE).

According to INE data, in the last 12 months up to August the average variation in the price index, excluding housing, was 6.94%, a value that serves as the basis for the coefficient used for the annual update of rents for the next year, under the New Urban Lease Regime (NRAU).

These data were released as part of the report on the Consumer Price Index (CPI), which also revealed an acceleration in the inflation rate to 3.7% in August.

At the beginning of this year, the high inflation context led the Government to create a law to limit the increase in rents in 2023 to 2%, suspending the mechanism that allows the update to be made taking into account average inflation without housing known in August.

However, for 2024 the Government decided not to apply a brake and approved an automatic update of income support of 4.94% to mitigate increases resulting from inflation and an increase in the IRS deductible amount from 502 to 550 euros.

The measure was announced by the Minister of Housing at the end of the Council of Ministers in which the decree-law was approved, reinforcing extraordinary support for families in paying rent, with Marina Gonçalves specifying that the 4.94% reinforcement will be applied with automatic benefits to those who already receive this support.

This increase of 4.94% aims to mitigate the impact of updating rents following the formula provided for in the law and which, according to the inflation value that serves as a reference, will translate into an increase of 6.94% in rents in 2024.