According to idealista, landlords with rents prior to 1990 can ask the Housing and Urban Rehabilitation Institute (IHRU) for compensation of up to “1/15 of the Taxable Property Value (VPT) of the leased property”, as defined in the Mais Habitação programme.
According to Lusa, which cites the Ministry of Infrastructure and Housing, the form for landlords to access the aforementioned State compensation for old rents is now available on the housing portal.
"The IHRU will provide an area dedicated exclusively to supporting landlords, on the Housing Portal, the form is available to the public from 1 July", says the Ministry.
This is compensation for landlords with old rents and whose contracts will remain in this configuration since they will not be transferred to the New Urban Lease Regime (NRAU), as determined by the Mais Habitação law.
The conditions and steps required for landlords to access this compensation are set out in a decree law published at the end of last year.
Recently, the Lisbon Property Owners Association (ALP) expressed concern, anticipating "total chaos" due to the lack of guidance for landlords on how to request compensation for old rents.
At issue are the approximately 125 thousand landlords with old rents that do not transfer to the NRAU, namely tenants aged 65 or over or with a degree of disability greater than 60%, and also the rents of households with a Corrected Gross Annual Income (RABC) of less than five annual national minimum wages.
The compensation in question provides landlords with compensation equivalent to the difference between the rent value and 1/15 of the VPT of the house.
This is where Socialism gets you: the taxpayer is having to compensate landlords whose rents have been frozen at a peppercorn rate for decades, itself the result of government policy. It's the tenants benefiting from paying a peppercorn rent who should be compensating landlords, not the taxpayer! All rents should be at market rents, fixed by the market forces of supply and demand. That's how you avoid getting your housing market into a mess.
By Billy Bissett from Porto on 03 Jul 2024, 10:29