New Hope for Housing: Government Open to Land Law Revisions

The Minister for Infrastructure and Housing, Miguel Pinto Luz, reiterated on Wednesday (January 22, 2025) that the government is “completely open to having a serious discussion” about the land law, expressing a willingness to “adapt and improve it.” Speaking during a parliamentary hearing requested by the Left Bloc (BE) to address changes to the Legal Framework for Territorial Management Instruments (RJIGT), Luz emphasized, “We have no prejudice on this matter, nor do we claim to hold absolute truth.”

The land law has sparked significant controversy. The decree in question – Decree-Law No. 117/2024 – was published in the Official Gazette on December 30, 2024, and is set to take effect at the end of January. A parliamentary review of the decree has been requested, and the matter will be debated this Friday (January 24, 2025).

During the parliamentary session, Miguel Pinto Luz acknowledged that the land law is not a “silver bullet that will solve all problems” but argued that it “will help lower housing prices.”

“There aren’t enough plots of land, and we need to increase the available stock while reducing prices. At the same time, we need to expand the supply of available housing,” said the minister.

He also noted that private developers are unwilling to focus exclusively on public housing projects. “If the idea is to build only public housing, it won’t work because no private developer will dedicate their land solely to public housing,” he argued, according to Jornal de Negócios. “What we’ve seen so far hasn’t worked. Affordable housing (HCC) with private developers remains marginal, and our rigorous analysis of the country and market indicates that prices could drop by 20%,” he added.

According to the publication, the concept of “moderate cost,” introduced by the government in the amendments to the RJIGT, is expected to be one of the points revised following the parliamentary review of the decree. During the hearing, Minister Pinto Luz reiterated the government’s openness to revisiting these concepts, while Socialist Party MP Maria Begonha stated that “with the original concept of moderate cost, the PS cannot support this decree.”

The government amended the RJIGT to allow construction on previously restricted land, including areas within the National Agricultural Reserve (RAN) and National Ecological Reserve (REN). The justification for this change is to increase the supply of land for housing construction while ensuring the preservation of protected areas.

Land Law Changes Criticized as a “Nail in the Coffin” for Territorial Planning

Meanwhile, the head of the Sustainable Construction Portal (PCS), Aline Guerreiro, has strongly criticized the proposed changes to the land law, calling them “another nail in the coffin for territorial planning.” She argued that the amendments will not lower housing prices.

In a statement sent to Lusa, Guerreiro warned that “changing the law to allow construction on rural land does not solve the housing crisis in Portugal. The issue is not a lack of houses but the financial inability of Portuguese citizens to afford quality, thermally comfortable homes.”

“The solution is definitely not to pave over more land, especially in rural areas,” she stressed.
IN: idealista.pt

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