Socialist Party leader José Luís Carneiro said in Guarda on Friday that his party is willing to negotiate a housing solution with social justice.
Carneiro stated that the government of Prime Minister Luís Montenegro, along with parliamentary allies Chega and the Liberal Initiative, must rethink the tenancy legislation submitted to the Assembly of the Republic. He argued that the draft bill removes protections from young people, vulnerable families, and elderly citizens.
Carneiro, who serves as the secretary-general of Portugal's main centre-left opposition party, made the comments outside the Episcopal Palace in Guarda after meeting with Bishop José Miguel Pereira. Guarda, an inland district capital situated near the Serra da Estrela mountains, hosted the party leader as national debate intensified over climbing property prices.
Addressing an appeal from the President of the Republic for political parties to reach consensus on the housing crisis, Carneiro commended the head of state. He said the president had rightly highlighted that Portugal needs a political rather than a police response to the housing crisis, urging the government to heed that intervention and seek genuine cross-party negotiations.
Parliamentary Dispute Over Tenancy Proposals
Carneiro directed sharp criticism at André Ventura, the leader of the right-wing party Chega, accusing him of attempting to escape responsibility for enabling the administration's housing measures. He noted that Chega lawmakers had approved a 2,300-euro monthly threshold proposed by the government for moderate rents and had allowed the broader tenancy legislation to advance through abstention.
The Socialist leader said Ventura was attempting to retract previous positions and shift accountability to others, remarking that the Chega leader faced a difficult political dilemma of his own making. Carneiro stressed that Chega, the Liberal Initiative, and the governing Democratic Alliance coalition were solely responsible for passing the measures through Portugal's unicameral parliament in Lisbon.
He insisted that the executive must show readiness to withdraw its draft legislation and draft an alternative text that incorporates proposals from the Socialist Party and other opposition groups. Without significant revisions, he warned, the opposition would not endorse the government's approach to the rental sector.
Rental Caps and Upfront Costs for Tenants
At the core of the dispute is the government's plan for moderate rents, which sets qualifying rent levels at up to 2,300 euros per month. Carneiro questioned who in Portugal could afford such prices, arguing that designating 2,300 euros as a moderate rent was entirely detached from the financial realities of ordinary working households.
He explained that the legislation put forward by the Democratic Alliance would also increase initial upfront costs for people entering rental agreements. Under the proposal, prospective tenants would be required to advance three months of rent rather than the two months stipulated under existing rules.
With monthly rents benchmarked at 2,300 euros, Carneiro calculated that a young person or family entering a new tenancy would face an immediate upfront outlay of roughly 7,000 euros. He told reporters that demanding such sums effectively locks ordinary citizens out of the formal housing market.
Market Liberalization and Public Guarantees
Carneiro warned that the underlying goal of the government's legislative package is to liberalize the rental market by removing limits on rent increases and making evictions easier. While emphasizing that he intends to protect tenants and provide security for landlords, he stated firmly that he does not support the interests of real estate investment funds.
To strike a fair balance between property owners and renters, Carneiro pointed to alternative mechanisms proposed by the Socialist Party. These include a state-backed public guarantee scheme specifically designed to protect young people aged 18 to 35, safeguard middle-class families, and shield elderly tenants from losing their homes.
For other market segments, Carneiro called for the creation of targeted insurance products to cover landlords against unpaid rent and property damage while keeping tenants secure. He noted that similar insurance-based models are already operating successfully in European countries such as Spain and France.
Dispute Over Rising Housing Costs
The Socialist leader also rejected accusations blaming the previous Socialist administration for the rapid escalation of rental costs across Portugal. Calling those claims untrue, he asserted that policies introduced by the current centre-right executive had caused rents to surge by 34 percent in recent months.
Carneiro recalled that his party had implemented a statutory ceiling on rent increases in 2023 to protect tenants from sharp inflationary spikes. He said the current government is now moving to dismantle that safeguard, leaving renters exposed to unchecked price hikes.
Reiterating his willingness to negotiate, Carneiro declared that any workable national agreement must be grounded in social justice and fundamental constitutional rights. He concluded that the government must withdraw its current bill, abandon the 2,300-euro moderate rent cap, and work with parliamentary parties to craft an equitable housing policy.
