Portugal’s government has approved a new set of housing measures aimed at unlocking thousands of properties tied up in legal disputes and underused assets, as part of a broader effort to increase housing availability. The reforms, approved in a Council of Ministers meeting, focus on resolving undivided inheritances more quickly and simplifying eviction procedures in cases of tenant default. Officials say the changes are designed to address structural inefficiencies in the housing market that have left a significant number of homes and land parcels unused across the country.
At the center of the proposal is a mechanism to accelerate the division or use of properties held in undivided inheritance, where disagreements between heirs often prevent any action. The government plans to introduce stronger arbitration tools outside the traditional court system to resolve these disputes more efficiently. doing so, authorities aim to ensure that a single individual can no longer block the sale, rental, or productive use of shared assets. The measure is expected to bring more residential properties and rural land back into active use.
Government officials have rejected concerns that the reforms could undermine private property rights, emphasizing that protections for family homes and minor heirs will remain in place. The objective, according to policymakers, is to restore balance ensuring that existing laws do not unintentionally encourage inaction or disputes that limit housing supply. In parallel, the reforms seek to reinforce contractual freedom between landlords and tenants, with the goal of increasing confidence among property owners and encouraging more listings in the rental market.
The package also includes steps to streamline eviction processes, particularly in cases where tenants fail to meet payment obligations. Authorities argue that prolonged legal procedures have discouraged landlords from renting properties, contributing to supply shortages. To address this, the government plans to introduce faster judicial pathways while also creating an emergency housing fund to support vulnerable individuals. Officials have stressed that social support responsibilities should be handled the state rather than placed solely on property owners.
Data cited the government highlights the scale of the issue, with an estimated 3.4 million rural properties currently tied up in undivided inheritances, representing a significant portion of the national land base. Many of these areas are neglected, increasing environmental risks such as forest fires. In addition, studies suggest that around 250,000 habitable homes remain empty, while another 130,000 properties could enter the market after repairs. Combined, these figures point to a large pool of potential housing that remains inaccessible under current conditions.
The reforms are part of the government’s third package of housing measures, reflecting growing pressure to address affordability and availability challenges in Portugal. targeting legal bottlenecks and market disincentives, policymakers hope to activate dormant assets and improve overall market efficiency. The proposals will now be presented to political parties for consultation, with plans to submit them to Parliament the end of March as part of a broader legislative process.
