Income? The government is evaluating the “brake”, Marcelo is confident. What is known

OhThe data leaves no doubt: without a “brake” from the government, rents could rise by almost 7% next year. On the government side, what we know is that the Executive is in the process of evaluating, but the President of the Republic, Marcelo Rebelo de Sousa, has already declared that he is expecting “positive” measures. .

Oh the value of rents could increase by 6.94% in 2024 if the government does not establish, as it did this year, a limit on updates, according to the inflation figures for August recently published by the National Statistics Institute (INE).

The government assesses the value of the brake to be applied to rents

Prime Minister António Costa said on Wednesday that the government was assessing the value of the rent brake and would speak to landlord and tenant associations soon.

“At the moment the government is evaluating”said António Costa, speaking to journalists in Porto.

The Prime Minister also said he would meet with landlord and tenant associations to “seek the value as close as possible” to the possibilities of families and the value set by law.

“We will listen to the sector associations, we will look at what the estimated inflation is for the year,” he said, refusing to give figures and arguing that this It must be a “balanced solution” this does not discourage owners and does not create situations of social disruption.

If nothing is done, what does a 6.94% increase actually mean? In an income of 300 euros, for example, this represents an increase of more than 20 euros, but if we talk about an income of 1,000 euros the increase is already greater than 69 euros and in an income of 1,500 euros the increase already exceeds 100 euros.

Beatriz Vasconcelos | 10:44 a.m. – 09/13/2023

Marcelo relies on “positive” measures

In turn, the President of the Republic declared that he hoped that the measures that the Government will adopt in terms of rents “will be positive”, refusing to say more on this question, which he referred to the Executive .

Speaking to reporters at a hotel in Montreal, Canada, when asked if he already knows what the government’s plans are regarding rents, Marcelo Rebelo de Sousa replied: “It naturally depends on the government, who is responsible for defining the measures to be taken.

“AND I am sure that they will be positive and that they will contribute to facing a situation that is not only Portuguese, which is broader, but which also affects Portuguese society.“, added the head of state.

Do you have housing credit? The government is waiting for the ECB to move forward with its support

The Prime Minister said the government is waiting for the European Central Bank (ECB) decision on interest rates to approve, at next week’s Council of Ministers, support measures for families receiving a housing loan.

“We are waiting for the ECB’s decision so that next week’s Council of Ministers can carry out a review of the legislation in force to support families who have mortgage loans,” said António Costa.

On the sidelines of a visit to a new university residence in Porto, the Prime Minister declared that he still did not agree with the monetary policy followed by the ECB.

“I really understand that the monetary policy that has been followed is bad, but that’s all, it’s up to the European Central Bank to define monetary policy”he stated.

António Costa also stated that, depending on what will be decided by the ECB, the government will adopt a new diploma in housing credit so that Portuguese families “can have, above all, predictability in the coming years and stability in what they can foresee. in relation to what is the evolution of its performances”.

“We are all aware that we have been living for almost 20 years with historically and abnormally low interest rates, which have reached negative levels, and that the future will certainly not be like that. At the level of 2% and, therefore, the stabilization of interest rates and real estate installments must also have this reference,” he said.

Read also: The ECB decides today to raise or keep interest rates unchanged

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Alaric Cohen

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