Government gives €1.85Bn green light for 12,000 affordable homes

The Portuguese government is to provide a €1Bn package for 12,000 affordable homes. The financial package will be paid out over the next four years.

It has authorised the Institute of Housing and Urban Rehabilitation (IHRU) to “incur expenses” for the acquisition, construction, and rehabilitation of up to 12,000 homes that will form part of the Public Housing Stock at Affordable Costs by 2030.

The IHRU will assume the multi-year costs for the years 2026 to 2030, according to a schedule outlined in the decree published this Friday in the Official Gazette: up to €188,020,869 in 2026, up to €577,802,444 next year, another €386,467,636 in 2028, €408,499,462 in 2029, and the remaining €290,846,496 in 2030, with VAT to be added to these amounts.

The decree is published following the approval by the Council of Ministers on May 14 of a resolution that defines the procedures necessary for the allocation and scheduling of expenses to be incurred by the IHRU (National Housing Institute) for the purchase and construction of 12,000 houses, whether by IHRU or the municipalities, under the terms of the support programme which will also have another decree signed by the members of the Government responsible for Finance and Housing.

The Resolution stipulates that, regardless of the implementation and execution schedule of the Recovery and Resilience Plan (RRP) investment, funding for the execution of the Public Housing Stock at Affordable Costs will continue until 2030. It has been further clarified that the financial charges resulting from financing, through tax revenues, amount to a total of €511.6 million.

Source: ECO.