“The Government is monitoring the concerns that have been expressed on this topic, namely by the various associations in the sector”, an official source from the Ministry of Infrastructure and Housing told Lusa.

"Right now, the matter is still under review".

The Prime Minister, António Costa, has announced an extraordinary meeting of the Council of Ministers to approve a package to support family income, given the effects of inflation.

Asked by Lusa about whether these support measures could put a brake on the increase in rents, Pedro Nuno Santos' office did not provide further details.

Rising costs

The value of rents may increase by 5.43 percent in 2023, after rising 0.43 percent this year, according to inflation figures for the last 12 months until August released by the National Statistics Institute (INE).

According to INE data, in the last 12 months until August, the average variation of the price index, excluding housing, was 5.43 percent, a value that serves as the basis for the coefficient used for the annual update of rents for the next year, under the New Urban Lease Scheme (NRAU) and which represents an additional €5.43 for every €100 of rent.

However, the effective value for updating the rents will only be determined when, on September 12, INE publishes the final data referring to the CPI for August 2022.

The 5.43 percent increase in rents in 2023, applicable to both urban and rural areas, follows the 0.43 percent rise recorded this year, following the 2021 freeze (following the negative variation in the price index ) and increases of 0.51 percent in 2020, 1.15 percent in 2019, 1.12 percent in 2018, 0.54 percent in 2017 and 0.16 percent in 2016.

By law, rent values ​​are generally subject to annual updates that are automatically applied depending on inflation. The NRAU stipulates that the INE is responsible for determining the rent update coefficient, which must be included in a notice to be published in the Diário da República by October 30 of each year to become effective.

Only after publication in the Diário da República, owners will be able to announce the rent increase to tenants, and the increase can only effectively take place 30 days after this notice.

If they do not wish to do so, landlords are not required to apply this update.