Commenting on the recent housing protests, Prime Minister Luís Montenegro argues that the government is taking measures to resolve the problem, but that it is not possible to recover in a few months from a decade of underinvestment, Executive Digest reports.

Montenegro stated that 32,000 homes have already been delivered under a housing programme, while insisting that the construction of new homes takes time.

“Understanding, listening, but also telling people that we are solving the problem. And we really are,” said Montenegro.

The Prime Minister acknowledges that Portugal faces a structural problem, which has persisted for several years, but rejects the notion that it should be possible to see immediate results after a long period of reduced housing construction.

“If we’ve built practically no houses for 10 years, can anyone seriously say that the houses will be ready tomorrow?” Montenegro asked, adding: “I can’t build houses with a snap of my fingers. And I can’t recoup 10 years of disinvestment in 10 months.”

The Prime Minister also highlighted the results of the previous government’s housing programme, which, according to him, had a smaller scope and less funding when his government took office.

“We have already delivered 32,000 homes, in a program that, when we came to power two and a half years ago, only had 26,000 and funding for 16,000,” he said.

Montenegro also argued that the government had managed to double its capacity for intervention in the housing sector directly dependent on the state, according to Executive Digest.

The Prime Minister’s statements did not include a breakdown of the housing units that have been delivered, financed, or are still under construction.

Portugal’s structural housing shortage

According to the European Commission’s 2026 Country Report for Portugal, the country is experiencing a structural shortage of social and affordable housing, with social housing accounting for approximately 2% of the country’s housing stock, compared with an OECD average of around 7%.

Although public investment in housing has increased in recent years, particularly through funding from the EU’s Recovery and Resilience Plan (RRF), the European Commission still warns that a significant shortage remains.

The report emphasises the need for long-term financing to expand and maintain public housing, along with more effective housing assistance for vulnerable households.

Housing construction takes time

Montenegro also listed several legislative and administrative changes that, according to him, should accelerate housing construction in the coming years.

Among the measures listed are changes to licensing processes, public procurement rules, and legislation relating to the Court of Auditors.

“Today we have the administrative conditions in place to make the processes faster,” Montenegro said.

The Prime Minister also highlighted tax changes and pointed to the application of a reduced VAT rate of 6% in construction, under the applicable regime.

“We expect the houses to be built,” he stated, while also insisting that increasing the housing supply takes time.

Support for young people

Montenegro also highlighted measures aimed specifically at young people, including rental support through the Porta 65 programme.

According to the Prime Minister, the number of beneficiaries of the programme is currently much higher than it was two and a half years ago.

Regarding access to homeownership, Montenegro also recalled the existence of tax benefits, including exemption from the Municipal Property Transfer Tax (IMT) and Stamp Duty for young people who meet the requirements set out in the legislation.

Montenegro also highlighted the state’s public guarantee for housing loans, which is designed to facilitate bank financing for the purchase of a home.

“Which means that the down payment to buy a house today is not necessary,” he stated, referring to cases where the guarantee allows buyers to obtain financing without the initial down payment usually required by banks.

Montenegro responds to protests

Montenegro acknowledged that the recent housing protests reflect real difficulties in Portugal but appealed for public debate not to be limited to protests.

“There are many organisations, people expressing their positions, even political parties,” he said, encouraging elected representatives to respond to citizens’ concerns through democratic institutions.

“I invite you to collaborate in this effort, putting the substance of the policies on the table,” he said.

“There are certainly protests: we’ve had a structural problem for a long time,” the Prime Minister acknowledged.

Montenegro insists that the government is addressing the root causes of the housing crisis and that the administrative, fiscal, and financial changes should lead to an increase in the supply of housing, albeit without immediate results.

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