ALOJAMENTO LOCAL (AL): issues a temporary suspension; here, we explain more and what this means for your short term letting business.
The suspension means that no new applications for local accommodation establishments will be approved in some areas of Lisbon until further notice. This decision is part of the city’s broader strategy to manage tourism and housing affordability.
Reasons for the suspension
The suspension of authorisation for new registrations of local accommodation establishments in some areas of Lisbon will be approved due to several reasons:
- Overcrowding in certain areas: Some neighborhoods in Lisbon have become overcrowded with tourists due to an increase in the number of local accommodation establishments. This has caused inconvenience to local residents and a decrease in the quality of life.
- Impact on housing affordability: The large number of local accommodation establishments has also contributed to the rising prices of housing in Lisbon, making it difficult for locals to afford living in the city.
- Negative impact on local businesses: The high concentration of tourists in certain areas has led to an increase in rent and property prices, forcing out small, independent businesses that are unable to compete.
- Lack of regulation and control: The rapid growth of local accommodation establishments has made it challenging for the city to keep track and regulate them effectively. This has resulted in issues such as noise complaints, safety concerns, and illegal rental practices.
The communes where the ratio of AL’s to the number of residential neighbourhoods is equal to or greater than 2.5 per cent are subject to provisional suspension:
- Ajuda (3%)
- Alcântara (5%)
- Areeiro (3%)
- Arroios (14%)
- Avenidas Novas (7%)
- Belém (4%)
- Campo de Ourique (4%)
- Estrela (11%)
- Misericórdia (39%)
- Parque das Nações (4%)
- Penha de França (4%)
- Santa Maria Maior (52%)
- Santo António (26%)
- São Vicente (16%)
The provisional suspension means that new local accommodation establishments cannot be opened in these areas until the situation is reevaluated. This measure aims to ensure a balance between tourism and the needs of local residents, as well as to prevent further negative impacts on the city.
On top of the suspension for new local accommodation establishments, the Lisbon City Council has also implemented stricter regulations and penalties for existing ones. This includes requiring landlords to have a valid rental license, limiting the number of guests per property, and imposing fines for illegal practices.
The enforcement of these measures is crucial in addressing quality-of-life issues faced by local residents. Noise complaints, overcrowding, and lack of safety standards are among the concerns that have been raised due to the rapid growth of short-term rentals.
Moreover, with the rise of online platforms such as Airbnb, it has become easier for individuals to rent out their properties, leading to a decrease in availability and affordability of long-term rentals for local residents. The suspension of new local accommodation establishments aims to mitigate this issue and create a more sustainable housing market.
Conclusion
The suspension of authorisation for new local accommodation establishments in some areas of Lisbon is a significant policy change aimed at balancing tourism and housing needs. By staying informed and adapting your strategies, you can continue to thrive in the evolving landscape of Lisbon’s property market.
Have questions or need personalised advice? Feel free to reach out to our RHJ Law team for expert guidance.
