By Malundo Kudiqueba –Birmingham, July 17, 2025
In a tense exchange in Parliament today, Prime Minister Luís Montenegro addressed growing concerns over housing prices in Portugal, arguing that the ongoing surge in costs is directly linked to the shortage of available homes on the market. Responding to a pointed and ironic remark from Mariana Mortágua, the coordinator of the Left Bloc (BE), who suggested that the Prime Minister “stop working” since prices keep rising regardless, Montenegro defended his government’s stance by stating: “If there are no more houses on the market, we will not stop price increases.”
The Prime Minister’s comments underscore the central argument of his government’s housing strategy, which places supply at the heart of the crisis. He reiterated that without a significant boost in housing construction and availability, any attempts to contain prices would be merely superficial.
Portugal continues to face one of the most acute housing crises in Europe, with urban centres like Lisbon, Porto, and even smaller cities witnessing record-high rents and sale prices. Middle- and lower-income families are being priced out of neighbourhoods where they’ve lived for decades, while young professionals struggle to find affordable options to start independent lives.
The government’s critics, particularly from the Left Bloc and other left-wing parties, argue that the current policies favour developers and speculative investment, rather than protecting tenants and prioritising affordable housing.
Mariana Mortágua, in her intervention, criticised the government’s inaction and sarcastically suggested that perhaps the Prime Minister’s efforts were part of the problem. The irony was not lost on the chamber and drew murmurs of both amusement and disapproval from fellow MPs.
In response, Montenegro doubled down on the importance of increasing supply as the only sustainable solution to the crisis. He pointed to ongoing government plans to incentivise housing construction, streamline permits, and release public land for residential development.
“What we need is not less government action, but more construction, more planning, and more housing on the market,” said the Prime Minister. “Only then will we see real downward pressure on prices.”
While the supply-side argument has support among some economists and real estate experts, housing advocates argue that it does little to address the immediate needs of vulnerable populations. They point out that even when new housing is built, it often targets the luxury or tourist rental markets rather than long-term, affordable family homes.
The debate comes at a time of mounting public pressure. Recent protests in Lisbon, Coimbra, and Faro have highlighted the growing frustration of citizens who feel left behind by soaring property values and stagnant wages. Calls for rent caps, public housing investment, and regulations on foreign property purchases are growing louder.
Analysts note that while increasing housing stock is essential in the long term, short-term solutions—such as stricter rental regulation and support for low-income families—are necessary to prevent social unrest and displacement.
Meanwhile, Montenegro’s remarks sparked mixed reactions. Supporters praised his straightforward acknowledgment of market realities, while critics accused him of washing his hands of responsibility and failing to show empathy for those hardest hit.
With the summer recess approaching, housing remains one of the defining political issues of the year. The government is expected to unveil a new phase of its national housing plan in September, with expectations that it will address not just supply, but also affordability and tenant protection.
However, without consensus in Parliament and amid growing social tension, Montenegro’s government faces an uphill battle to deliver meaningful results.
For now, his message is clear: until the market sees more homes available, prices will continue to rise—and so will the political heat.
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