Government approves law to speed up licensing on 12 October

The government plans to adopt a diploma to expedite housing licensing in the Council of Ministers on October 12, aiming to accelerate market supply expansion.

03 Oct 2023 min de leitura

On October 12, the government authorizes a diploma to expedite licensing.

Prime Minister António Costa made the guarantee at the start of the National Association of Portuguese Municipalities´ Congress.

The government will adopt the diploma to expedite housing licensing in the Council of Ministers on October 12, the Prime Minister indicated last Saturday (30 September 2023). The different participants in the property sector have long advocated for the acceleration of licensing processes in order to hasten the expansion in the supply of homes on the market.

"A thorough legislative reform of all licensing processes is underway. And on 12 October, the Council of Ministers will approve the diploma on simplifying construction licensing, particularly for housing," said António Costa, at the opening of the Congress of the National Association of Portuguese Municipalities.

Quoted by Rádio Renascença, the prime minister said that Portugal had to make a "qualitative leap" to eliminate contextual costs in licensing processes.

In Seixal, in front of mayors, Costa also announced a reinforcement of financial transfers to municipalities: "In 2023, the increase in transfers was 6.3 per cent and I won´t anticipate any particular secret if I say that, in the next State Budget (OE) in 2024, there will be a reinforcement of another 603 million euros."

Marcelo promulgated a decree that simplifies licensing, but he also issued warnings

On the same day that he vetoed the Mais Habitação bill, the President of the Republic issued a government directive reforming and simplifying house development licensing. Marcelo Rebelo de Sousa, on the other hand, issued a warning to the government, emphasizing the need of "compatibility" with construction safety and quality.

The Portuguese Association of Real Estate Developers and Investors (APPII) praised the enactment of the urban simplification decree, assuring that it will "continue to work to make a good piece of legislative authorisation" in a statement to idealista/news. For long years, this has been one of the most contested and desired topics in the industry, with some market players believing that delays in licensing have conditioned project implementation and a growth in the supply of homes on the market.

The government currently proposes to abolish "dispensable or redundant" licenses, authorizations, actions, and processes in town and country planning and industry, with the law now in enacted.

Text adapted from Idealista