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CNN —
As Europe buckles under the weight of ever-increasing tourism, and locals in city after city are squeezed out by short-term rental properties, one country has decided to impose legal restrictions on its housing market.
Portugal’s Mais Habitação (More Housing) law, which was approved in parliament on July 19, seeks to make the housing market more of an even playing field for residents – but its broad brushstrokes are threatening the future of hostels and guesthouses, as well as vacation rentals, say those in the industry.
The law states that properties classed as “alojamento local” – “local accommodation,” which includes guesthouses of under 10 rooms, as well as hostels and Airbnb-style properties – will now be subject to strict new rules.
New openings will effectively be blocked until 2030, and after that, operational licenses will have to be renewed every five years. They will also be subject to hefty new taxes that, some say, will see many family-owned businesses going bust, transforming the country’s growing tourist industry.
The law – proposed and approved by Portugal’s ruling PS party – seeks to address the housing crisis in Portugal. A spokesperson for the country’s housing ministry told CNN in a statement, “The Portuguese government defined housing as one of its top priorities in 2016,”...
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