PM promises “specific line to convert AL to accessible rentals for young people”

Ahead of the Council of Ministers today – which is expected to announce new measures to combat the ‘brutal’ economic effects of the global response to Covid-19 – PM António Costa has made some interesting promises for the country’s youth.

First, he outlined a ‘specific line to convert properties in the short-term holiday rentals ‘Alojamento Local regime’ to accessible rentals for young people.

Then he pledged a ‘specific programme to combat youth unemployment’.

Answering questions during yesterday’s equivalent of PMQs, he said: “We are going to have a line focused specifically on converting habitations registered as Alojamento Local (AL) to long-term accessible rentals as a way of increasing the number of properties available on the rentals market in order to make housing more accessible, and offer better conditions for the autonomy of young people.

“This is the effort we have up till now for the stabilization phase”, he explained.

Further details are expected to emerge after today’s meeting.

The reaction of investors who purchased properties now registered for AL is for now unclear. T

hese are people who will have invariably spent a great deal of money on refurbishments in expectation of sizable and relatively short-term gains – something the long term accessible rentals sector does not offer.

PM Costa also outlined new support for employment. “In the programmes there will be specific measures to combat youth unemployment, particularly when it comes to qualified young people”, who, he said, “are essential for the recovery of the economy”.

As Dinheiro Vivo explains, estimates from INE, the national statistics institute, suggest young people will be the group most affected by the pandemic.

Right now, youth unemployment is running at above 20%, and there are clearly signs this will continue to increase.