Western European country Portugal has decided to end the controversial golden visa scheme and control house rents.
Portugal announced a sweeping package to tackle the housing crisis, including ending its controversial “golden visa” scheme, banning new licenses for Airbnbs and other short-term holiday rentals.
Portugal is one of the poorest countries in Western Europe, where rents and house prices are skyrocketing.
Last year, more than 50 percent of workers earned less than 1,000 euros a month while in Lisbon alone, rents are set to rise by 37 percent in 2022.
Portugal’s inflation rate of 8.3 percent has exacerbated the problem. Housing groups say low wages, a booming property market, policies encouraging wealthy foreigners to invest and an economy dependent on tourism have made it difficult for locals to rent or buy a home for years.
Prime Minister Antonio Costa said that the crisis is now affecting all families and not just the weaker sections. He added that a mechanism will be introduced to control rent hikes and the government will offer tax incentives to landlords who convert tourist properties into rental housing for locals.