Land Law amended to enable housing construction on rural land

The Government approved a diploma in the Council of Ministers that flexibilizes the Land Law, allowing municipalities to release land, particularly rural land, for the construction of public housing or housing at "moderate prices".

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The Land Law is to be simplified with the aim of enabling Municipal Councils to release land for housing construction, particularly land classified as rural, allowing construction, building, and urbanization. Increasing the housing supply is the determining objective of this exceptional regime.

This is a measure provided for in the Build Portugal program, announced last May, which aims to "flexibilize land use rules by creating an exceptional regime that allows, by decision of municipal bodies - ultimately the municipal assembly - construction, building, and urbanization where it is currently not possible, specifically in land classified as rural and land classified as REN [National Ecological Reserve] and RAN [National Agricultural Reserve], but not in their most critical zones", explained the Minister of the Presidency, António Leitão Amaro.

The amendment to the Land Law aims to promote various forms of affordable housing. Among the purposes established in the Government's initial program are the promotion of controlled-cost housing, affordable rental, temporary accommodation (BNAUT reinforcement), and the provision of housing for specific public functions, such as teachers, security forces, agricultural, industrial, and tourism sector workers.

According to the Government, 70% of this construction is mandatorily designated for public housing or moderate-value housing, excluding luxury housing.

António Leitão Amaro also informed that this measure will protect the most sensitive natural values, including the Natura Network (areas for the conservation of habitats and endangered wild species), high-potential agricultural land, and other risk zones, with "the most sensitive spaces (...) excluded from this possibility".

The Decree-Law promotes an amendment to the Legal Regime of Territorial Management Instruments (RJIGT), and aims to respond to the growing need for dignified and affordable housing, and now goes "to hearings with the National Association of Portuguese Municipalities and other entities".

"The aim is to guarantee a special reclassification regime for urban land, the majority of whose area must be mandatorily allocated to public housing or moderate-value housing. The concept of moderate-value housing, now created, seeks to cover access for the middle class, weighing median values of local and national markets to ensure social justice. This exceptional regime, applicable by deliberation of municipal bodies, does not cover the most sensitive areas in terms of risks, nature conservation, and high agricultural potential", states the Council of Ministers Communiqué of November 28, 2024.

This legislative amendment implies an important change in land-use planning policy, giving municipalities a more significant role in promoting housing.

Article by Isabel Meireles dated December 3, 2024