The INE (National Institute of Statistics) released today the official rates of inflation, one of which is the annual increase of rents coefficient.
The final number is 6.94% – close to the 7% that had already been predicted by the owners associations, so rents next year could see large monthly increases: a rent of 500 euros could increase 34.70 euros a month, and a rent of 1000 euros could rise by 69.4 euros/month, which works out at 416.40 euros and 832.80 euros a year respectively – almost the equivalent of an additional monthly rent.
The Government can act to prevent these increases if it chooses to re-implement a rule already in effect this year, when a special diploma limited rent increases to a maximum of 2% (instead of the 5.43% determined by inflation), with landlords being compensated for the difference through tax deductions.
Official inflation rates published here:
https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=594740864&DESTAQUESmodo=2