The notice from the National Institute of Statistics (INE) that publishes the rent update coefficient confirms that rents can increase by as much as 6.94% in 2024. This has already been published in the Official Gazette.
The rent update coefficient is based on the average inflation of the last 12 months, without housing, recorded in August, and which this year was 6.94%, the highest value since 1994.
Unlike what happened this year, in which a limit of 2% was imposed on the increase in rents (housing and others), for 2024, the Government decided to reinforce rent support in the case of families with incomes up to the 6th bracket of the IRS and with an effort rate (percentage of monthly income channeled to rent) above 35%.
This reinforcement translates into the automatic updating of the extraordinary rent support, adding 4.94% of the monthly rent value, being granted even if this implies exceeding the current maximum amount of support (which is 200 euros).
In practical terms, and according to a simulation by the Ministry of Housing, this means that a person with a salary of 1,600 euros per month and who pays 800 euros in rent currently has a support of 200 euros per month. From January, the rent will increase by €55.52 (via the expected update value), and the tenant will receive an additional support of €39.5 per month.
In other words, of the annual increase of almost 667 euros with rent, 474 euros (i.e. about 71% of the increase) will be supported by the reinforcement of support.
According to the NRAU, it is up to INE to determine the rent update coefficient, which must be included in a notice to be published in the Official Gazette by the 30th of October, of each year to become effective.
“In these terms, it is hereby made public that the coefficient resulting from the provisions of paragraph 1 of article 24 of Law no. 6/2006, of 27 February and paragraph 5 of article 11 of Decree-Law no. 294/2009, of 13 October, is 1.0694”, reads the notice published this Monday in the Official Gazette and signed on 26 October by the chairman of the Board of Directors of INE, Francisco Lima.
Samantha Gannon
info at madeira-weekly.com
