Lisbon, one of the European capitals at the epicentre of the debate on the Flexible Accommodation, has made a change of course in its regulatory policy. The city council has announced the revocation of the suspension of new licences for short-term rentals, a measure that had been in place as part of an attempt to contain the housing crisis.
This decision, which overturns previously implemented restrictions, is based on one key finding: the ban on new tourist accommodation. has not achieved the objective of lowering house prices in the city. Lisbon's mayor, Carlos Moedas, has argued that restrictive policies have not solved the structural problem of the housing shortage and, instead, may have affected a vital economic sector for the city.
The city council's new approach will focus on promoting the increase in housing supply through construction and rehabilitation, rather than focusing on the restriction of a single activity. The revocation of the suspension of licences is seen as a step towards a more balanced policy, which seeks coexistence between residential and tourist use.
However, repeal does not mean total deregulation. The management of the Flexible Accommodation will continue to be subject to a regulatory framework that seeks to guarantee quality and coexistence. The city council plans to work on a new regulation that will allow a more dynamic management adapted to the needs of each neighbourhood.
This change of strategy in Lisbon is a relevant case study for other European cities facing similar challenges. It demonstrates that solutions to the housing crisis are complex and multi-factorial, and that the restriction of the Flexible Accommodation, alone may not be a panacea. The Lisbon experience suggests that an approach combining the promotion of new housing with smart and flexible regulation of tourism may be a more effective way to achieve a sustainable balance.
