Social rental market

28th June, 2012

The idea is to stimulate the decentralised leasing of properties all over the country in cooperation with local authorities, at no cost to the state and with the involvement of private enterprise.

The social rental market is a national initiative being promoted by the Ministry of Solidarity and Social Security. It consists of a partnership between the state, seven banking institutions, which were represented at the launch ceremony by Associação Portuguesa de Bancos (APB - Portuguese Banking Association), and the subscribing municipalities.

This initiative is part of the Social Emergency Programme. It includes Banco Espírito Santo, Banif, Banco Popular, Santander Totta, Montepio Geral, Millennium BCP and Caixa Geral de Depósitos, all represented by the APB, and will provide access by a large number of families to an attractive rental market as an alternative to buying their own home.

In the social rental market, the state will offer homes via Instituto da Habitação e da Reabilitação Urbana (IHRU - Housing and Urban Renewal Institute) and Instituto de Gestão Financeira da Segurança Social (IGFSS - Social Security Financial Management Institute).

Demonstrating the professionalism that they wish to impart to this initiative and its management, the participating banks have decided to set up a real estate investment fund for residential rentals (FIIAH) entitled Rental Solution. The contract to manage it was won by NORFIN – Sociedade Gestora de Fundos de Investimento Imobiliário, S.A. The properties provided by the banks total leases worth around 72 million euros.

The social rental market currently has 915 habitable properties in 108 municipalities, of which 729 belong to the FIIAH, 172 to the IHRU and 14 to the IGFSS.

Sixty cooperation agreements have already been signed between Norfin, the IHRU and the IGFSS and the participating municipalities as part of the programme. The municipal authorities have a fundamental role to play in this initiative, especially in the selection and initial triage of the families applying to rent the properties.

All relevant information about the social rental market is available on www.mercadosocialarrendamento.msss.pt.

Speech by the President of Associação Portuguesa de Bancos, Mr Faria de Oliveira