Council of Ministers Triples the IHRU Multi-Annual Envelope to €1.85 Billion for 12,000 Affordable-Rent Homes by 2030 — Resolução 111/2026 Loads €188 Million Into 2026 and €577.8 Million Into 2027

The Conselho de Ministros (Council of Ministers) published in the Diário da República on Friday 5 June 2026 the Resolução do Conselho de Ministros n.º 111/2026, authorising the Instituto da Habitação e da Reabilitação Urbana (IHRU, Institute for Housing and Urban Rehabilitation) to commit up to €1.851.636.907 plus VAT over the 2026-2030 horizon to acquire, build and rehabilitate up to 12.000 dwellings for the Parque Público de Habitação a Custos Acessíveis (Public Stock of Affordable-Rent Housing). The new envelope replaces Resolução 148/2025 of October last year, which had capped the same 12.000-home programme at €511.636.907 plus VAT — meaning the multi-annual ceiling has been lifted by roughly 3,6 times the original budget line in eight months.

The resolution publishes a year-by-year spend profile for the first time, fixing the maximum chargeable to each financial year as follows: €188.020.869 in 2026, €577.802.444 in 2027 (the heaviest tranche), €386.467.636 in 2028, €408.499.462 in 2029 and €290.846.496 in 2030, with VAT additional on every line. Unused balances roll forward — the diploma confirms that "os valores fixados para cada ano económico podem ser acrescidos do saldo apurado no ano que lhe antecede" (the amounts fixed for each financial year may be increased by the surplus settled in the previous year), softening the cliff risk in any individual budget cycle. The Tesouro e Finanças is the disbursing entity, transferring capital allocations from Capítulo 60 of the Orçamento do Estado to the IHRU on annual request.

The funding architecture is a three-leg stack. The Plano de Recuperação e Resiliência (PRR, Recovery and Resilience Plan) supplies the largest component through the existing Programa de Apoio ao Acesso à Habitação envelope; the European Investment Bank (Banco Europeu de Investimento, BEI) layers term loans on top — vice-president Ioannis Tsakiris attended Thursday's signing alongside Finance Minister Joaquim Miranda Sarmento, Infrastructure and Housing Minister Miguel Pinto Luz and Prime Minister Luís Montenegro; and direct tax-revenue funding rounds out the rest. The diploma clarifies that the share funded from tax revenues — i.e. national budget transfers independent of European money — is capped at €511.6 million globally, the same figure that bounded the entire programme under the prior October 2025 resolution. The remaining ~€1.34 billion of the new envelope is therefore the PRR and BEI contribution made explicit on the multi-annual ledger.

Crucially for delivery confidence, the resolution decouples the affordable-rent build-out from PRR slippage risk. "Sem prejuízo do calendário de implementação e execução do investimento do PRR, o financiamento para a execução do Parque Público de Habitação a Custos Acessíveis ocorre até ao ano de 2030" (Notwithstanding the schedule of implementation and execution of PRR investment, financing for the execution of the Public Stock of Affordable-Rent Housing runs through to 2030). With the European deadlines on the PRR's housing chapter tightening and the original 30 June 2026 PRR target for 26.000 homes hopelessly off-track — the government inherited 1.607 units delivered when it took office — the carve-out lets Lisbon finish the 12.000-dwelling tranche on its own clock, with national funding standing behind whatever PRR money does not arrive on time.

The 12.000-home programme is itself a subset of the broader public-housing target the government adopted at the October 2025 Conselho de Ministros: 58.993 dwellings by 2030, more than double the original 26.000 inscribed in the PRR. Of that wider total, 36.000 homes are 100% state-financed and the remaining 23.000 are 60% co-financed with municipal or private partners, with the cumulative budget reinforcement put at €2,8 billion. The 12.000 covered by Friday's resolution sit inside the 100%-financed band and can be promoted directly by IHRU or by municípios — the choice of route is left to the eventual portaria signed jointly by the Finance and Housing ministers, still pending.

The Orçamento do Estado para 2026 (OE2026, 2026 State Budget) already provisioned the housing pillar at close to €1,2 billion for IHRU. Of that total, €800 million sits in the Programa de Apoio ao Acesso à Habitação umbrella (the rent-support and acquisition-aid programmes), €360 million is earmarked for the Parque Público de Habitação a Custos Acessíveis (the stock today's resolution underwrites), €28 million flows to the Bolsa de Alojamento Urgente (emergency-housing pool) and €10 million covers reabilitação do parque habitacional (rehabilitation of existing public stock). The €188 million 2026 ceiling in Resolução 111/2026 sits inside the €360 million OE2026 line, leaving headroom for parallel municipal acquisitions and any 2025 carry-forward draw-down through the same vehicle.

The resolution lands on the same day that the Banco de Portugal lifted new mortgage rates to 2.86% in the April monetary statistics — the first 2026 climb — and one week after the Câmara Municipal de Lisboa cleared the 28-hectare Marvila-Beato master plan backed by 1875 Finance at €500-800 million for 1.400 private homes. Public supply and private supply are now both moving — but at different cadences. Marvila-Beato will not deliver finished units until late 2028 at the earliest; the IHRU envelope front-loads acquisitions and rehabilitation that can put completed dwellings into the rental queue inside 12 to 18 months. The mutualist sector adds a third leg: Banco Montepio's €210 million residential stock and €50 million annual build-out, disclosed at this week's Misericórdias congress.

What This Means for Expats and Residents

• Eligibility framework still pending: The income brackets, rent caps and tenant-selection criteria for the 12.000-dwelling tranche will be set by the joint Finance-Housing portaria the resolution references. Until that portaria is signed and published, IHRU and municipal applications will run under the existing Programa de Apoio ao Acesso à Habitação rulebook — including the IAS-linked income thresholds set by the existing portaria framework and the regulamento municipal screens for direct câmara queues.
• Municipal versus IHRU route matters: Whether your application sits inside an IHRU-led tender or a câmara municipal-led acquisition changes the timeline, the rent structure and the lease form. Câmara routes typically attach to the Bolsa Municipal de Arrendamento with five-year renewable contracts; the IHRU national pool has historically run on longer leases. The portaria will harmonise the routes; in the meantime, register with both your municipality and the IHRU national platform if you want maximum coverage.
• Front-loaded acquisitions favour 2026-2027 applicants: The €188 million 2026 and €577.8 million 2027 tranches concentrate the bulk of the acquisition spend in the next 18 months. Expect a wave of IHRU compras to private owners — particularly multifamily blocks and rehabilitation-grade stock — before the construction tranches in 2028-2029 ramp up. Sellers in the urban cores (Lisboa, Porto, Setúbal, Faro) should track the IHRU sourcing channels announced via the IHRU portal.
• Tax-revenue cap means resilience to PRR friction: The €511.6 million tax-revenue floor inside the new envelope is the load-bearing piece for delivery confidence. Even if PRR disbursements stall on the European review side, that share of the build-out is funded directly from the OE — so the 12.000-home target is less politically fragile than a pure PRR-funded line.
• OE2026 leaves headroom outside the 12k tranche: The €360 million 2026 budget line for the affordable-rent stock exceeds the €188 million tranche cap in the resolution, leaving roughly €172 million for parallel municipal pipelines outside the 12.000-dwelling target — useful for câmaras that have already signalled acquisition queues this year (notably Lisbon, Porto and Setúbal).

The full text of Resolução do Conselho de Ministros n.º 111/2026 is available on Diário da República at diariodarepublica.pt. The joint Finance-Housing portaria establishing the operational rules for the 12.000-dwelling programme is expected before the parliamentary recess. We will return to the eligibility detail when that portaria publishes and to the OE2026 disbursement cadence at the next IHRU quarterly execution report.