Outdoor spaces as illegal housing in Portugal

The phenomenon of outdoor spaces as illegal housing has been gaining momentum in several Portuguese cities, especially in urban areas such as Lisbon and Porto. Faced with escalating property prices and a shortage of available properties, many owners and intermediaries are choosing to adapt outdoor spaces or annexes, such as courtyards, storage rooms, garages and shops, for housing purposes, without complying with legal and technical safety and health standards.

These spaces, originally intended for agricultural, leisure or housing support purposes, end up being transformed into makeshift housing units. The lack of adequate ventilation, thermal insulation, sanitary facilities and safety systems exposes occupants to serious health and physical risks. In addition, the structural precariousness of these buildings, often erected or modified without any licensing, increases the danger of collapse, water infiltration and fire.

Illegal housing is mostly occupied by people in situations of economic and social vulnerability. Among the main groups affected are immigrants, who arrive in the country in search of better opportunities, and displaced students, who find it very difficult to afford the high rents charged in the formal market. For many, the alternative is to accept verbal contracts or informal agreements, without any legal protection, in exchange for a roof over their heads, even if the conditions are not decent.

Overcrowding is a recurring problem. Small areas of a few square metres are divided into several improvised compartments, housing several families or groups of individuals. In extreme cases, the rent is charged per bed or mattress, which transforms the space into precarious and unsanitary accommodation.

Enforcement, although announced as a priority, has significant shortcomings. Local authorities and competent authorities do not always have sufficient human and technical resources to detect and act on these situations. When inspections do take place, the outcome tends to penalise tenants, who end up being evicted, while landlords often escape sanctions or repeat the practice. This lack of effective consequences encourages the continuation and expansion of this parallel market.

The social and economic impact of this reality is profound. In addition to exacerbating the housing crisis, the proliferation of yards as illegal housing undermines trust in institutions, fosters the parallel economy and represents significant tax losses for the state. At the same time, it contributes to the perpetuation of situations of social exclusion and housing insecurity, hindering the integration of migrant communities and weakening social cohesion.

Solutions to this problem require a coordinated effort between the government, local authorities, tax authorities and tenant rights associations. Measures such as the imposition of minimum standards of habitability, the mandatory formalisation of contracts and an increase in the supply of affordable housing are essential. The creation of secure channels for reporting, combined with truly dissuasive sanctions, could help to curb the proliferation of these practices.

Investing in public urban regeneration programmes and promoting affordable renting through tax incentives and partnerships with the private sector are important steps towards reducing the demand for illegal solutions. At the same time, awareness campaigns can alert potential tenants to the risks and consequences of agreeing to live in yards as illegal housing.

The clandestine transformation of public spaces and annexes into dwellings is a direct reflection of the lack of an effective response to the housing crisis in Portugal. Combating this phenomenon is not only a legal issue, but also an imperative of social justice, public health and urban planning. Firm intervention, accompanied by decent and affordable housing solutions, is essential to ensure that everyone has the right to live in safety, comfort and dignity.

Source: CASA SAPO