The Icelandic rental market is not an afterthought or a patch on the housing market. Many Efling members are in the rental market for the long term, and the problems of the rental market will not be solved by simply hoping that tenants will move into owner-occupied housing. This is the content of a resolution adopted at Efling Parliament on February 27, which calls for fundamental reforms to the Icelandic rental market. The resolution lists Efling union's ten demands for the Icelandic government to address the major problems in the rental market. The main demands include: Establish laws and regulations that limit sudden rent increases, support long-term contracts, and reward reliable tenants. Ensure regular inspections of rental housing to assess the condition and fair price. Lease agreements shall be in Icelandic krónur. Rent benefits shall be individualized, based on each tenant's income. Databases of tenants and landlords shall be established to promote transparency. Large-scale short-term rentals for tourists must be limited. The supply of rental housing must be greatly increased and the role of non-profit rental companies in such development must be ensured. A housing company for workers should then be established where it would be possible to acquire apartments through lease purchase. The resolution follows in its entirety below. Renting Icelandic authorities must face the fact that the rental market is not an afterthought or a band-aid on the Icelandic housing market. Numerous Efling members are in the rental market for the long term and have to rely on a rental agreement as a lifeline in their existence. The problems of the rental market will not be solved by simply hoping that tenants will move into owner-occupied housing. In a healthy housing market, people can choose between acquiring affordable housing or renting safely and economically. A humane, regulated and stable rental market needs to be established that is a viable alternative for working people, similar to that seen in our neighboring countries. Efling members make the following demands of the Icelandic government regarding the rental market: Far from enough has been done to curb the powers of landlords to make the existence of tenants a game. Laws and regulations need to be established that ensure fair and reliable restrictions on rent increases, encourage long-term contracts and reward reliable tenants who meet all the conditions of the lease. It must be ensured that the relevant authorities (e.g. HMS) can carry out inspections according to the powers that must be implemented to ensure that these regulations and laws are respected. Regular inspections of rental housing, for example every two years, need to be carried out so that the condition can be assessed, a fair market price can be determined and quality, safety and transparency in the rental market can be ensured. Lease agreements should be made in Icelandic krónur, not in foreign currencies. Landlords should be responsible for ensuring that the registration of tenants living in rental housing is accurate and up-to-date. Housing benefits should be calculated individually, based on each tenant’s personal income, rather than on joint income. Such an approach would be more consistent with Article 76 of the Icelandic Constitution, which guarantees individual rights to social assistance. It is also important to set up a database of tenants and landlords. Access to such information contributes to a healthy rental market by increasing trust and transparency in the process for both parties. In addition, access to an independent party that both tenants and landlords can turn to must be ensured, to record and preserve images of the condition of the apartment before and after the rental. Such registration can be used as impartial evidence and contribute to a fair settlement of the security deposit/deposit at the end of the rental period. The scourge of short-term rental of residential property for tourists needs to be tackled much more severely. Renting out a home for a short period of time within a year can be considered a secondary occupation for families. But this should not be a large-scale industry for investors and hustlers that sells off a significant portion of the residential property that the people of the country need to be able to live a safe and normal life. The supply of rental housing needs to be increased, as part of a more extensive, funded and timed housing plan by the government, prepared according to reliable forecasts and in consultation with the municipalities. The role of non-profit rental companies in this development needs to be secured, for example through Bjarg, which has proven its value as a concise resource for people on lower wages. A housing company for workers should also be established where there is a possibility of acquiring the apartments through rental.
Guests, both foreign and domestic, addressed the session and contributed to the discussion, and their presentations attracted attention and sparked further discussion among the attendees. The accompanying photos from the session provide an insight into the atmosphere, from the work on issues and professional groups to the guest addresses.
Efling members demand that the government guarantee workers safe access to housing and that housing be recognized as a human right, not an investment tool. This is the keynote of the Efling resolution, which was approved on the final day of the session, February 27. The resolution emphasizes that housing security is a fundamental prerequisite for welfare and that the current situation, where many people live in insecurity and high costs, is unacceptable. Among the main demands are stricter rules against housing booms, including increased taxation on more than three properties and restrictions on short-term rentals. The members also want to place restrictions on investor buyouts of residential property and ensure that properties are primarily used by the country's residents. Efling also demands a clear and funded government plan to build around 4,000 apartments annually, in collaboration with local authorities, in addition to ensuring sufficient land supply and removing planning obstacles. There are also calls for more realistic payment estimates for housing loans, a reduction in interest rates and a limit on real interest rates. Members also want local authorities to build apartments and sell them at cost, for a portion of new construction to be specifically intended for first-time buyers and for interest rate subsidies to be increased. The resolution in its entirety can be read below. Owner-occupied housing Housing security should be a cornerstone of workers' welfare. The home is the place where workers regain their strength after a hard day's work. The home is the family's refuge, where children are raised and relationships are cultivated. The home is part of a wider community – an apartment building, a street, a neighborhood – which is connected to the preschool, the elementary school, the sports club, the swimming pool and social life. Feeling comfortable at home and knowing that there is a safe haven for the future is of infinite value. Children who experience rootlessness carry it with them into the future, which can cause school dropout, disorder and social problems. Putting a roof over their head should not be a source of anxiety, insecurity and distress or lead to incapacity for work for these reasons. Workers should not fear frequent relocations, that residence is subject to the landlord's discretion, that children must repeatedly change schools and groups of friends, or that housing costs will suddenly increase so that it becomes difficult to provide for the necessities of life. It is the demand Efling members that the Icelandic state guarantee workers who have permanent residence in Iceland secure access to owner-occupied housing. This should not be the privilege of the middle class and those who receive housing support as an inheritance. Efling members make the following demands to the Icelandic government regarding private housing: Housing is a human right, not a financial burden. Stricter rules must be set at all levels to combat the housing boom, for example by increasing property taxes after a third property, except for non-profit rental companies, and by making residential housing available for profit-driven short-term rentals. Usable residential housing, which already exists, should be used by the people of the country first and foremost, and this should be ensured through rules that work and incentives that are effective. Significant restrictions should be placed on the ability of financial owners to buy up apartments for profit. Anyone who buys an apartment in Iceland should be a taxpayer in Iceland. According to the Housing and Civil Engineering Institute, around four thousand apartments need to be built per year over the next few decades. The government needs to put together a time-bound and funded plan for increasing the number of apartments and work on it in collaboration with the municipalities and residents' associations so that the residents who live there are taken into account. It is necessary to ensure that land supply is available and that planning obstacles are removed. Such a plan must be realistic and based on the best possible forecasts of population growth in the coming decades. New housing must be built in a human- and family-friendly manner. Time limits should be set for the use of land after the building right has been purchased. The state should monitor that rules are enforced. Housing loans are an inevitable byproduct of acquiring housing. Efling members want sensible rules to be set for the implementation of payment assessments. Those who are already truly under high rent payments should be able to have their payment capacity assessed. Payment assessments should be assessed based on reality and not on artificial criteria. The current high-interest rate policy is intolerable. It is a great disappointment that the government's promise of an interest rate cut has turned into an inflated interest rate balloon that will, if anything, burst. The government needs to put together a realistic, timely and detailed plan on how to bring down inflation and get out of the high-interest environment in the next 2-6 years. Efling members support the involvement of the social partners in such a plan, as it should be about defending the interests and improving the situation of workers in Iceland. Set a limit on how much real interest the bank can charge on housing loans. It must be ensured that a sufficiently large proportion of newly built residential housing is intended for first-time buyers and workers. Municipalities build apartments to then sell at cost price. Rules on interest subsidies must be expanded. Efling members also demand that Gildir Pension Fund work within the pension fund system to promote more favorable housing loans for fund members.
