March 3, 2026

Empowerment requires increased housing security and access to owner-occupied housing

Date

March 3, 2026

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Efling members demand that the government guarantee workers safe access to home ownership and that housing be recognized as a human right, not an investment tool.


This is the keynote of the Efling þing 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. Members also want to place restrictions on investor buyouts of residential property and ensure that properties primarily benefit 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 mortgage payment estimates, lower interest rates, and a cap on real interest rates. Members also want municipalities to build apartments and sell them at cost, for a portion of new construction to be specifically targeted at first-time buyers, and for interest subsidies to be increased.


The resolution in its entirety can be read below.


Owner-occupied housing 

Housing security should be a cornerstone of workers’ well-being. 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 nurtured. The home is part of a wider community – an apartment building, a street, a neighbourhood – that is connected to the nursery, primary school, sports club, 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 this with them into the future, which can lead to school dropout, disorder and social problems. 


Having a roof over your 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 their residence is at the landlord's discretion, that children have to repeatedly change schools and groups of friends, or that housing costs will suddenly increase, making it difficult to provide for the necessities of life. 


Efling members demand that the Icelandic state guarantee workers who have permanent residence in Iceland secure access to owner-occupied housing. This should not be solely the privilege of the middle class and those who receive housing benefits in inheritance. 


Efling partners make the following demands to the Icelandic government regarding owner-occupied housing: 


  • Housing is a human right, not a financial burden. Stricter rules need to 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 allocating residential property for profit-driven short-term rentals. 
  • The usable housing that already exists should be used primarily by the people of the country, and this should be ensured through effective rules and incentives. 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 already live there are taken into account. It must be ensured that there is a supply of land and that planning obstacles are removed. Such a plan must be realistic and based on the best possible forecasts of population development 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 building rights have been purchased. The state should monitor that the rules are enforced.
  • Housing loans are an inevitable byproduct of owning a home. Efling members want sensible rules to be set for the implementation of payment assessments. Those who are already truly burdened with 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 hammer has turned into an inflated interest rate balloon that will burst if anything. The government needs to put together a realistic, time-bound and detailed plan on how to bring down inflation and get out of the high interest rate 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 is necessary to ensure 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 rate compensation need to 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. 

March 5, 2026
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.
March 4, 2026
The operators of the restaurant Italia have been sentenced to a three-year business ban. Elvar Ingimarsson and Björgvin Narfi Ásgeirsson, former owners of Ítalgest ehf, the restaurant's operating company, were sentenced to a business ban by the Reykjavík District Court on January 12. The Supreme Court has now upheld the district court's ruling. Efling union initiated proceedings due to abuse, wage theft and violations of rights at the restaurant Italia, as well as at other restaurants run by Elvar and Björgvin Narfi, in September 2024. The union drew attention to numerous and serious violations of the rights of workers at the restaurants in question, which had been ongoing for a long time. Efling Board of Trustees adopted a resolution at its meeting on September 12, 2024, condemning the abuse of labor and wage theft at the restaurant Italia. After the meeting, a solidarity action was taken on Frakkastígur outside the restaurant. Efling then collected testimonies from employees who had worked in their company's restaurants, gathered data and presented them to draw attention to violations against workers. This created considerable media debate. The company Ítalgest was declared bankrupt on October 9, 2024. Elvar subsequently tried to claim that Efling legitimate actions had led to the bankruptcy. This was untrue, as a request for bankruptcy of Ítalgest had been submitted a week before Efling actions began. It therefore clearly showed the kind of impasse its owners had put the company in, with irresponsible operations and violations against employees. The District Court's judgment, and the confirmation of the Supreme Court, confirm the kind of violations that took place in the company's operations. The administrator of the bankruptcy estate of Ítalgest, Björn Þorri Viktorsson, demanded that Elvar and Björgvin Narfi be banned from business operations due to their involvement in the company, whose operations were more reminiscent of organized crime than restaurant operations. Thus, numerous unexplained payments were found from the company into the personal accounts of the partners, or to people with family ties to them. Claims against the bankruptcy estate amounted to around 116 million krónur, but almost no assets were found in it. Therefore, the partners, Elvar Ingimarsson and Björgvin Narfi Ásgeirsson, were sentenced to a three-year ban on business operations, which is the maximum penalty under the law. Efling welcomes the fact that what appears to have been organized, long-term criminal activity by the partners is being addressed. It is unacceptable that people can get away with violating workers for so many years, without any consequences. Here you can see Efling coverage of the criminal activities of Elvar Ingimarsson and Björgvin Narfi Ásgeirsson.
March 3, 2026
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.
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