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




