
Efling demands reforms in the rental market
The Icelandic rental market is not an add-on or a band-aid on the housing market. Many Efling associations are on the rental market for a long time 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 that was adopted at the Efling meeting on February 27 last year, where fundamental reforms of the Icelandic rental market are required. The resolution includes ten demands from the Efling union to the Icelandic authorities to address the serious problems on the rental market. The main demands include, among others:
- Establish laws and regulations that limit sudden rent increases, support long-term agreements and reward reliable tenants.
- Ensure regular monitoring of rental housing to assess condition and fair pricing.
- Lease agreements must be in Icelandic krona.
- Housing rent allowances should be individualized, based on each tenant's income.
- A database of tenants and landlords should be set up to promote transparency.
- Limiting will become large-scale short-term rentals for tourists.
- The supply of rental housing must be increased and the share of non-profit rental associations in such a structure must be secured. A housing cooperative for workers should then be established where it would be possible to acquire apartments with a purchase lease.
The resolution follows here in its entirety.
House rent
Icelandic authorities must face the fact that the rental market is not an add‑on or a band‑aid on the Icelandic housing market. Many Efling members are on the rental market for a long time and need to rely on a housing lease 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 housing at an affordable price or renting in a safe and cost‑effective way. There needs to be a humane, regulated and stable rental market that is a realistic option for working people, as is known in our neighboring countries.
Efling associations make the following demands of the Icelandic authorities on matters of the rental market:
- Far from enough has been done to curb the powers of landlords to make tenants' existence a joke. Laws and regulations must be enacted that ensure fair and reliable limits on rent increases, encourage agreements to be maintained for longer periods, and reward reliable tenants who meet all the conditions of the tenancy agreement.
- It must be ensured that the appropriate authorities (e.g., HSE) can carry out supervision in accordance with the authorizations that will be introduced so that these regulations and laws are complied with.
- Regular monitoring of rental housing must be carried out, for example every two years, so that the condition can be assessed, a fair market price determined, and quality, safety and transparency in the rental market ensured.
- Rental agreements must be made in Icelandic krona, and not in foreign currencies.
- Landlords shall be responsible for ensuring that the registration of tenants who live in rental housing is correct and up‑to‑date.
- Housing rent allowances should be calculated individually, based on the personal income of each tenant, rather than on joint income. Such a method would be more consistent with Article 76 of the Constitution of Iceland, which guarantees an individual's right to social assistance.
- It is also important to establish a database of tenants and landlords. Access to such information contributes to a healthy rental market with increased trust and transparency in the process for both parties.
- In addition, it is necessary to ensure access to independent parties that both tenants and landlords can turn to, in order to record and preserve images of the condition of the apartment before and after the tenancy. Such registration can be used as neutral evidence and contribute to a fair settlement of insurance/payments at the end of the tenancy.
- It is necessary to be much stricter about the practice of short-term rentals of residential housing for tourists. Renting a home for a short period within a year can be considered an additional income source for families. However, this should not become a large-scale industry of investors and speculators that takes up a significant portion of the housing stock that the people of the country need in order to live a safe and decent life.
- It is necessary to increase the supply of rental housing, as part of a broader, financed and timed government housing plan that is prepared according to solid forecasts and in consultation with the municipalities. It is necessary to ensure the participation of non‑profit rental associations in that construction, for example through Bjarg which has proven its value as a targeted solution for people on lower wages. It would also be appropriate to establish a housing association for workers where there is an opportunity to acquire the apartments through rent.




