5 March 2026

Efling demands reforms in the rental market

Date

5 March 2026

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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. 
By Freyr Efling 20. May 2026
Board Efling of the union has decided to fund Matthildi, an organization for harm reduction, with 1.7 million kronur. The Matthildi organization was founded in 2022 and focuses on harm‑reduction services at the early stages of substance abuse. The aim of harm reduction is to help people stay alive, protect their health, both physical and mental, and to empower them in all small steps towards positive change. Matthildi runs the harm‑reduction service Reyk. The service is free of charge for everyone and places a special emphasis on reaching people at the early stages of substance abuse, with the aim of preventing a more serious development of the problem and untimely deaths. In the period from 4 February 2025 to 31 January 2026, Reyk has provided service to 235 individuals on 1,100 occasions. Of these, 25 percent of the clients are employed, and some of them are members of Efling. These individuals struggle with substance abuse as well as poverty and difficult social circumstances. A steady increase in opioid problems has occurred over the past nearly fifteen years. In addition, problems related to cocaine use, crack and methamphetamine smoking have risen steadily over the last decade. It is very important to provide the group facing this problem with harm‑reduction services and support for recovery. The Reyk service is for many the first point of contact for assistance and provides clients with extensive support, follow‑up and connection to social and health services. Matthildi has assisted many in substance‑use treatment, opioid medication treatment and obtaining appropriate social services. In doing so, the organization has helped individuals recover and be able to keep housing, mental health and continue working.
By Freyr Efling 15. May 2026
The board of Efling union approved at its meeting on May 13 a support declaration for strike actions of Norwegian members in the cleaning sector within the sister union Norsk Arbeidsmandsforbund. In the declaration, colleagues in Norway sendr are sent struggle and solidarity greetings. The declaration follows below. The board Efling sends struggle greetings and expresses full support for the strike actions of staff in the Norwegian cleaning sector under the leadership of our sister union NAF. The members of Efling recognize the courage and the great work required to organize an effective strike. The board is also well aware of the necessity to improve the terms and conditions of workers in the cleaning sector worldwide, including in Iceland and Norway. Efling believes in the power of the union and wishes our collaborators in Norway the best possible success in their struggle. Norwegian version Efling expresses support for Norwegian colleagues in strike. The board of the Efling union adopted at its meeting on May 13 a support statement for the strike actions among Norwegian colleagues in the cleaning industry within the sister union Norsk Arbeidsmandsforbund. The declaration includes messages of struggle and solidarity to the colleagues in Norway. The declaration follows below. The board of Efling sends a greeting of full solidarity with the striking workers in the Norwegian cleaning sector, led by our sister union NAF. The members of Efling know what courage and hard work are required to organize a successful strike. The board is also aware of the need to improve the terms and conditions for workers in the cleaning industry globally, including in Iceland and Norway. Efling believes in the power of collective action and wishes our colleagues in Norway the greatest possible victory in their struggle.
By Freyr Efling 6. May 2026
Stefán Ólafsson writes: The Central Bank is cooling the economy, hoping to bring down inflation. It does this by keeping interest rates high, which bites at indebted households and businesses. However, it does not work on foreign price increases, nor on inflation due to rising housing costs, nor on demand expansion of indebted and high‑income individuals and companies, nor on expansion due to private consumption of a large number of tourists. These measures of the Central Bank have ultimately shown to deliver only limited results and are increasingly extremely unfair in the distribution of burdens. But the Central Bank's method certainly cools the economy, it almost reduces economic growth and increases unemployment. That is the cost of applying the high‑interest policy. Recently the analysis department of Landsbankinn published its economic forecast for the years 2026 to 2028, which assumes growth of only 1.6 to 1.8% over the next three years. That is less than the projected population growth in the country, according to the Statistics Iceland forecast. Growth per capita will therefore be negative. In reality, this means that the economy has entered a stagnation that is expected to continue at least until 2028. This can be seen in the picture below, which shows growth per capita. 
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