Housing Affairs

Policy accepted June 15, 2024

Housing security is ensured throughout the country. Secure housing is a fundamental prerequisite for well-being.

That a long-term housing policy be immediately adopted to meet the enormous housing shortage that Icelandic society is currently facing.

Four thousand apartments will be built annually over the next three years, and thereafter, sufficient construction volume will be maintained annually in proportion to the population and needs at any given time.

That 30 thousand social housing units will be built in the next ten years

For the housing system to be regionalized and stop being a playground for speculators.

To ensure that funding is secured for socially run rental companies to constitute at least 25% of the housing market after 20 years.

That laws be changed so that a new public housing fund can be established. Such a housing fund builds and leases non-profit housing to socially and cooperatively run public rental associations such as municipal rental associations, student associations, associations for disabled people, the elderly, single parents, or any kind of public organizations.

That rent index adjustments are made only once a year and that it is ensured that people do not pay more than a quarter of their disposable income in rent.

That homelessness be eradicated and it becomes illegal for the public sector to turn people in need onto the street, at any time of day. Shelters will thereby not be operated solely as night-time facilities.

That tenants' rights shall be ensured and that a robust rental market is promoted with long-term rental agreements, rules on rent caps, and maintenance obligations. Renting will be a good option and not a burden.

That stricter restrictions be placed on short-term rentals to tourists (Airbnb) so that the rental market does not fall prey to market forces in connection with the tourist flow and thereby become unpredictable.

That students in university or college education, such as vocational and/or specialized school education, and students from rural areas be guaranteed housing in student dormitories through socially operated and non-profit housing associations.

That laws on cooperative societies be revised with the aim of making it feasible to establish rental cooperatives and other types of cooperative societies.

That disabled people and the elderly be guaranteed housing through socially run and non-profit housing associations.

To ensure that a single legislature cannot abolish socially or cooperatively run housing systems and funds.

Additional content

People's housing should not be a playground for speculators. It is natural that a large part of housing development is non-profit. Waiting lists for public or non-governmental organization housing are unacceptable. Low-income people in the rental market are now mostly caught between low incomes and exorbitant rent.

To protect these people, there is a need for the development of social housing that affects the rental market and can permanently lower rental prices. Housing support also needs to be increased so that no one pays more than a quarter of their income in housing costs.

Housing security is one of the basic prerequisites for welfare in the country, and access to housing is a self-evident human right. ("Article 25 of the United Nations Universal Declaration of Human Rights states: 1. Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing, medical care and necessary social services…)

A long-term plan for housing is essential to prevent a massive housing shortage from accumulating, as has happened today. When planning new settlements and reorganizing older neighborhoods, a reasonable proportion of plots should be allocated for cooperative housing associations and social housing. This will ensure residential freedom for individuals and families, regardless of their economic situation. Residential freedom means that people can choose the location and type of housing according to their circumstances at any given time.

Affordable and secure housing is a prerequisite for all welfare and health services. A major effort in the development of social housing is a fundamental prerequisite for building a robust welfare system here, which is essential for eradicating poverty.

The Socialist Party proposes a housing revolution where 30,000 social housing units will be built across the country in the next ten years, and additionally, a significant number will be built in the next three years to meet accumulated demand.

The state, municipalities, and pension funds need to work together on this development, which is proposed to be done in the following way: A Public Housing Fund will be established, which will raise 70% of the necessary capital by issuing bonds to be sold to pension funds and other investors. The bonds' collateral is secure, as the residential housing will be under secure long-term lease, and thus the bonds will bear comparable interest rates to government bonds. Approximately 13% of the cost will be contributed by municipalities and the state in the form of land, and 17% will come as a loan from the state treasury at the lowest interest rates, a loan to be repaid over the lifespan of the apartments. Capital costs will therefore be as low as possible today.

The Public Housing Fund will then lease housing to Public Rental Companies, which can be of various types: Municipal rental companies, student associations, associations for disabled people, the elderly, single parents, or any kind of public organizations with common interests. It will also be possible for individuals and/or groups to choose to live in tiny house communities or houses on wheels. Furthermore, conditions will be created for building cooperatives and rental companies run by the residents themselves to flourish. The conditions for renting social housing will also be expanded, thereby eliminating marginalization.

Building and urban planning need to be improved to prevent settlements in hazardous areas such as volcanic or avalanche-prone zones. Good infrastructure development should be planned for in new neighborhoods of all municipalities to prevent hot water shortages, power outages, or other obstacles.

It is also necessary to prevent food production from being confined to specific areas due to damage to infrastructure during natural disasters. Sufficient operating funds will be allocated for the maintenance of public buildings to prevent moisture and mold problems.

Tenants should not live in uncertainty about rent prices due to interest rate changes throughout the year; instead, the interest rate level should be determined once a year based on an average, as is common in most parts of Europe and North America. It is important that tenants are protected against exorbitant rent prices and that it becomes more favorable to rent than to buy, and therefore it is natural to keep rent payments below loan repayment prices.

In this country, the opposite has been true, but at the same time, people have not received credit assessments for apartment purchases from banks that take into account how much rent they have paid, only looking at how much disposable income they have.

In addition to significantly increasing socially operated housing, a cap must be placed on rent prices, their legal status must be ensured, and they must have enough to live on.

The position of tenants needs to be strengthened by empowering tenant associations, but tax measures can also be applied, for example, by increasing taxation on housing without permanent residency, raising capital gains tax, and more, to improve the situation of this group.

Access to housing for all the public shall be ensured, and emergency housing shall be available in all municipalities to meet acute needs. People shall not be housed in emergency shelters where they are out in the cold during the day, but rather decent emergency solutions shall be available, whether for a family experiencing homelessness, refugees, or people facing complex problems.

To address the current housing crisis, it is also proposed that solutions already existing in neighboring countries be developed. Work on developing a new public housing fund and related legal changes should begin immediately, and the implementation of a new system is expected to take no longer than three months.