The Prospect Of Cheap Rent In Reykjavík - The Reykjavik Grapevine

The Prospect Of Cheap Rent In Reykjavík

Published February 26, 2013

After their recent proposal for a Danish mortgage model in Iceland was championed by many political parties of late, the Icelandic Confederation of Labour (ASÍ) has put forward a new proposal for increased social housing in Reykjavík, Vísir reports.
While a 100 square metre apartment in Reykjavík could easily set a renter back just under half a million krónur each month, implementing the Danish model of ensuring adequate social housing for low-income renters would see the average cost of a 100 square metre apartment hover around 88,000 ISK. The model protects renters from rent increases and changes in real-estate prices. The Danish model would see renters paying 2% of the real-estate value of the property upon signing a rental agreement. The landlord would then be able to hold that money and collect interest on it, but would have to return the principle to the tenant when they decide to move out.

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