Measures that lower the threshold for young people and low-income earners to enter the housing market
Housing issues are among the main priorities of the government, as secure housing, regardless of economic status and residence, is one of the fundamental prerequisites for a thriving society. In recent years, apartment prices and rental prices have been rising significantly, making it harder for young people and those with low incomes to acquire housing than before. The proportion of those who rent has therefore increased at the same time as surveys show that most tenants would prefer to live in their own housing.
A project committee on measures that lower the threshold for young people and those with low incomes entering the housing market was established by the Minister of Social Affairs and Children on December 27, 2018, and has already begun its work. The establishment of the working group is part of the commitment to follow up on the provisions in the government’s policy statement regarding housing issues for young people and those with low incomes.
The working group is composed of Frosti Sigurjónsson, chairman, Hermann Jónasson, Housing Financing Fund, Bergþóra Benediktsdóttir, appointed by the Prime Minister's Office, and Anna B. Olsen, and as an alternate, Sigurður Páll Ólafsson, both appointed by the Ministry of Finance. The group's staff member is Ólafur Heiðar Helgason, a specialist at the Ministry of Finance and Economic Affairs.
The working group has prepared initial drafts of proposals, but with reservations regarding further elaboration, analysis of costs, and impacts. The proposals aim in part to expedite the acquisition of capital and alleviate the repayment burden for loans among young people and low-income groups. Among the proposals of the working group are new measures and changes to existing measures so that they more effectively target those groups that are struggling to acquire apartments.
