In recent statement, PM Katrín Jakobsdóttir has condemned what she called “unacceptable” practices on behalf of Icelandic landlords and real estate companies.
Following her comments, work is expected to begin soon on reforming tenancy rights. MPs from the Left Greens, the Social Democratic Alliance, and the People’s Party have suggested that measures needed to be taken, potentially including a rent ceiling.
While Katrín did not specifically name any one real estate company, her comments follow recent news of one real estate company, Alma, raising rents by nearly a third in renewals for next year, potentially putting lower-income and fixed-income residents out on the street.
Katrín is quoted as saying: “I fully understand these demands in light of the recent conduct of some rental companies, which we have seen examples of in the media. Their conduct is completely unacceptable, as has been clearly stated. I have encouraged the rental companies to take responsibility and show moderation when they determine their rental prices in order to help us deal with inflation.”
Katrín and other ministers are expected to meet with members of the labour market in the coming days to discuss measures that can be taken.