A new group of individuals are seeking help with housing problems.

The City of Hafnarfjörður has requested that the Housing Finance Fund reverse its terminations of tenancy for its rental properties in Hafnarfjörður that have not yet been sold. The municipality's request also stipulates that these properties should not be sold for at least the next three years, at which point the market situation will be reassessed before proceeding with their sale.

A number of residents in Hafnarfjörður have approached the municipality in recent days and weeks for assistance in finding rental accommodation in the area. This represents a new group of community members seeking help who, under the current social housing regulations, are not entitled to such accommodation. Some in this group have in common that they are living in properties owned by the Housing Finance Authority and have been given a specific deadline to vacate the property, or have short-term tenancy agreements. In some cases, these are individuals who have themselves lost the property due to default and debts following the economic crash, and have been granted permission by the fund to continue living in the property for a specified period at a time. However, the Housing Finance Authority has now announced plans to sell as many of its properties as possible by the end of 2017, which means that a large group of people will struggle to find accommodation in the coming months unless appropriate support measures are taken. Haraldur L. Haraldsson, the Mayor of Hafnarfjörður, is deeply concerned about the development of events and has already sent a letter on the matter to the CEO of the Housing Finance Authority and the Minister for Social Affairs and Equality. „A new group of people is emerging who can neither buy nor rent a home. House prices are too high and so are rents, as the supply of rental properties is not keeping up with the temporary demand. These are individuals with incomes well above the thresholds we have set for eligibility for social housing; people who have not previously experienced hardship but who see no way out of their current situation.“ says Haraldur. 

The Municipality of Hafnarfjörður has, over recent months and years, worked systematically to reduce the number of people on the waiting list for social housing and has taken measures aimed at providing affordable plots of land and housing. The municipality currently owns and manages 238 social rental flats and also lets 11 flats on a sub-letting basis. Three flats were purchased in 2016, and this year five flats have already been bought. A further 2-3 flats are expected to be purchased this year. In parallel, it has been agreed to propose in the 2018 budget that at least 500 million króna will be allocated for the purchase of social housing next year. In addition, the City of Hafnarfjörður has entered into an agreement with ASÍ for the construction of 150 rental flats over the next four years, and ASÍ has already been allocated plots for 40 of these. The council will have a pre-tenancy right on 25% of these flats for its clients. The Hafnarfjörður town council has also instructed the mayor to establish a non-profit organisation to manage 8-12 rental flats. The idea is that the tenants themselves will manage the running of the association, and the project's driving force is to lower rents, reduce overheads and increase residents' involvement and participation. It is anticipated that the rent for a 90 m² flat will be around 10,000 krónur per square metre per month.² Rent will be under 160,000 kr. per month.

Significant development is taking place in Hafnarfjörður; plots of land in Skarðshlíð have been allocated for around 240 homes, which are scheduled to be ready by the end of 2018. Currently, plots for around 154 homes are being advertised, and only individuals can apply for a portion of them. Later in the year, it is expected that plots for a further 100 homes will be advertised. At the same time, work on drawing up a plan for Hamranes has begun, with development of around 300-400 homes planned there. In addition, construction is already underway on several blocks of flats in Hafnarfjörður. „I would argue that this is a temporary situation; the market has yet to correct itself and the circumstances of this group of individuals will improve, provided they receive appropriate support and assistance in their current situation. The supply of flats in Hafnarfjörður is increasing, and around 800 are expected to be ready in the next three to four years if all goes to plan. We are striving to do our part.“ says Haraldur L. Haraldsson, Mayor of Hafnarfjörður, in conclusion.