Groundbreaking for shared ownership flats in Hafnarfjörður

Yfir 390 íbúðir rísa við Hjallahraun

The first spade has been struck for a new development project at Hjallahraun in Hafnarfjörður, with a number of flats for first-time buyers receiving a shared ownership loan. At least 390 flats will be built – a third of which will be for first-time buyers through the shared ownership loan scheme.

Ragnar Þór Ingólfsson, Minister of Social Affairs and Housing, Pálmar Harðarson, Managing Director of Þingvangur, Valdimar Víðisson, Mayor of Hafnarfjörður, and Kristín Hrönn Guðmundsdóttir, Managing Director at Íslandsbanki, took the first spadeful of earth yesterday afternoon.

Mayor welcomes the development

„We welcome this development,“ says Valdimar Víðisson, the mayor of Hafnarfjörður.

„We have emphasised from the outset that there will be a diverse range of housing to suit everyone in the community. It is pleasing to see the good cooperation between the building contractors and the government in this project. The municipality has had a good working relationship with Þingvang and has shown flexibility when it comes to planning conditions. No corners have been cut on housing development here in Hafnarfjörður in recent years, and we intend to continue shouldering that responsibility.“

In the first phase of the project, 177 flats will be built – of which at least 60 will be for those who meet the criteria for shared ownership loans.

Shared ownership loans are loans provided by the Housing and Property Agency to those who are buying their first home, have not owned a home in the last five years, and are below certain income thresholds.

The project was restored and launched.

Þingvangur had previously prepared for the development of flats in Hjallahraun but abandoned the project in mid-2024 due to high interest rates and uncertainty over sales. Thingvangur has now redesigned the first phase of the project so that at least 60 flats fit within the framework of shared ownership loans. The number of flats has therefore increased, and their average size has decreased from the previous design.

According to a letter of intent signed alongside the groundbreaking ceremony, the collaboration between the government and the developer is fundamental to launching this major development project in the capital region and significantly increasing the supply of housing. including homes within the shared ownership scheme.

Minister says the participatory loans are changing the situation

Ragnar Þór Ingólfsson, Minister of Social Affairs and Housing, says the changes we recently made to the shared equity loan scheme completely change the situation.

„By the government, local authorities and developers working together, we will break the deadlock and ensure the supply of homes suitable for first-time buyers and that fit within the shared ownership scheme. Developers can then build specifically for the scheme, which was not previously possible. I welcome this huge development project that has now begun and look forward to seeing other similar ones get underway.“

Pálmar Harðarson, managing director of Þingvangur, says the company has long awaited being able to start this development. „Now it is possible, as the Minister for Social Affairs and Housing has come down on our side, along with the City of Hafnarfjörður, investors and Íslandsbanki. I would like to thank them in particular for contributing to getting the project off the ground,“ he says.

„This is the first time there has been any form of pre-sale agreement for us developers to be able to anchor the projects at the outset and design the flats specifically for the shared ownership loans and also for the open market, because we want to build all types of flats for everyone.“

• The news is based on text from fto the Ministry of Social Affairs and Housing. See the news here.

Caption: The first spadeful taken in Hafnarfjörður this afternoon. From left: Pálmar Harðarson, Managing Director of Þingvangur, Ragnar Þór Ingólfsson, Minister of Social Affairs and Housing, Valdimar Víðisson, Mayor of Hafnarfjörður, and Kristín Hrönn Guðmundsdóttir, Managing Director at Íslandsbanki. Main photo/Sigurjón Ragnarsson