Faroese parliament considers rent subsidy for tenants

A proposal to introduce a monthly rent subsidy of up to 1,500 Danish kroner for tenants in the Faroe Islands has been resubmitted to parliament, advocacy group Búgva announced on Thursday.

The subsidy, modelled on existing housing benefit schemes for homeowners, would reimburse up to 20 percent of rent costs for low-income households if approved, according to Elin Hentze, spokesperson for Búgva, which advocates for expanded housing options. Applications would be processed by the public utility company Almannaverkið, with payments potentially starting 1 September.

The Ministry of Social Affairs and Housing estimates the scheme could cost the national treasury 17 million kroner annually if 1,200 households each receive an average 1,200-kroner monthly subsidy. Hentze welcomed the proposal but argued the 1,500-kroner cap is too low.

Eighteen organisations were consulted on the draft legislation. The Faroese Pensioners’ Association proposed doubling the maximum subsidy to 3,000 kroner, while the Faroese Employers’ Association called for stricter income limits to target those most in need. The national bank cautioned against extending eligibility to households with significant financial assets.

Parliament will begin reviewing amendments to the bill on Friday.