Einar urges government and parliament to cut inflation and interest rates

Einar Þorsteinsson, a Reykjavík city councillor for the Progressive Party and chairman of the city council, has urged the government and Parliament to make economic policy decisions that lower interest rates and reduce inflation, mbl.is reports.

He made the comments at a public meeting organised by the Housing, Construction and Planning Authority on the status and outlook of residential construction.

Einar said the city needed a strong construction and development sector, economic growth, low inflation and interest rates, residents with sufficient purchasing power, and financially sound rental companies offering affordable rents over the long term to meet its ambitious housing targets.

“That is how we can ensure housing security for all residents, which is ultimately the city’s main goal,” he said.

He warned that if the government and Parliament failed to make the right economic policy decisions, the country would remain trapped in a cycle of alternating hot and cold housing markets.

Plans for 15,000 homes

Einar reviewed housing development in Reykjavík. Plans call for 15,000 homes in future and development areas, while 12,000 homes are in areas undergoing planning, 3,300 have approved detailed plans, 2,500 are in areas ready for construction and 2,859 homes are currently being built.

He also outlined planned development in key areas of the city, with construction increasingly moving east of Elliðaárvogur.

Ártúnshöfði is a development area of around 100 hectares that is expected to accommodate about 7,000 new homes in three school districts, along with 200,000 square metres of commercial space.

Keldnaland is an approximately 110-hectare development area planned to accommodate around 5,800 new homes in two or three school districts, as well as 150,000 square metres of commercial space.

Hallahverfi in Úlfarsárdalur is an 80-hectare development area. The ideas phase has been completed and further work on the framework plan is ahead. The winning proposal by Nordic and Efla provides for around 3,400 to 3,700 homes in two school districts.

Parking rules to be changed

Einar said city authorities were abolishing rules setting a binding maximum number of parking spaces for new construction and urban renewal, and would change the relevant reference values.

The aim, he said, was to increase flexibility and allow the number of parking spaces to be determined according to the circumstances, nature and location of each development.

The revised reference values would still provide the basis for assessing parking needs, but it would be possible to deviate from them upwards or downwards when circumstances warranted.

He said the city wanted to place greater trust in developers and respond to clear public demand for parking at home.

“Of course, we hope people will take the city line to work, as in Keldnaland, simply because it will be faster and more convenient. But when they get home, I think most people want to have a car in a parking space for their own needs,” he said.