Iceland minister proposes rent cap in housing bill

Ragnar Þór Ingólfsson, Iceland’s minister of social affairs and housing, has introduced a bill that would limit rent increases, mbl.is reports.

The proposal says landlords and tenants must agree on any regular rent increases when they sign a lease. If they do not, regular increases cannot be introduced later during the tenancy.

Where a lease allows for regular changes, it must state how often and by what method the rent will change. The bill lists three possible methods: adjustment in line with the consumer price index, a percentage agreed in advance, or a fixed amount agreed in advance.

The bill is based on the government’s priorities and is part of its efforts to support collective wage agreements. Their assumptions were breached after inflation exceeded the agreed threshold in August, according to the bill’s explanatory statement.