Contractors say housing projects could help them avoid bankruptcy

Many contractors have land and are ready to build homes under Iceland’s general housing scheme to avoid going bankrupt, Social Affairs and Housing Minister Ragnar Þór Ingólfsson said, according to mbl.is. He did not cite specific analysis or data to support the claim.

Ingólfsson was responding in parliament to questions from Independence Party MP Árni Helgason about a bill on general housing. The minister also said about 2,400 homes remained unsold and that his ministry was considering ways to address the situation, including a rent-to-own scheme.

The bill would allow the Treasury to finance municipalities’ initial contributions towards building homes under the scheme. Helgason questioned the evidence that contractors with unsold homes and high financing costs could take on substantial new construction through it.

Helgason also criticised the bill’s fast passage through parliament’s welfare committee. He said it had not appeared in the public consultation portal or, as far as he could tell, been presented to stakeholders. The bill went directly to the committee on November 5, and opposition members were told it would be processed at that meeting. Requests to hear from guests, seek written submissions and review the proposal further were rejected, he said.

Ingólfsson said the government had initially intended to send the bill to the committee before a parliamentary recess for a Nordic Council session, which may explain the delay. He also said the committee majority determined its working procedures.