Faroese government allocates 2 million per month for housing subsidies

The Faroese government expects its new housing subsidy scheme to cost 6 million for the last three months of this year, according to a report by public broadcaster Kringvarp Føroya. The programme is set to launch on 1 September, with emergency funding now being requested to implement it.

Under the government’s proposed supplementary budget—due for its first reading in parliament today—500,000 krona has been earmarked for the public works agency Almannaverkið to administer the subsidies. Additional staff will need to be hired to handle the rollout.

Officials stress that the budget line must also be extended into 2027 to ensure full operation of the scheme. The total estimated cost for the final quarter of 2026 alone is 6 million krona.