ASÍ proposes rent controls and more non-profit housing

Iceland’s trade union confederation ASÍ is calling for rent controls, more non-profit housing and changes to public housing support in proposals ahead of its congress next week, mbl.is reports.

The proposals say municipalities should be legally required to plan for a set share of new homes to be non-profit housing. ASÍ also wants tenancy laws reviewed and public housing support refocused on people with lower incomes, first-time buyers and households facing heavy housing costs.

The confederation says inflation, high interest rates and housing costs are putting pressure on many households, particularly families with children, people on low incomes, indebted households and renters. It argues that raising charges on households, cutting unemployment rights or access to public services, or reducing support for families, renters and borrowers would be the wrong response.

ASÍ says housing prices in the capital region have risen almost twice as fast as first-time buyers’ incomes since the turn of the century. An average apartment there now costs more than 11 times an individual’s annual income, compared with about six times annual income around 2000.

The proposals attribute rising housing demand to population growth, more first-time buyers and changing needs, including fewer people per home. They also point to the displacement of Grindavík residents from their home community in autumn 2023. ASÍ says housing is an essential expense that households cannot opt out of, and that it weighs more heavily on people with lower incomes.

The confederation says the future of work and labour rights is tied to economic and social justice, and warns that technological and climate changes, demographic shifts and international uncertainty will affect jobs and workers’ living standards.