húsnæðisbætur

Húsnæðisbætur is a housing benefit program operated by the Government of Iceland that provides financial assistance to eligible households to help cover their housing costs. The scheme is established under the Húsnæðisbætur Law of 1979 and is administered by the Ministry of Finance through the Directorate of Housing. Its main objective is to reduce the proportion of income spent on rent or mortgage payments, thereby improving the overall economic well‑being of lower‑ and middle‑income families.

Eligibility for húsinigisbætur is based on a combination of factors including household income, size, the type of dwelling, and the location of the property. Applicants must normally reside in the property for a minimum period each year and can apply for the benefit either through an online portal or by submitting the required forms to the Directorate of Housing. The benefit is calculated as a fixed monthly amount, capped at a maximum that varies by region and by the categorisation of the residence (for example, rental versus owner‑occupied). In urban areas such as Reykjavík, the cap is higher to reflect the greater cost of housing.

The benefit can be claimed for a specified number of consecutive years, typically up to six, after which the household can apply for an extension given continued eligibility. Recipients may receive a monthly payment that represents a proportion of their rent or mortgage payment, and the payment is adjusted annually in line with changes in average rent prices and inflation.

Húsnæðisbætur has been an important element of Iceland’s social welfare system, with millions of dollars in payments distributed annually. The program has been subject to periodic reforms aimed at tightening eligibility criteria, reducing fiscal costs, and improving administrative efficiency. Despite these changes, húsinigisbætur remains one of the most widely used housing subsidies in Iceland, providing crucial relief to many households across the country.