Today, on November 10th 2025, Parliament is set to vote on the proposed Housing Lease Bill. If passed, it will lead to an increase in rent for student housing. Why? Because the bill makes it illegal to raise rent during the first 12 months of a lease agreement.
This decision is positive in itself, and predictability is important for tenants on the general rental market. But students are not on the general rental market — they live in student housing operated by non-profit institutions such as the Student Welfare Foundation (Félagsstofnun stúdenta) and the Student Housing Association (Byggingafélag námsmanna), whose purpose is to keep rent as low as possible. The purpose of student housing is, among other things, to ensure that students have a stable home while studying, to guarantee students from outside the capital access to university education, and to support students who are starting families.
Currently, rent in student housing is kept low by linking it to the consumer price index. With this new bill, FS and BN would instead have to estimate inflation for the next 12 months in advance and set the rent accordingly when the lease begins. This means that rent would be increased based on predicted future inflation — not current costs.
In other words: students will end up paying more for rent than they do now.
Predictability is good — but who is paying the price for it?
Students demand that Parliament vote against this worsening of living conditions for students and learners across the country.
Arent Orri J. Claessen, president of the Student Council
Viktor Pétur Finnsson, loan officer of the Student Council
The article was first published by Vísir on the 10th of November 2025.
