Up to 10,000 króna monthly increase in special housing aid
The City Council today unanimously voted to raise the maximum for combined housing benefits and special housing aid under Reykjavík City regulations from 100,000 to 110,000 króna.
Special housing aid is financial assistance for families and individuals in the rental market who need help paying rent, supplementing the regular housing benefits provided by the Housing and Construction Authority.
City of Reykjavík Rules on Special Housing Aid
Up to 10,000 króna increase per month
The changes will have the biggest impact on households with more than one person. This provides up to an additional 10,000 króna in support for families with children, married couples, or other cohabiting partners, unless the aid is reduced based on other criteria in Reykjavík City's special housing aid regulations.
| Before change – monthly payment | After change – monthly payment | |||||
| Number of residents | Housing benefits | Special housing aid | Housing benefits | Special housing aid | Increase | |
| 1 | 50,792 | 49,208 | 50,792 | 50,792 | 1,584 | |
| 2 | 67,553 | 32,447 | 67,553 | 42,447 | 10,000 | |
| 3 | 78,728 | 21,272 | 78,728 | 31,272 | 10,000 | |
| 4 | 85,331 | 14,669 | 85,331 | 24,669 | 10,000 | |
| 5 | 92,441 | 7,559 | 92,441 | 17,559 | 10,000 | |
| 6 or more | 99,552 | 448 | 99,552 | 10,448 | 10,000 | |
The increase in combined housing benefits and special housing aid is partly a response to high demand and a shrinking supply in the rental market, which has led to higher rental prices. The measure also responds to various amendments to the housing benefits regulation, as detailed in the City Executive Council meeting minutes.
The change takes effect Jan. 1, 2026. Officials estimate the proposal will cost approximately 180 million króna annually.