Buying up properties or relieving debt obligations

The government is looking into buying all residential properties in Grindavík, but still thinks it is too early to make such a drastic decision.

This was revealed at the press conference with the government this afternoon, where the government was introducing what measured were in the charts because of the disastrous effects of the earthquakes and volcanic activity near the town. All political parties were kept in the loop in a meeting that ended just after noon today.

Raising subsidies for wages and housing

Katrín Jakobsdóttir, the Prime Minister, says that the residents of Grindavík will continue to receive wage subsidies and housing grants. The amount will be increased and further purchases of apartments will be made to address short-term problems through Bríet leasing company.

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"Very difficult meeting"

She also said that it is impossible to answer conclusively whether Grindavík is suitable for residence in the future. “We need to offer solutions to the people of Grindavík because we cannot assume that they will be able to return home in the coming months and years,” Jakobsdóttir says.

Therefore, the government is facing the question whether it would be best to buy up all apartments or housing in Grindavík or whether it would be better to allow people to get their equity they have in their homes so that they can find housing elsewhere.

Seeking legal advice

It was not decided whether the housing would be bought from the residents or whether they would be relieved of their debt obligations to the loan institutions and at this time it would be best to leave a decision on ownership of the housing for the future.

Two objectives are going to be in the forefront. On one hand, it is to eliminate the uncertainty of the Grindvík residents but also to consider whether the settlement is habitable for the future.

She says that legal advice needs to be sought regarding what legal situation arises if the housing would be bought.