The new housing benefits (húsnæðisbætur) replace the old rental benefits (húsaleigubætur). The most noticeable change is in the base amount which increases with the more people residing in the household, regardless of age. Furthermore, a parent whose child resides with them for at least 30 days a year can register the child as a household member even though the child is legally domiciled with their other parent.
The new housing benefits are income and asset related. Total income and total net assets of all household members aged 18 years and older, deplete housing benefits if they exceed the income threshold. The income threshold increases with the number of household members. All income, including pensions, social aid, grants, prizes and all capital income from lease, interest payments, dividends, and gain on sale of shares or real estate is taken into consideration when calculating housing benefits. Housing benefits cannot exceed 75% of the rental fee and are reduced by 9% of the sum of the total income exceeding the income threshold.
Housing benefits are depleted if the total household income exceeds the income threshold. Total assets of all household members aged 18 years and older, exceeding 6.5 million kr. begin to deplete benefit payments and are fully depleted when total assets exceed 10.4 million kr.
to calculate housing benefits
Family relations between the landlord and the tenant does not prevent the eligibility of benefits so long as the landlord does not live in the rented property himself.
The minimum rental period is now three months instead of six months as required in the previous system.
The application process for the new housing benefits system is electronic with efforts taken to minimalize supporting documentation in paper form.