Icelandic government to consider buying out Grindavík homeowners due to volcanic threat

During a recent press conference, Iceland’s government announced a long-term plan for Grindavík residents that’ll support the country’s homeowners looking to relocate after the recent volcanic eruption.

Iceland’s ministers announced some long-term measures that are still being finalised but will be put forth in a legislative bill in early February.


During the press conference, the country’s Prime Minister Katrín Jakobsdóttir stressed that the government is still working out the details, but that it was considering buying out Grindavík homeowners so they would have the funds to purchase housing elsewhere, or taking on the interest payments on their mortgages to relieve them of that financial burden.


Þórdís Kolbrún Reykfjörð Gylfadóttir, Iceland’s Finance Minister, added that government measures would impact other economic goals such as curbing persistent inflation.

In November 2023, Grindavík was evacuated due to strong earthquakes and the threat of volcanic eruption. Two eruptions have occurred since then, one in December and one more recently in January 2024.