Housing in the Faroe Islands

In the Faroe Islands you can rent or buy a house, an apartment or a room.

Rental prices and purchase prices vary greatly from home to home, and are determined by the market. The location and condition of the residence is of crucial significance to the price.

Loans for home purchase

Loans for home purchase are available from the Faroese banks.

You can ask them about your possibilities for obtaining a loan.

In addition, Bústaðir – the Faroese Housing Association – can provide low-interest loans for the conversion of existing homes in connection with energy-saving measures.

Finding housing in the Faroe Islands

Until recently, there was very little non-profit (council) housing available in the Faroe Islands, for which reason both the rental and the buying markets have been private. Exceptions to this have included rental accommodation belonging to Landssygehuset (the National Hospital), large companies, and in some cases the larger municipalities.

The former housing loan fund (Húsalánsgrunnurin) was given a new and expanded legal basis for its work in 2011, and in this connection the fund changed its primary business in 2012 from a loan company to a general housing association, inspired by the Danish model.

In the past year, a number of legislative changes and executive orders have given Bústaðir a good starting-point for reaching its set goals. The association aims to provide 100 new apartments per year for rent until the year 2020. The association was founded in September 2013 and had already acquired 1,700 members by October 2013.

Bústaðir is active throughout the Faroe Islands, and works in close co-operation with the municipalities and other public authorities. Some projects have been completed, while many more are underway. At the Bústaðir website, you can find information about ongoing projects, membership, etc.

You can find a room, an apartment or a house to buy or rent by searching the Faroese social media, newspapers and portals.

The purchase of houses, summer cottages, apartments and building plots typically takes place via the websites of the real estate companies and privately practising lawyers.

Students

If you come to the Faroe Islands as a student and are looking for rented accommodation, you can first of all inquire at the upper secondary schools. Some schools have associated ‘school homes’ with rooms for rent for those students who live furthest away from the school. There are for example school homes in Tórshavn and Klaksvik in association with the technical schools, which are also intended for use by students at other schools. The school homes have furnished rooms for rent, with a shared kitchen and living room.

Apartments for employees

Some workplaces offer houses, apartments and/or rooms for rent for their employees. The National Hospital (Landssygehuset) in Tórshavn has for example apartments and rooms for rent to those who work at the hospital.  

Interest repayment

In the Faroe Islands, you can be reimbursed by the public authorities for part of the interest on the loan for your residence. You can obtain more information from your loan provider or from the tax authority TAKS on whether you have the right to interest support, and how to apply for it.