As team Total Iceland has repeatedly discussed there is a Klondike-like gold rush going on in the tourist industry in Iceland where its all about making as much money as possible with the least amount of work. Same shit is taking hold on many financially strapped home owners which have taken to renting out rooms, flats or even whole houses to tourists. Now, authorities are striking back.
Those home owners more often than not rent spaces without paying any official taxes or licensing and this has made the union of the tourist industry mad as hell. Naturally, they want their piece although most hotels and hostels in the country are more or less sold out.
But as history teaches, he who has everything wants more, and so it is with the tourism industry which have compelled the government into action.
What this means is you should take extra care of renting a place from just anyone for you might find a closed door when you actually do arrive. This will happen if authorities are really serious about closing unofficial accommodation down. Make sure, if possible, the person renting you has a permit. Else you might find yourself walking the streets of Iceland with nowhere to stay.