[2] In 1968, the British Government bought Laufásvegur 31 and the old farmhouse which was there was donated to the Reykjavik Museum and moved to the heritage site at Árbæjarsafn.

[1] When the embassy was redeveloped in the 1990s, it was decided that the location was too large for Britain's needs and so it looked for another partner to share it with.

At the same time the German government was also looking for a new location and so agreed to share building and facilities at Laufásvegur 31.

It was opened on 2 June 1996, in the presence of Malcolm Rifkind, Werner Hoyer, and Halldór Ásgrímsson.

A plaque inside reads "the first purpose built co-located British-German chancery building in Europe".