Look it up on Google Earth. That's one tiny end of a larger island. The house is about a mile or two from the airport. It looks like the photo was taken from a plane on the approach to the airport having two intersecting runways.
They are a few miles from the yacht club and marina in Vestmannaeyjabaer. Looks beautiful, but not quite as isolated as the photograph makes it appear.
Heilsa ! The Vestmann ( Westman ) Islands are in the middle of nowhere, is cold enough to freeze the boltis off a billy goat, wind blows fifty miles an hour all the time , and makes mainland Iceland look cosmopolitan in comparison. Paradise? Hah! There's a reason Iceland has one of highest rates of per capita alcohol consumption on planet !