Residents of the Icelandic town of Grindavík fear they may not be able to return to their homes after volcanic lava destroyed several houses and damaged water and electricity supplies.

The Fagradalsfjall volcano erupted for the second time in less than a month on Sunday morning, hours after the authorities had instructed residents to leave the fishing town in the south-west of the island after a “swarm” of mini-earthquakes suggested an eruption was imminent.

David Ingi Bustion, 31, an architect whose family has lived in the town for three generations, said the latest fissures had left Grindavík’s 3,800 residents in limbo, with some questioning whether the town would ever be habitable again.

“We don’t know what will happen now. It has thrown a question mark over people’s lives,” Bustion said. “A few houses have burned but the water pipes and electricity have been damaged so there is no heating and it’s been really cold.”

The volcano appeared to be less active on Monday but the Icelandic meteorological office said in a statement that the area was high-risk and new fissures could open without warning.

“It is difficult to estimate how long this eruption will last,” it added.

The eruption – the fifth to hit the Reykjanes peninsula since 2021 – places the residents of Grindavík in a new state of uncertainty.