The farm Uthlid was first named the Outer Hlid and was a church site from the beginning of christianity in Iceland. The first farmer was Asgeir Ulfsson, the son in law of Ketilbjorn the Old of Mosfell. His son was Chieftain Geir, who lived there as well. His burial mound is somewhere near the farm and the ruins of a pagan temple are still visible. Near them is a concave boulder, which probably was used for the blood of the animal offerings.
During the Catholic period the churches of Uthlid were dedicated to the Holy Mary and they were annexed to the parsonage Middalur until they were annexed to Torfastadir by law in 1880. They were served from there and the bishopric Skalholt until 1963. After the church was swept away by a strong gust of wind in 1936, the services too place in the living room of the farm.
In the year 2006 Bjorn Sigurdsson farmer in Uthlid built a new church in Uthlid.