After defeating Vetrar, the arctic area is supposed to open so you can settle there, however after a few attempts this never happened. I did a fair bit of searching about it on the forums and one it may have been a result of him being outside his area. However the other times I killed him while he was still in the arctic. Every time the quest was initiated.
Apparently this has been an ongoing issue since the legendary heroes beta. Has there been any fixes for it? I read there was a mod to help, but apparently it broke with one of the updates.