Ministry of Land, Infrastructure, Transport and Tourism to create low-interest loan system for renting vacant homes for people raising children and low incomes

The Ministry of Land, Infrastructure, Transport and Tourism will create a system to provide low-interest loans to businesses that renovate vacant houses and provide them as rental housing for families with children or low-to-medium income earners. As the problem of vacant houses becomes more serious across the country, the aim is to encourage effective use of rental properties by supporting financing. Related costs have been included in the budget request for fiscal year 2027.

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Among the businesses involving vacant houses, some companies have already opened their businesses nationwide, renovating and selling purchased properties. However, there are few cases of its use for rental purposes, and it is said to be limited to some small businesses.

When a business operator purchases a property before renovating it, it is difficult for financial institutions to accept vacant houses as collateral due to their low asset value. Currently, it is difficult to raise funds to expand the business. To this end, a system will be established in which the government will utilize the operating profits of funds contributed to the Japan Housing Finance Agency, and the agency will provide loans at low interest rates to finance renovations.

When providing financing, we will also place emphasis on collaboration with local governments that are promoting measures to prevent vacant homes. For example, it is envisaged that preferential financing will be given to businesses that provide housing for families with children in line with the urban development goals of local governments.

Similar support will be available not only for general vacant houses but also for renovating dilapidated public housing and using it as rental housing.