From next month, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) will make it a condition of the loan that the long-term fixed housing loan "Flat 35" meets the "energy conservation standards" set by the government. The aim is to further encourage energy-saving measures in homes.
"Flat 35" is a housing loan provided by the Japan Housing Finance Agency in cooperation with private financial institutions, and can be provided at a fixed interest rate for up to 35 years.
The Ministry of Land, Infrastructure, Transport and Tourism, which has jurisdiction over the organization, will make it a requirement for loans to meet the "energy conservation standards" set by the government from next month, which is the new fiscal year.
Specifically, in order to improve heat insulation, it is necessary to ensure that the thickness and structure of materials such as the exterior walls and window glass of houses meet standards, and to reduce energy consumption to a certain extent by installing and utilizing efficient equipment such as air conditioning and lighting.
As for the "Energy Conservation Standards" set by the government, from fiscal 2025, all newly built buildings, including residences, will be required to meet these standards as measures for decarbonization progress.
According to the Ministry of Land, Infrastructure, Transport and Tourism, as of fiscal 2019, about 20% of new houses do not meet the "Energy Conservation Standards", and they would like to promote energy-saving measures by making it a condition for "Flat 35" loans.
In addition, financial institutions have been lowering interest rates on energy-saving housing loans that meet certain conditions.