Municipalities across Japan can tackle the blight of "akiya" abandoned vacant homes under a revised law that took effect on Dec. 13 aimed at penalizing neglectful property owners.

Under the revised vacant houses special measures law, municipalities can identify abandoned homes showing signs of neglect, such as broken windows or damaged roofs.

If these problems are not resolved, such properties will lose eligibility for tax breaks for fixed properties.

Efforts of municipalities will be key to reducing the hundreds of thousands of dangerous vacant houses that litter the landscape.

The real estate tax for residential land is reduced to one-sixth or one-third of the property's appraised value, depending on the size of the lot.

Under the previous system, vacant homes at risk of collapse were designated as a “specified vacant home” and lost their eligibility for the tax credit if the municipality advised improvements.

Under the new law, municipalities can designate homes in a state of a risk of becoming specified vacant homes if left unattended as “poorly managed long-unoccupied homes.”

Those homes will also lose eligibility for tax credits, just like specified vacant homes.

The aim is to encourage owners to promptly provide maintenance on their properties, preventing them from collapsing due to neglect by effectively implementing a tax increase.

The land ministry established criteria to determine what constitutes a poorly managed unoccupied home, including the condition of damaged or deteriorating houses and fences, from the standpoints of safety, hygiene and appearance.

“Even in the same condition, priorities differ depending on whether the home is located in a residential area or a mountainous region,” a ministry official said. “Municipalities will make comprehensive decisions based on the surrounding environment.”

Property taxes are calculated annually as of Jan. 1.

Many municipalities are expected to survey vacant homes and give guidance for improvements next year.

It is likely that homes advised for improvements will lose eligibility for tax credits, starting from the January 2025 calculation.

According to a 2018 survey by the internal affairs ministry, there were 3.49 million vacant homes not being used for residential purposes, about 1.9 times the number from 20 years ago.

Of these, roughly 235,000 were in poor condition.

One reason for the neglect is believed to be that property taxes are lower when a home is left vacant compared to demolishing it and clearing the land.

The revised law also encourages the utilization of vacant homes,

Municipalities will designate downtowns and tourist spots as “utilization promotion zones” to facilitate rebuilding.

Incorporated nonprofit organizations involved in vacant homes will be newly designated as “management and utilization support corporations” to provide more information to owners and those who wish to utilize these properties.

HITACHINAKA AN EARLY ADOPTER

The Hitachinaka city government in Ibaraki Prefecture has independently designated poorly managed long-unoccupied homes since 2016, urging owners to make repairs and prevent neglect.

City officials visit abandoned homes to check their condition based on a survey form.

They score about 40 areas, including detachment of roofs and exterior walls; decay and damage of gates, fences and retaining walls; littering and illegal dumping; and overgrowth of trees.

If a property reaches a certain score, it is considered to be poorly managed. Vacant homes located in residential areas or facing roads are given additional points.

A total of 39 homes were designated as poorly managed from fiscal 2016 to fiscal 2022.

Once designated, the city government encouraged the owners to make improvements by sending photographs showing the home’s condition and providing contact information on management companies.

These efforts led to repairs to the homes and the cutting down of overgrown trees.

Many of the owners live far from the city. Officials have even traveled to Goto island in Nagasaki Prefecture to persuade property owners to take action. The city bears the cost of the visit.

“Even in a state of poor management, some owners think ‘it’s still OK’ and leave (their vacant homes) as is,” a city official said. “With the legal revision that taxes for fixed properties may increase, quick improvements are expected.”