(3) Development of the housing market environment that appropriately realizes varying housing needs

① Preparing a market that facilitates smooth trading of existing houses

The approaches outlined below have been promoted to prepare a market in which existing houses are smoothly tradable, on the basis of the “Comprehensive plan for renovation and distribution of existing home” (established in March 2012).

Since March 2013, Workshop on Utilizing and Promoting trades for existing homes has been hosted to debate programs that help promote the trades for existing homes.

(a) Preparing the market environment in which consumers can renovate their homes with an ease of mind

Consumers planning to renovate their homes are concerned about the cost and how to select the right contractors. Keeping the worried consumers reassuring is essential to an expanding the home renovation market.

Efforts currently taken in this regard include the Renovation Estimate Checking Service available from the Center for Housing Renovation and Dispute Settlement Support, in which consumers can receive consultation on specific quotations, and Free Expert Advice at local bar associations. FY2012 marked 535 renovation estimate checks and 722 free expert advice sessions on renovation construction.

To enhance the framework of providing information on the costs of renovation construction, Points to Check Renovation Estimate for Yourself, which summarizes considerations for consumers to remember in verifying quoted costs of renovation construction for themselves and Renovation Estimate Advice Manual for local governments and so on as a reference in answering consultations sought by consumers in connection with the costs of home renovation and so on were publicized from the Center for Housing Renovation and Dispute Settlement Support in June 2012. These two documents have since been widely known and disseminated.

In addition, the Center for Housing Renovation and Dispute Settlement Support released case studies derived from its consultation service and advices to consumers on March 7, 2013 to prevent troubles and to support consumers once they are involved in troubles.

In FY2012, there were 2,625 applications to the Defect Insurance on Renovation Work, which combines inspections on renovation work with warranties against defects in the works, and 495 applications to the Defect Insurance for Large-scale Renovation Work, which applies to large-scale renovation works for apartment houses.

Contractors seeking insurance must acquire registration with the Housing Insurance Company. The registration is subject to their possession of a construction license, proven performance and so on. The list of registered contractors is published on the Website of Association of Housing Warranty Insurers (AHWI), and it supports consumers in choosing contractors.

(b) Preparing the market climate in which consumers can purchase used houses with an ease of mind

As consumers consider purchasing a used house, they are fearful about the quality or performance of the used house. Expansion of the used house distribution market would not be possible without resolving such fears cherished by the consumers.

The Existing Housing Inspection Guidelines Review Conference is working to explore ways to secure the technical competencies of those, such as licensed architects, who are in a position to inspect and survey used houses and identify what are relevant items of inspections and surveys, their methods and so on, to promote the diffusion of a scheme of inspection under which third parties inspect and survey used houses and thus enable consumers to understand the conditions and quality of the properties they are about to purchase.

There were 2,117 applications to the Defect Insurance for Traded Existing Houses in FY2012, which is for inspections on used housing with warranties against defects in the housing. During the same fiscal year, defect insurance for traded existing houses -accessible to both consumers and traders and suited to dealings with an apartment- was inaugurated as an insurance product for trading used houses.

Like the Defect Insurance on Renovation Work system, the Defect Insurance for Traded Existing Houses system allows consumers to search through a list of registered traders at a website to aid in choosing traders.