The Finance Ministry plans to nearly double the rent for housing for national public servants in response to criticism that the prices are too low when compared with private-sector housing.
The ministry also officially unveiled Monday a plan to scrap some 56,000 of 218,000 civil servant housing units by the end of March 2017.
The rents will be raised in three stages starting in April 2014, with the final phase slated for April 2018. As a result, monthly rent for housing of up to 15 years old for senior government employees in Tokyo’s 23 special wards are expected to rise to ¥147,000 from the current ¥78,000 to ¥92,000.
Maintenance and repairs for public servant housing are expected to reach some ¥55 billion in fiscal 2016, while rent revenue would total only ¥28 billion if the rates are kept unchanged, according to the ministry.
The ministry believes it is necessary to double the rents so maintenance and repair costs will be covered entirely with rent revenue.