Law and Policy on Landlord-Tenant Law - Based on actual investigation in Hokkaido -

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1. The lease of the ground on which a tenant builds a house or building, is common in Japanese cities. This research aims to investigate the social and economic conditions concerning such leases, formulate a theory for these conditions with regard to urbanization, and propose a scheme to examine landlord and tenant legislation.2. The city area is to be demarcated into three parts; (a) the heart of the city, (b) the suburban area, where the housing lands are mixed among agricultural land, and (c) the mainly residential area, situated between (a) and (b). In (b) area there are few ground-leases, because the land owner sells their land, the price of which is not likely to rise. Most residential ground-leases are found in areas (a) and (c), which developed as urban district between the 1890's (the middle of the Meiji era) and the 1960's (the beginning of the post warhigh economic growth era). During this period, the growing city activities made possible relatively large amount of rent, and yet the land price did not increase. Consequently, landowners were more willing to let their land for lease, than to sell. Since the 1960's, the upward tendency of land prices reduced the proportion of rent to the land value in areas (a) and (c). The ground-lease became less profitable, and owners began to develop the land by themselves in order to obtain greater return. The ground-leases continue to be used only for such merchants or business that need specific plot of land.3. This scheme which illustrates the social economical conditions of ground lease will help to examine the impact of the proposed relaxation of the landlord-tenant regulations.