Switzerland vote to limit the supply of second homes

The Swiss people have voted in a referendum, which took place on Sunday 11 March, to prohibit the construction of new second homes in Switzerland.

There will be no more second homes built in all the 650 communes (local councils) of Switzerland where the number of second homes is already more than 20% of the total housing stock.

The proposal to impose a 20% ceiling on the volume of second homes in any community was opposed by Switzerland’s alpine ski resorts, as well as estate agents and house builders, due to concerns about the potential adverse impact on local economies, particularly those which are heavily reliant on the construction sector.

“This means in effect that in there will be no new properties built in future in any of the ski resorts in Switzerland,” said Simon Malster of Investors in Property.

The move will inevitably restrict the supply of holiday home in Switzerland. But prospective holiday home purchasers still have an opportunity to invest in a second home in Switzerland this year as the prohibition does not come into force until 1 January 2013.

“This is the last chance to have your dream chalet or apartment built to order,” Malster added.