The climate conundrum and social responsibility issues with a second home

Holiday homes have always had an allure as a personal retreat in an appealing destination, often somewhere warm and sunny, close to a ski slope or in a foreign city. They offer the promise of an easy getaway and instant relaxation, and for some owners a source of regular rental income to defray at least part of the cost. Today, however, investors in a second property need to take social and environmental considerations into account when deciding where and what to buy.

Demand for second homes soared during the Covid-19 pandemic. City living, especially for apartment-dwellers, felt claustrophobic, while working from home – any home – allowed individuals greater freedom of movement. The surge in property purchases ebbed somewhat in 2022 after the lifting of lockdown restrictions, while in some sectors the post-pandemic working environment has proved less flexible than it initially appeared. Nevertheless, second homes remain a significant aspiration for many families.

However, there is a growing realisation that second homes can come at a cost to the planet and society. Would-be buyers are also increasingly aware that they need to take climate change risks into account: a seafront villa in Florida might be under water in a few years’ time, while a ski chalet could soon enjoy a view only over bare rock. A concrete and glass apartment building in the heart of a city could turn out to be at the epicentre of a heat sink.

There is a growing realisation that second homes can come at a cost to the planet and society.

Carbon footprint

There is also the carbon footprint caused by getting to and from a holiday home, especially if it involves flying and is used several times a year; emissions from driving also add up. France has 3.4 million second homes that entail vast amounts of carbon-intensive travel annually; so do other countries including Italy, Spain and Portugal.

For the super-rich, who are mostly likely to have multiple homes around the world, the potential for harm to the environment is even greater. According to research by insurer AIG, the very wealthiest US citizens have up to nine homes in various foreign locations. Often they travel there by the most carbon-intensive option of all – private jet.

Second homes also have a social impact. Some municipalities across Europe have become ghost towns outside the main holiday season because most homeowners are seasonal and temporary. This has a negative effect on the local economy, but also creates a disconnection between salaries in the area and the affordability of housing.

In some countries second homes – along with short-stay rental properties, which may be the same homes – are blamed for having a destructive impact on communities, damaging local cohesion. In some countries owning two homes is problematic at a time when there is a general shortage of affordable housing.

For many people, these considerations may not be enough to dissuade them from fulfilling the dream of owning a holiday home. However, it could make ownership more expensive. Governments across Europe increasingly recognise the problems of unregulated second-home ownership and are imposing higher taxes, while lenders are tightening their criteria. Owners may feel the financial impact – especially if they do not act responsibly.

Responsible home ownership

However, there are ways to be a more responsible second-home owner, helping to preserve the areas that people have come to enjoy and forge local relationships without disadvantaging or antagonising the permanent residents. It might also head off the risk of higher-than-expected costs resulting from governments clamping down on non-resident property owners.

Perhaps the most important step is to engage with the local community as much as possible.

Perhaps the most important step is to engage with the local community as much as possible. Permanent residents are likely to be particularly annoyed by incomers who buy property mainly for use as a holiday let, which in many cases can mean a stream of careless and often noisy short-stay visitors – a problem that has become significantly worse since the emergence of Airbnb. Buying a home that you intend to use regularly in an area where you can participate in local life, even on an occasional basis, will help.

Equally important is to consider your transport options. If the only realistic means of travel to and from a holiday home is a carbon-intensive flight, this will levy an ongoing climate cost through greenhouse gas emissions. It is far more environmentally considerate to select a property in a location where it’s feasible to drive (ideally in an electric car) or, better, take the train.

Reviving disused properties

If you build a house from scratch or renovate a derelict home, rather than buying an existing property, you aren’t taking a home out of circulation. There are schemes throughout Europe to promote responsible construction that can make it easier to finance the building or refurbishment of a second home.

For example, in 2020, the Italian government launched an ambitious scheme enabling homeowners to finance 110% of energy efficiency renovation work through tax deductions; municipalities there have also sold for a pittance or even given away properties in declining villages to foreign occupants who are committed to help revive shrinking communities. In France, a reduced rate of value-added tax applies for work relating to the improvement, conversion and repair of residential property, and it is even lower for work that boosts energy conservation.

But purchasers must also increasingly be sure that the second home they choose is not in a vulnerable location. Many parts of the world, including areas of Europe, are at risk from a significant impact from changes to weather patterns, including flooding, drought and rising sea levels.

Canada, Germany and Japan are among the 10 countries expected to be most affected by climate change. Germany experienced catastrophic flooding in July 2021 that killed nearly 200 people; between December 2023 and January 2024, areas of the country saw their highest rainfall since records began in 1881. In France, Greece, Spain and Portugal summers are increasingly punctuated by wildfires and drought, including in some popular holiday regions.

While owning a second home is a cherished ambition for many families, the social and environmental cost can no longer be ignored. A responsible ownership approach that seeks to avoid adding to climate stress and brings benefits to the local region and community is one way of answering those questions.