The surprise UK town suddenly swamped with second homes

Newcastle-under-Lyme, a town traditionally overlooked in discussions about second homes, has emerged as England’s surprise hotspot for second property ownership.

Once without a single second home in 2022, the Staffordshire town has seen a dramatic rise to 303 second homes in 2024, a more than tenfold increase in just two years.

While this figure is modest compared to hotspots like Cornwall or Brighton, the proportionate growth in Newcastle-under-Lyme is the largest in England, highlighting an unexpected trend far from the traditional locales of London or coastal retreats.

The surge in second homes is not limited to Newcastle-under-Lyme.

Across England, there are now 279,870 second homes, marking an 8.9 percent increase over two years.

Wandsworth, Lincoln, Solihull, and Nottingham have also seen notable spikes, while Brighton and Hove recorded the largest numerical increase, adding 1,506 second homes in a year.

Cornwall remains the epicenter of second-home ownership with 14,123 properties, one in every 20 dwellings. North Yorkshire and Kensington and Chelsea follow with 8,572 and 7,667, respectively.

Second homes range from holiday rentals like Airbnbs to “buy-to-leave” properties purchased as investments.

Newcastle-under-Lyme’s rise reflects changing dynamics as investors seek opportunities outside traditional hotspots, attracted by lower property prices and potential for growth.

The rapid growth in second homes has sparked concerns about the strain on local infrastructure and housing availability.

In Cornwall, where second homes dominate, residents face challenges such as housing shortages and inflated property prices.

A spokesperson from the Ministry of Housing, Communities and Local Government acknowledged the frustration in affected areas: “We are taking decisive action to protect communities by giving councils powers to charge a council tax premium on second homes and increasing Stamp Duty for additional properties.”

From April 2024, councils can impose a council tax premium of up to 100 percent on second homes, alongside higher Stamp Duty rates on additional properties.

As Newcastle-under-Lyme and other unexpected locations emerge as second-home destinations, the trend reshapes England’s property landscape.

While investment opportunities grow, local communities and governments grapple with the implications of this rising phenomenon.