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Home Press releasesProperty marketTwo prime London markets driving second home market activity, as hotspots revealed

Two prime London markets driving second home market activity, as hotspots revealed

The latest research from London lettings and estate agent, Benham and Reeves, has shown that while second home purchases account for 23% of total market activity across England, this climbs to as high as 49% in the nation’s second home hotspots.

Benham and Reeves analysed the latest Gov figures* on stamp duty receipts for residential purchases, looking at the market split between those received via primary property purchases versus those that came via purchases paying the higher rate.

The higher rate of stamp duty is applied to purchases of additional dwellings such as second homes or buy-to-let purchases.

The figures show that annually (2022/23), the government registered just over one million residential transactions via stamp duty receipts. 233,800 of these came via second home purchases, meaning that these additional purchases accounted for 23% of total market activity.

Regionally, the North East saw the largest level of second home buyer activity, with 27% of all stamp duty receipts received being attributed to second home purchases. London and the North West ranked second (27%), while the South West was home to the lowest proportion of second home purchases at 19%.

At local authority level, the prime London markets of Westminster and Kensington and Chelsea top the table. Across Westminster, 49% of all residential purchases were for second homes, while in Kensington and Chelsea they accounted for 46% of total market activity.

Camden also makes the top 10 where 36% of all homes purchased annually were second homes.

However, while these are likely to be largely attributed to high-end homebuyers, particularly foreign buyers, it’s the buy-to-let market that is largely driving second home market activity elsewhere across the nation.

In Liverpool, 40% of all residential purchases in 2022/23 were second homes, with Burnley (36%), Middlesbrough (36%), Manchester (36%), Slough (35%), Enfield (35%) and Nottingham (35%) also making the top 10.

Director of Benham and Reeves, Marc von Grundherr, commented:

“Despite the government’s best efforts to deter second home purchases, particularly by buy-to-let investors, we’re still seeing a high proportion of market activity come as a result of second home buyers.

While this is no doubt due to high-end buyers across the prime London market, other areas are more likely to have been driven by landlords who continue to see the rental market as a profitable one, even if their margins have been dampened in recent years.”

Nation and Regions – Stamp Duty Land Tax (SDLT) transactions & receipts 2022-23
Region/Local Authority Residential transactions n HRAD transactions n HRAD as proportion of Residential transactions %
North East 52,100 14,100 27%
London 132,200 34,200 26%
North West 139,900 36,100 26%
Yorkshire and Humberside 102,100 24,300 24%
West Midlands 99,800 22,700 23%
East Midlands 95,100 20,100 21%
South West 115,800 24,400 21%
East of England 121,200 23,700 20%
South East 180,300 34,000 19%
England 1,038,400 233,800 23%

Local Authorities – Stamp Duty Land Tax (SDLT) transactions & receipts 2022-23
Region/Local Authority Residential transactions n HRAD transactions n HRAD as proportion of Residential transactions %
Westminster 4,300 2,100 49%
Kensington and Chelsea 2,800 1,300 46%
Liverpool 8,200 3,300 40%
Burnley 2,200 800 36%
Middlesbrough 2,800 1,000 36%
Manchester 8,400 3,000 36%
Camden 2,800 1,000 36%
Slough 1,700 600 35%
Enfield 4,000 1,400 35%
Nottingham 4,900 1,700 35%
Harrow 2,900 1,000 34%
Blackpool 3,300 1,100 33%
Salford 5,400 1,800 33%
Scarborough 2,700 900 33%
North Norfolk 2,100 700 33%
City of London 300 100 33%
Redbridge 3,300 1,100 33%
Brent 3,700 1,200 32%
Lincoln 1,900 600 32%
Hounslow 3,800 1,200 32%
Birmingham 14,900 4,700 32%
Hyndburn 1,600 500 31%
Stoke-on-Trent 4,800 1,500 31%
Coventry 5,500 1,700 31%
South Lakeland 2,300 700 30%
Kingston upon Hull, City of 4,600 1,400 30%
Wolverhampton 3,300 1,000 30%
Hammersmith and Fulham 3,300 1,000 30%
County Durham 10,900 3,300 30%
Leicester 4,000 1,200 30%
Cambridge 2,000 600 30%
Oxford 2,000 600 30%
Norwich 2,700 800 30%
North East Lincolnshire 3,400 1,000 29%
Barnet 5,800 1,700 29%
Darlington 2,400 700 29%
Isle of Wight 3,100 900 29%
Hartlepool 2,100 600 29%
Oldham 3,500 1,000 29%
Preston 3,500 1,000 29%
Derbyshire Dales 1,400 400 29%
Portsmouth 3,500 1,000 29%
South Hams 2,100 600 29%
Torbay 2,800 800 29%
Redcar and Cleveland 2,500 700 28%
Bolton 5,000 1,400 28%
Derby 4,300 1,200 28%
Pendle 1,800 500 28%
Tower Hamlets 5,400 1,500 28%
Hastings 1,800 500 28%
Cotswold 1,800 500 28%
Luton 2,900 800 28%
Cornwall (incl Isles of Scilly) 11,700 3,200 27%
Mansfield 2,200 600 27%
Oadby and Wigston 1,100 300 27%
Eastbourne 2,200 600 27%
Walsall 3,700 1,000 27%
Doncaster 6,300 1,700 27%
Blackburn with Darwen 2,600 700 27%
Barking and Dagenham 2,600 700 27%
Sandwell 4,100 1,100 27%
Barrow-in-Furness 1,500 400 27%
Hertsmere 1,500 400 27%
King’s Lynn and West Norfolk 3,000 800 27%
Thanet 3,000 800 27%
Sunderland 4,900 1,300 27%
Ealing 5,300 1,400 26%
Halton 1,900 500 26%
Calderdale 3,800 1,000 26%
Peterborough 3,800 1,000 26%
Watford 1,900 500 26%
Newcastle upon Tyne 5,400 1,400 26%
Lancaster 2,700 700 26%
Bradford 8,500 2,200 26%
Stockton-on-Tees 3,900 1,000 26%
Bournemouth, Christchurch and Poole 8,200 2,100 26%
Hillingdon 4,300 1,100 26%
Sefton 5,100 1,300 25%
Barnsley 5,100 1,300 25%
Brighton and Hove 5,500 1,400 25%
Gateshead 3,600 900 25%
Northumberland 7,200 1,800 25%
South Tyneside 2,400 600 25%
Tameside 4,000 1,000 25%
Trafford 4,000 1,000 25%
Craven 1,200 300 25%
Richmondshire 800 200 25%
Great Yarmouth 2,000 500 25%
Ipswich 2,400 600 25%
Reading 3,200 800 25%
Southampton 4,000 1,000 25%
Cheltenham 2,400 600 25%
Exeter 2,400 600 25%
North Devon 2,000 500 25%
Sheffield 8,900 2,200 25%
Leeds 13,900 3,400 24%
Rochdale 3,700 900 24%
Telford and Wrekin 3,700 900 24%
Southend-on-Sea 3,700 900 24%
West Suffolk 3,700 900 24%
Islington 2,900 700 24%
Kingston upon Thames 2,900 700 24%
Carlisle 2,500 600 24%
Dartford 2,500 600 24%
Southwark 4,200 1,000 24%
Bury 3,400 800 24%
Wigan 6,800 1,600 24%
Broxbourne 1,700 400 24%
Welwyn Hatfield 1,700 400 24%
Richmond upon Thames 3,400 800 24%
Canterbury 3,000 700 23%
Wandsworth 7,300 1,700 23%
Eden 1,300 300 23%
Knowsley 2,600 600 23%
Wyre 2,600 600 23%
York 3,900 900 23%
Boston 1,300 300 23%
Gloucester 2,600 600 23%
Merton 3,500 800 23%
Sutton 3,500 800 23%
Bath and North East Somerset 3,500 800 23%
Chorley 2,200 500 23%
Fylde 2,200 500 23%
Epping Forest 2,200 500 23%
Greenwich 4,400 1,000 23%
St. Helens 3,100 700 23%
North Tyneside 4,000 900 23%
Warrington 4,000 900 23%
Newham 4,000 900 23%
Plymouth 4,900 1,100 22%
Allerdale 1,800 400 22%
Kirklees 7,200 1,600 22%
Bassetlaw 2,700 600 22%
St Albans 2,700 600 22%
Croydon 6,300 1,400 22%
Havering 4,500 1,000 22%
Chichester 2,700 600 22%
Gravesham 1,800 400 22%
Runnymede 1,800 400 22%
Wirral 5,900 1,300 22%
East Suffolk 5,000 1,100 22%
Medway 5,000 1,100 22%
Charnwood 3,200 700 22%
Hackney 3,200 700 22%
Rotherham 4,600 1,000 22%
West Lindsey 2,300 500 22%
Newcastle-under-Lyme 2,300 500 22%
Folkestone and Hythe 2,300 500 22%
Haringey 3,700 800 22%
Copeland 1,400 300 21%
Rossendale 1,400 300 21%
East Staffordshire 2,800 600 21%
Solihull 4,200 900 21%
Three Rivers 1,400 300 21%
Thurrock 2,800 600 21%
Elmbridge 2,800 600 21%
Gosport 1,400 300 21%
Windsor and Maidenhead 2,800 600 21%
Torridge 1,400 300 21%
North Lincolnshire 3,300 700 21%
Lambeth 5,200 1,100 21%
Bolsover 1,900 400 21%
Colchester 3,800 800 21%
Tendring 3,800 800 21%
Bromley 5,700 1,200 21%
Ashfield 2,400 500 21%
Rugby 2,400 500 21%
Dover 2,400 500 21%
Wakefield 6,800 1,400 21%
Cheshire East 9,400 1,900 20%
Broxtowe 2,000 400 20%
Chesterfield 2,000 400 20%
East Lindsey 3,000 600 20%
High Peak 2,000 400 20%
North Northamptonshire 7,500 1,500 20%
Worcester 2,000 400 20%
Epsom and Ewell 1,500 300 20%
Spelthorne 2,000 400 20%
Woking 2,000 400 20%
Bristol, City of 8,500 1,700 20%
Dorset 8,000 1,600 20%
Sedgemoor 2,500 500 20%
Teignbridge 3,000 600 20%
West Northamptonshire 8,600 1,700 20%
East Riding of Yorkshire 8,100 1,600 20%
Bexley 4,100 800 20%
East Devon 3,600 700 19%
Somerset West and Taunton 3,600 700 19%
South Kesteven 3,100 600 19%
Shropshire 6,200 1,200 19%
Warwick 3,100 600 19%
Milton Keynes 6,200 1,200 19%
New Forest 3,100 600 19%
Gedling 2,600 500 19%
Stafford 2,600 500 19%
Tunbridge Wells 2,600 500 19%
Dudley 4,700 900 19%
Swindon 4,700 900 19%
Erewash 2,100 400 19%
Chelmsford 3,700 700 19%
Stockport 5,300 1,000 19%
Bromsgrove 1,600 300 19%
Tamworth 1,600 300 19%
Harlow 1,600 300 19%
Newark and Sherwood 2,700 500 19%
Ashford 2,700 500 19%
Waverley 2,700 500 19%
Buckinghamshire 10,300 1,900 18%
Arun 3,800 700 18%
North Somerset 4,900 900 18%
South Gloucestershire 6,000 1,100 18%
Cheshire West and Chester 7,100 1,300 18%
Melton 1,100 200 18%
Fenland 2,200 400 18%
South Cambridgeshire 3,300 600 18%
Adur 1,100 200 18%
Lewes 2,200 400 18%
Reigate and Banstead 3,300 600 18%
Rother 2,200 400 18%
Harrogate 3,900 700 18%
Amber Valley 2,800 500 18%
South Derbyshire 2,800 500 18%
Dacorum 2,800 500 18%
Guildford 2,800 500 18%
Winchester 2,800 500 18%
Ribble Valley 1,700 300 18%
Staffordshire Moorlands 1,700 300 18%
Bedford 3,400 600 18%
Brentwood 1,700 300 18%
Cherwell 3,400 600 18%
Crawley 1,700 300 18%
West Lancashire 2,300 400 17%
Harborough 2,300 400 17%
Hinckley and Bosworth 2,300 400 17%
North Hertfordshire 2,300 400 17%
Havant 2,300 400 17%
West Oxfordshire 2,300 400 17%
Mendip 2,300 400 17%
Rushcliffe 2,900 500 17%
Nuneaton and Bedworth 2,900 500 17%
Herefordshire, County of 3,500 600 17%
Lewisham 4,700 800 17%
Hambleton 1,800 300 17%
Ryedale 1,200 200 17%
Blaby 1,800 300 17%
North Warwickshire 1,200 200 17%
Stratford-on-Avon 3,600 600 17%
Wyre Forest 1,800 300 17%
Waltham Forest 4,200 700 17%
Bracknell Forest 2,400 400 17%
Surrey Heath 1,800 300 17%
West Berkshire 3,000 500 17%
Worthing 2,400 400 17%
South Somerset 3,600 600 17%
Maidstone 3,700 600 16%
Wokingham 3,700 600 16%
North West Leicestershire 2,500 400 16%
Lichfield 2,500 400 16%
Wychavon 2,500 400 16%
Tonbridge and Malling 2,500 400 16%
Stroud 2,500 400 16%
Selby 1,900 300 16%
Cannock Chase 1,900 300 16%
South Staffordshire 1,900 300 16%
Babergh 1,900 300 16%
Basildon 3,200 500 16%
South Norfolk 3,200 500 16%
South Oxfordshire 3,200 500 16%
South Ribble 2,600 400 15%
North Kesteven 2,600 400 15%
Huntingdonshire 3,900 600 15%
Maldon 1,300 200 15%
Stevenage 1,300 200 15%
West Devon 1,300 200 15%
East Hertfordshire 3,300 500 15%
Vale of White Horse 3,300 500 15%
Fareham 2,000 300 15%
Rushmoor 2,000 300 15%
Sevenoaks 2,000 300 15%
Wiltshire 10,000 1,500 15%
North East Derbyshire 2,100 300 14%
Rutland 700 100 14%
Redditch 1,400 200 14%
East Cambridgeshire 2,100 300 14%
Eastleigh 2,800 400 14%
Hart 2,100 300 14%
Horsham 2,800 400 14%
Mid Sussex 3,500 500 14%
Mid Devon 1,400 200 14%
South Holland 2,200 300 14%
Malvern Hills 1,500 200 13%
Breckland 3,000 400 13%
Broadland 3,000 400 13%
Castle Point 1,500 200 13%
Test Valley 2,300 300 13%
Swale 3,100 400 13%
East Hampshire 2,400 300 13%
Mole Valley 1,600 200 13%
Tandridge 1,600 200 13%
Tewkesbury 2,400 300 13%
Central Bedfordshire 6,600 800 12%
Basingstoke and Deane 3,300 400 12%
Wealden 3,300 400 12%
Braintree 3,400 400 12%
Rochford 1,700 200 12%
Uttlesford 1,700 200 12%
Forest of Dean 1,700 200 12%
Mid Suffolk 2,600 300 12%

Data on HRAD transactions as a proportion of all residential transactions sourced from Gov UK – Stamp Duty Statistics (2022/23 – latest available)

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About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.

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