A seaside village that banned new holiday homes has split in half, creating a “tale of two estates.” In Beadnell, Northumberland, the new development, The Kilns, is reserved for full-time residents, while the neighbouring Bernicia Way is dominated by second homes and holiday lets.

Residents say this stark divide shows how the crackdown has helped breathe life into the community. Jennifer Hall, 75, whose family has lived in Beadnell for centuries, noted the strict residency conditions at The Kilns.

Jennifer Hall said: “There is a residency condition on the land where each house was built that means they need to be used as permanent residences in perpetuity. Even if a house is demolished, if a new house is built on that land, it would have to be used as a permanent residency.”

However, she noted the contrast with the older estate is clear.

Jennifer Hall added: “Directly behind The Kilns is Bernicia Way, built in 1999 before the neighbourhood plan was made in 2018. It is second homes or holiday lets – there aren’t any permanent residences.”

Eight years ago, Beadnell introduced a rule requiring all homes on new sites to be permanent residences. This followed the 2021 census, which revealed that 61% of the village’s 750 homes were holiday properties. Locals say the restriction has strengthened the community. Chris, 34, moved to Beadnell with partner Olivia Coyle, 30, eight months ago.

Chris said: “There’s certainly more in terms of entertainment, pubs, cafes and that sort of thing compared to how it used to be.”

Olivia Coyle added: “One of the main reasons we wanted to buy here was because we didn’t want to be living next door to empty homes.”

Chris noted the village still quietens down outside peak months – but no longer feels deserted. Beadnell was among the first to act, following St Ives in Cornwall, where residents voted for similar restrictions in 2016. Norfolk coastal communities like Burnham Market followed. Yet, the area remains dominated by holiday properties.

Jennifer Hall said: “In the summer, the place is packed out – you can’t get into a bar or book a table in a restaurant. Every place is crowded.”

But she explained it is quieter in winter.

Jennifer Hall said: “There’s no lights in any of the windows. If you’re the only elderly person living on a particular street, it can be lonely.”

Mrs Hall, whose ancestors arrived in the 1600s, said tourism is part of Beadnell’s history. Her great-grandmother even built the village’s first hotel.

Jennifer Hall said: “It’s still a wonderful place and a lovely community, but it’s different. It was not until the early 2000s that we started having these commercial lets. They were built as investments. They’re also little tourist factories, if you like.”

She added that soaring prices make it hard for young locals to stay.

Jennifer Hall added: “Young people – perhaps working in the tourist industry and not particularly well paid – can’t afford to buy the types of houses that they’re cleaning. They can’t get private lets either, because the owners evict tenants and turn them into holiday lets.”

Others say second-home owners are vital. Val Graham, 62, who runs the village shop, warned that small businesses rely on them.

Val Graham said: “Without second homes and holiday lets, small businesses in Beadnell wouldn’t survive. Most of these second home owners and families support the small local businesses throughout the year, not just during holiday season.”

The debate has intensified since councils gained powers to double council tax on second homes. Christopher Brown, a retired solicitor who moved there permanently after buying a holiday flat in 2000, understands the restrictions.

Christopher Brown said: “I think it’s a fair-minded thing, because it can then begin to build and strengthen the actual community and increase the size of it.”

But he questioned the tax crackdown, as less could be spent locally.

Christopher Brown added: “The double council tax is a bit of a blunt tool to extract money from people. You’re going from paying £2,500 up to £5,000 – that is £2,500 that could be spent in local restaurants and other businesses.”