Here are the locations of the Gnomes. You need to find 7 in different Named Locations to complete the challenge:
You’ll need to break the wooden pillar to see the Gnome properly.
This Gnome is hiding under the stairs behind boxes at the very bottom of the house.
There are several other locations where the gnomes can be found, these are just the first 7 we found.
UPDATE: Here are 10 Gnome Locations:
You will hear this sound when a Gnome is close. You will need to look properly as they are well hidden: