A developer has gone out of business after failing to overturn a rule mandating that new homes in a coastal town must be sold to full-time residents. Valentine London, the developer, had built four luxury apartments in Salcombe, Devon, a town known for its high number of second homes and holiday lets, earning it the nickname 'Chelsea-on-Sea'.
The company appealed a 2019 South Hams District Council rule that new builds must be designated as primary residences. Valentine London argued that this condition made its £1.2 million flats unsellable, as local buyers could not afford them and the restriction limited the potential buyer pool. However, the Planning Inspectorate rejected the appeal last year.
Valentine London subsequently faced a winding-up petition from HMRC in late 2025 and entered liquidation after becoming insolvent. A court order in May of this year confirmed the company was wound up by the High Court a month prior.
Salcombe's primary residence rule was introduced to address concerns about housing stock being dominated by second home owners, which has driven property prices to an average of £826,000, pricing many locals out of the market. The town is one of 12 parishes in the South Hams district that have adopted such residency conditions to foster sustainable communities.
The four apartments, originally priced at £1.2 million, are now back on the market with a reduced price of £750,000. The listing explicitly states they are subject to a primary residence restriction, meaning they can only be occupied as a main home, not as holiday accommodation.
Valentine London's directors, Andrew and Samantha Manning-Smith, had argued that the primary residence condition was not in place when planning permission was granted and that they only became aware of its strict application later. However, planning inspector Oliver Marigold stated in his ruling that new dwellings approved in the South Hams area since the rule's implementation in 2019 had sold without issue. He also noted that the benefits of removing the condition would be outweighed by the drawbacks.
Despite price reductions and incentive offers, the apartments failed to sell for over three and a half years due to the residency restriction. The developer had offered a financial contribution towards affordable housing in lieu of the primary residence condition, but this was not accepted.
Salcombe's mayor, town councillor Jasper Evans, previously expressed that the town's housing stock was under pressure from second homes. The town's nickname, a play on the affluent London area of Chelsea, reflects its status as a desirable location for non-resident property owners, with nearly half of its dwellings reportedly owned by outsiders.