A property developer has gone bankrupt after failing to overturn a rule requiring new homes in the affluent seaside town of Salcombe, Devon, to be sold only to full-time residents. Valentine London, the developer, had argued that this primary residence restriction made its £1.2 million luxury apartments unsellable, but its appeal was rejected by the Planning Inspectorate.
Primary Residence Rule and Unsold Flats
The company's attempt to overturn South Hams District Council's 2019 rule, which mandates that new homes in the coastal resort town must be primary residences, proved unsuccessful. Valentine London claimed that this condition rendered its four new-build apartments unsellable, as local buyers could not afford the properties and the restriction prevented those from outside the area from purchasing them as second homes or holiday lets. The flats, built in a development called Brewery Quay, have remained empty for over a year.
Valentine London faced a winding-up petition from HMRC in late 2025 and subsequently entered liquidation. A High Court order in April this year confirmed the company was wound up after becoming insolvent. The director's filings at Companies House revealed the company's insolvency.
Salcombe's Housing Market and the 'Chelsea-on-Sea' Nickname
Salcombe, often dubbed 'Chelsea-on-Sea' due to its popularity among wealthy outsiders, has long grappled with the issue of second homes. Nearly half of its dwellings are owned by non-residents, driving up property prices to an average of £826,000 and pricing out local residents. The town is one of 12 parishes in the South Hams district that have adopted principal residency conditions to promote sustainable communities.
Town councillors and local residents had expressed support for the primary residence rule, viewing it as a precedent for other coastal areas facing similar pressures from second home ownership. Salcombe's mayor, Jasper Evans, had previously stated that the town's housing stock was under pressure from the number of second homes.
The Developer's Appeal and Current Market Status
The apartments, now being marketed by Luscombe Manor on behalf of Strettons Receivers, have seen a significant price reduction. They are listed for £750,000, nearly half a million pounds less than their original asking price. The listing explicitly states that the apartments can only be used as a primary home and not as a holiday home or holiday let. The developer had argued that the condition made the homes unsellable and offered a contribution towards affordable housing as an alternative, but this was rejected.
Valentine London's directors are Andrew and Samantha Manning-Smith. Samantha Manning-Smith has a background in broadcasting and was invited to speak at the Conservative Party Conference by Prime Minister David Cameron in 2009. She was also considered as a candidate for the Conservative Party in London's Richmond Park in 2007.
Planning inspector Oliver Marigold noted in his ruling that the benefits of allowing Valentine London to sell the flats without the primary residence condition would "significantly and demonstrably outweigh the benefits." He also observed that new dwellings granted permission in the South Hams area since the rule's implementation in 2019 had generally sold without issues.
