Developer goes bust after losing bid to overturn second homes rule in seaside town dubbed Chelsea-on-Sea - as £1.2million flats it built remain empty for more than a year

A developer has gone bust after losing a bid to overturn a ban on second home owners, preventing it from selling 'posh' flats built in a town dubbed 'Chelsea-on-Sea'. asserted

The Planning Inspectorate ruled in 2025 that the four new-build homes in Salcombe, Devon, had to be sold to people planning to live there full-time. asserted

The developer, Valentine London, claimed that this was the reason the flats remained empty for more than a year as it said locals couldn't afford to live there. asserted

They are now back on the market but have been slashed in price by nearly half a million – to just £750,000. asserted

Valentine London had launched an appeal trying to overturn a 'primary residence' rule that was brought in to curb second home owners in towns such as Salcombe that have become overrun with holiday homes. asserted

The firm said this strict condition made its £1.2million flats 'unsellable' – but its pleas were rejected by the national planning body last year. asserted

Its directors said it was a 'flagship development' and the loss of the appeal has proved to be terminal. asserted

Salcombe earned its nickname, punning on the affluent London area of Chelsea, as almost half its dwellings are owned by outsiders. asserted

The Planning Inspectorate ruled that Valentine London could only sell its four new luxury apartments (pictured) in Salcombe, Devon, to people planning to live there full-time The developer (pictured, its four luxury apartments) had appealed South Hams District Council's 2019 rule that any new homes in the coastal resort town must be primary residences uncertain

Salcombe (pictured) earned its nickname, punning on the affluent London area of Chelsea, as almost half its dwellings are owned by outsiders Houses are often used as second homes or holiday lets. asserted

It means property prices in the town have soared to an eye-watering average of £826,000, pricing locals out of the market and forcing many out of the area. asserted

Valentine London faced a winding-up petition from HMRC in late 2025 and entered liquidation following the high-profile planning dispute. asserted

And in a filing on Companies House posted in May this year, it was revealed the company was wound up by the High Court a month earlier after becoming insolvent. uncertain

The court order read: 'It is ordered that Valentine London Ltd be wound up by this court under the provisions of the Insolvency Act 1986 and that the costs of the petitioner of the said petition be paid out of the assets of the company.' The flats are now being advertised to the market by Luscombe Manor on instruction from Strettons Receivers – but for a slashed price of £750,000. asserted

Its listing stated: 'The apartments are subject to a Principal Primary Residence restriction which means they can only be used as a primary home, not a holiday home or holiday let.' asserted

It added: 'Brewery Quay is found in a wonderful waterfront location, just off Island Street, with the apartments having views over Batson Creek to the countryside beyond. asserted

Valentine London's directors are listed on Companies House as Andrew and Samantha Manning-Smith (pictured), with both appointed in May 2016 The firm said the strict primary residence condition made its £1.2million flats (pictured) 'unsellable' - but its pleas were rejected by the national planning body on Monday ' uncertain

Designed to provide low carbon and energy usage, the spacious apartments enjoy features such as large balconies, solar panels, private parking and a lift. asserted

' The main reception area was described as 'very generous, with open-plan kitchen/dining area/sitting areas leading out through bi-fold doors onto the private balconies'. asserted

Natives of the picturesque sailing town in Devon were overjoyed at the decision to ban second home owners – which they said set an important precedent for all coastal areas affected by second home ownership. asserted

Salcombe's mayor, town councillor Jasper Evans, said at the time: 'Salcombe's housing stock is under pressure from the number of second homes which is absolutely not a criticism of second home owners.' Original planning permission for the scheme was granted in 2020 by South Hams District Council to demolish existing buildings, and build commercial units on the ground floor and four residential units above. Salcombe Town Council claimed developers were aware of the restriction throughout – although this claim was disputed by the developers themselves. Despite this, the flats failed to sell – prompting the bid to remove the condition. uncertain

In planning documents, the developer argued the cost of homes in Salcombe compared to the local average wage meant the policy made the homes almost unsellable. asserted

Salcombe is one of 12 parishes in the South Hams district, on Devon's south coast, which have adopted principal residency conditions 'to achieve sustainable communities'. asserted

Pictured: The flats Valentine London co-director Mr Manning-Smith, has previously been quoted as refuting the council's claims developers knew about the restriction when the homes (pictured) were built A spokesman said: 'Construction of the development is complete, and the homes have been marketed for some time without success. ' uncertain

Feedback from the agents has been that the condition has been an obstacle to sale and the developer is therefore applying for the removal or amendment of the condition. asserted

In lieu of the primary residence condition, the developer is willing to offer a contribution towards the provision of formally Affordable Housing which would, of course, be accessible only to households with a local connection for occupation as their primary residence. asserted

Valentine London's directors are listed on Companies House as Andrew and Samantha Manning-Smith, with both appointed in May 2016. uncertain

Mr Manning-Smith's LinkedIn page reads: 'Currently developing 15,000 sq ft on the water in Salcombe.' asserted

Mrs Manning-Smith has regularly featured as a 'panellist on political and current affairs' on Radio 4, Radio 5 and Channel 4 with Anita Anand and Cathy Newman. asserted

She was asked to speak at the Conservative Party Conference by then-Prime Minister David Cameron in 2009. asserted

And she was put forward to stand as a candidate for the party in London's Richmond Park in 2007, missing out to Zac Goldsmith, who was MP from 2010 to 2016 and from 2017 to 2019. asserted

He served as Minister for Overseas Territories from September 2022 to June 2023 and is now a life peer. asserted

Mrs Manning-Smith has also won various business accolades, as a finalist in Business Woman of the Year 2006, invited to Buckingham Palace to meet the late Queen in 2007 as one of the 100 Most Influential Women In Business. asserted

Planning inspector Oliver Marigold said last year that the drawbacks of letting Valentine London sell the flats without the primary residence condition would 'significantly and demonstrably outweigh the benefits'. asserted

South Hams District Council brought in this rule in its 2019 Salcombe Neighbourhood Plan as the town reached breaking point over the second homes issue. asserted

Salcombe had become the second most expensive seaside location after Sandbanks. asserted

Salcombe is one of 12 parishes in the South Hams which have also adopted principal residency conditions 'to achieve sustainable communities', alongside towns like St Ives in Cornwall. asserted

Speaking previously, director Andy Manning-Smith refuted claims from Salcombe Town Council that they knew about the restriction when the homes were built. uncertain

He said: 'This was the first primary occupancy restriction in Devon. asserted

When we applied for preplanning and planning the primary occupancy restriction did not exist, it also did not exist in the statement of common ground agreed with the council a month before the appeal. asserted