Luxury flats in one of the UK’s priciest coastal towns have remained unsold for more than three years due to a rule banning second-home purchases. The four new apartments in Salcombe, Devon, where average house prices have soared to £826,000, can only be sold to full-time residents under a local policy brought in to protect housing stock for locals.
But developer Valentine London says the restriction has made the £1.2million homes impossible to sell. The company claimed that despite dropping prices by 25% and offering incentives, no buyers have come forward since construction was completed.
An appeal to lift the condition was rejected by the Planning Inspectorate this week, The Telegraph reported.
The national body ruled that the homes must remain for primary residence use only, in line with South Hams District Council’s policy introduced in 2019.
Andrew and Samantha Manning-Smith, the couple behind Valentine London, say the rule has left their apartments, which overlook Salcombe harbour, sitting empty.
They argue that buyers are being put off due to fears the restriction will make resale difficult and the properties hard to mortgage.
Mr Manning-Smith previously said the firm had not been told of the restriction at the time of their planning application.
He told The Telegraph: “When we applied for pre-planning and planning the primary occupancy restriction did not exist.
“Despite numerous reductions in price and offers of incentives, the apartments have failed to find a buyer in the last three-and-a-half years due to the condition on this site.”
Salcombe, often nicknamed “Chelsea-on-Sea” for its popularity with wealthy second-home owners, is one of several seaside towns now placing limits on new-build properties being used as holiday homes.
Officials say the aim is to keep communities alive and help young people stay in the area.
Mayor Jasper Evans welcomed the Planning Inspectorate’s decision, saying: “We want young people to stay in the town, work here, be part of the local economy and community. The town’s year-round vitality depends on its permanent residents of all ages.”
He added that while second-home owners had contributed greatly to the area, the number of holiday properties had made it harder for locals to get on the housing ladder.
Valentine London was granted permission to build the Brewery Quay flats and a commercial unit in 2020.
The business space has since been sold to a marine company, but the residential units remain vacant.
Companies House records show that a receiver has now been appointed to take control of the developer’s assets in an effort to recover outstanding debts.
The Express has contacted Andrew and Samantha Manning-Smith for comment.
