A property developer has collapsed after failing to overturn a ban on second-home sales, leaving it unable to sell four luxury flats in the seaside town dubbed “Chelsea-on-Sea”.
In 2025, the Planning Inspectorate ruled that the newly built apartments in Salcombe, Devon, could be sold only to buyers intending to make them their permanent homes.
Valentine London blamed the restriction for leaving the properties empty for more than a year, arguing that local residents could not afford to buy them.
The flats have now returned to the market at sharply reduced prices, with almost £500,000 cut from the asking price to bring it down to £750,000.
Valentine London had appealed against the “primary residence” condition introduced to tackle the spread of second homes in towns such as Salcombe, where holiday properties have become increasingly prevalent.
The developer argued that the condition rendered its £1.2 million apartments “unsellable”. However, the national planning authority rejected the appeal last year.
The company’s directors described the scheme as a “flagship development”, but said losing the appeal ultimately brought about the firm’s collapse.
Salcombe acquired its nickname as a play on the affluent London district of Chelsea because almost half of the town’s homes are owned by people from outside the area.
The Planning Inspectorate ruled that Valentine London could sell its four new luxury apartments (pictured) in Salcombe, Devon, only to people intending to live there permanently
The developer (pictured, its four luxury apartments) had challenged South Hams District Council’s 2019 rule requiring all new homes in the coastal resort to be used as primary residences
Salcombe (pictured) earned its nickname as a play on the affluent London area of Chelsea, with almost half of its homes owned by people from elsewhere
Many properties are used as second homes or rented out as holiday accommodation.
As a result, average house prices in the town have surged to an eye-watering £826,000, putting home ownership beyond the reach of many local people and forcing some to leave the area.
Valentine London faced an HMRC winding-up petition in late 2025 and entered liquidation after the high-profile planning battle.
A Companies House filing published in May this year later confirmed that the company had been wound up by the High Court a month earlier after becoming insolvent.
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.
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.’
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.
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
‘Designed to provide low carbon and energy usage, the spacious apartments enjoy features such as large balconies, solar panels, private parking and a lift.’
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’.
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.
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.
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.
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’. 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.
‘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.
‘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.’
Valentine London’s directors are listed on Companies House as Andrew and Samantha Manning-Smith, with both appointed in May 2016.
Mr Manning-Smith’s LinkedIn page reads: ‘Currently developing 15,000 sq ft on the water in Salcombe.’
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.
She was asked to speak at the Conservative Party Conference by then-Prime Minister David Cameron in 2009.
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.
He served as Minister for Overseas Territories from September 2022 to June 2023 and is now a life peer.
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.
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’.
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.
Salcombe had become the second most expensive seaside location after Sandbanks.
The Dorset seaside town has long been the playground of celebrities like football manager Harry Redknapp and chef Rick Stein.
Nearly half of all dwellings in the town are already second homes or holiday lets.
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.
Speaking previously, director Andy Manning-Smith refuted claims from Salcombe Town Council that they knew about the restriction when the homes were built.
He said: ‘This was the first primary occupancy restriction in Devon. 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.
The planning inspector said as far as he was aware, new dwellings granted permission in the South Hams area since the rule was implemented in 2019 have sold without any problems. Pictured: Salcombe
‘The point we were aware the restriction was requested to be applied by South Hams Council was on the day of the appeal.
‘We have applied to remove the condition as the apartments are unsalable at a proper price with the condition, which we told the inspector on the original appeal and highly unlikely to be mortgageable.
‘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.’
Mr Manning-Smith also confirmed the primary residency policy does not exclude people from buying the property who are not based in the area as it’s not a local restriction, unlike a Devon covenant, but it would have to be classed as a primary residence.
