A property developer has collapsed into insolvency after failing to overturn a planning rule that bars it from selling luxury flats to anyone other than full-time residents, in Salcombe, Devon – a town nicknamed "Chelsea-on-Sea" due to its high proportion of second homes. Valentine London had appealed against a "primary residence" restriction imposed by South Hams District Council, arguing the condition made its £1.2million apartments effectively unsellable, but the Planning Inspectorate rejected the challenge in 2025. The case highlights the tension between local authorities trying to curb second-home ownership in desirable coastal areas and developers who say such rules can leave new housing stock unmarketable.

The four flats, part of the Brewery Quay development overlooking Batson Creek, sat empty for more than a year before the company faced a winding-up petition from HMRC and was ultimately liquidated by the High Court after becoming insolvent. Company filings show directors Andrew and Samantha Manning-Smith had described the scheme as a "flagship development". The apartments are now back on the market through Luscombe Manor, instructed by Strettons Receivers, with the asking price cut by nearly half a million pounds to £750,000. Local residents, including town mayor Jasper Evans, had welcomed the primary-residence rule, noting that second-home ownership has pushed Salcombe's average house price to around £826,000, pricing out many local buyers.