Luxury Flats in Salcombe Remain Unsold Due to Second-Home Purchase Ban

The luxury apartment market in Salcombe, one of the UK's most expensive coastal towns, is facing significant challenges due to a local law that prohibits the sale of properties to second-home buyers. This regulation, introduced to maintain housing availability for local residents, has rendered four newly built flats worth £1.2 million unsellable. The developer, Valentine London, has reported that despite reducing the asking price by 25% and providing various incentives, they have not attracted any buyers since the buildings were completed over three years ago.

Earlier this week, the Planning Inspectorate upheld the decision to keep these homes reserved solely for primary residents, aligning with policies set by South Hams District Council in 2019. Andrew and Samantha Manning-Smith, the developers, expressed frustration that their properties, which boast views of Salcombe harbour, have remained vacant due to a perception among prospective buyers that the resale would be challenging and that securing mortgages could be complicated. Mr. Manning-Smith noted that during the initial planning stages, they were not informed about the primary occupancy restriction.

He highlighted the difficulties they have faced in selling the apartments over the past three and a half years as a result of this ruling. Salcombe, often referred to as "Chelsea-on-Sea" due to its allure for affluent second-homeowners, is among several coastal towns implementing similar restrictions to prioritize local community sustainability and support for younger residents. Mayor Jasper Evans endorsed the Planning Inspectorate's ruling, emphasizing the importance of permanent residents to the town's economic and community vibrancy throughout the year.