Families in seaside town dubbed Chelsea-on-Sea celebrate after developer loses bid to scrap rule new builds should be sold to locals only
Families in a seaside town dubbed Chelsea-on-Sea have celebrated after a developer lost its bid to scrap a new rule that new builds should only be sold to locals.
The Planning Inspectorate ruled this week that Valentine London can only sell its four new luxury apartments in Salcombe, Devon, to people planning to live there full-time.
The developer had appealed South Hams District Council's 2019 rule that any new homes in the coastal resort town must be primary residences.
The firm said this strict condition made its £1.2million flats 'unsellable' - but its pleas were rejected by the national planning body on Monday.
Salcombe earned its nickname, punning on the affluent London area of Chelsea, as almost half its dwellings are owned by outsiders.
They often use their properties as second homes or holiday lets.
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.
So, natives of the picturesque sailing town are overjoyed at this latest decision - which they said sets an important precedent for all coastal areas affected by second home ownership.
Salcombe's mayor, town coucillor Jasper Evans, said: 'Salcombe's housing stock is under pressure from the number of second homes which is absolutely not a criticism of second home owners.
'They have invested massively in the town and we are tremendously appreciative of everything they contribute. To be clear - we welcome everyone who loves Salcombe.
'In Salcombe, the permanent resident population has been in decline. We don't want that to continue.
'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. So, the policy is that if you buy a new house, it has to be your main home.
'That doesn't apply to houses already built.
'This policy is certainly well-supported in Salcombe. It is in our Neighbourhood Plan and it's been introduced in many coastal towns, especially in the south west, who have also been closely watching this appeal.
'It was very important for us and I am sure other communities who adopted the principal residence condition will be equally pleased with this decision.'
The properties are no longer listed for sale and the estate agents said they could not comment on why.
MailOnline has contacted Valentine London for comment but the company appears to have gone into receivership as of May last year.
Its 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.'
Meanwhile, Mrs Manning-Smith's describes her as a 'property owner in Salcombe' with the development 'now concluded and in the sales phase' - and her profile picture bearing the tag 'open to work'.
Their accounts also show them both also currently working as co-founders of Targa Club as of August 2019, a private members' club for car lovers.
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 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.
This was no mean feat, given the Dorset seaside town has long been the playground of celebrities like football manager Harry Redknapp and chef Rick Stein.
Permission for the four flats in Salcombe and a commercial unit at ground level below them - known collectively as the Brewery Quay scheme - was granted in 2020.
The council says the developers were aware of the primary residence restriction throughout.
Developers managed to flog the commercial space to a marine business.
But the white elephant flats have still not sold, despite efforts to variously market them off-plan, after completion and at 25 per cent under market value.
Valentine London has claimed this is because buyers see it as a risky investment, fearing the principal residence rule would make it hard to sell the flats on.
But Mr Marigold did not agree: 'The main reason that the flats are not occupied is because of the marketing strategy, which I have found has not sufficiently explored all potential opportunities.'
He 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.
The inspector added a lower price may yet pull potential buyers in.
He also remarked: 'I do not accept the contention that the planning system entitles developers to expect a reasonable return from development or that the need for a return justifies non-compliance with planning policy.'
Mr Marigold also said not upholding the rule would undermine its function - to 'redress the balance of an unquestionably high proportion of second or holiday homes in Salcombe'.
'Tourism is important to Salcombe, but the level of second homes and holiday lets is harming its vitality', Mr Marigold wrote.
'Policy H3 clearly sets out that new unrestricted market homes will not be supported, to meet the housing needs of local people and to strengthen the community and economy.'
District councillor Mark Long has previously said, after the appeal was submitted: 'We need people living here full time.
'What we're looking for is to try and balance things out so that we actually have a vibrant, viable community.'
If Valentine London won, all areas with principal residence conditions would be at risk 'right across the South West and around the country', he warned.
'And so I think it's important that we try and hold the line here.'
Salcombe Town Council has previously echoed this sentiment: 'Nothing in any document submitted persuades us to waver from upholding the principal residence Policy SALC H3 which is and has been very clear: "New unrestricted market homes will not be supported at any time"...
'Many other parishes are protected by similar policies and any deviation would set a dangerous precedent in and beyond Salcombe. This policy must be vigorously upheld.'
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'.
Such policies have been adopted in other parts of the country too, like the coastal town of St Ives, Cornwall.
A spokesperson for Salcombe Town Council has now commented, after this week's decision: 'This is more than just a planning decision. It's about keeping Salcombe a lived-in town throughout the year...
'We want our streets to stay alive all year round, the school well-used, neighbours sharing a coffee and local shops and services supported by residents who call Salcombe home.
'Other coastal communities which have a substantial visitor economy and many houses not permanently occupied have been closely watching this appeal.
'This decision helps reinforce the shared importance of protecting space for permanent communities in areas under intense second-home demand.'
It added: 'We welcome everyone who loves Salcombe, whether you're here all year, some of the year or just visiting.
'What matters is that we work together to ensure Salcombe stays vibrant, resilient, and inclusive.
'Supporting principal residence new homes is not about exclusion - it's about keeping the heart of Salcombe beating year round and for generations to come.'
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 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 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 unsaleable 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.'
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