Luxury Flats in South West’s ‘Chelsea-on-Sea’ Face Uncertain Future

In the picturesque town of Salcombe, a set of four new-build luxury flats are caught in a troubling predicament. Initially priced at a staggering £1.2 million, these homes have yet to find a buyer, an issue underscored by the local community’s inability to afford such lavish accommodations.

The Housing Dilemma

Developer Valentine London is currently grappling with a significant hurdle: a contentious ‘primary residence’ rule that aims to limit second home ownership in this desirable area. These restrictions, put in place to protect the housing market for local residents, have left the Brewery Quay flats on Island Street languishing on the market.

Valentine London has decided to appeal against South Hams District Council’s refusal to exempt these properties from the primary residence condition. The council argues that allowing such exceptions could set a dangerous precedent, potentially undermining the intent behind the policy, which was designed to ensure that housing remains accessible for the community.

Stylish living in Salcombe amidst local regulations.

Council’s Firm Stance

The original planning permission, granted back in 2020, involved the demolition of existing structures to pave the way for commercial units at ground level and residential units on the upper floors. Despite the project’s completion, the council maintains that the developers were fully aware of the stipulations regarding primary residency.

In a statement, Salcombe Town Council expressed its strong opposition to any amendment of this policy: > “We have carefully read the applicant’s planning statement. 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.’” This steadfast resolution reflects a broader sentiment within the community, as numerous parishes adopt similar policies to prevent the saturation of holiday homes at the expense of local residents.

Market Dynamics at Play

Developers, however, argue that the current local housing policies are not meeting the realities of the Salcombe market. The barrier to potential buyers, they say, stems from the staggering difference between property prices and local average wages, rendering the flats’s sales nearly impossible. A spokesperson for the developer noted, “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.”

In response to the community’s needs, the developer proposes to contribute towards formally Affordable Housing that prioritizes accessibility for locals. They assert that the policy’s intent—to mitigate the impact of second homes on local housing availability—requires reevaluation.

Community meetings discuss housing solutions in Salcombe.

Striving for Balance

District councillor Mark Long articulated the necessity of striking a balance between attracting investment and preserving community integrity. He emphasized, “What we’re looking for is to try and balance things out so that we actually have a vibrant, viable community. We need people living here full time.”

Salcombe is part of a wider trend across the South Hams region, where principal residency conditions have been adopted in an effort to foster sustainable communities. Similar policies in towns like St Ives, Cornwall, reflect a growing recognition of the complex challenges posed by holiday home proliferation.

The forthcoming appeal hearing in front of the Planning Inspectorate next month will be critical in determining the fate of the Brewery Quay flats and could have broader implications for housing policies across the South West.

The Road Ahead

As the housing market faces these multifaceted challenges, Salcombe stands as a vivid example of the tensions between real estate development and community needs. With the council united in its mission to protect local residents, and developers pushing for flexibility, the outcome of this situation is keenly awaited by many stakeholders.

For those invested in the future of Salcombe and other affected areas, the stakes couldn’t be higher; preserving local character while accommodating necessary development will require innovative solutions and collaborative dialogues between all parties involved.