'Crisis' in UK's 'poshest' seaside town as nobody can afford to live in new £1.2m homes

A 'posh' artifact of flats built successful a municipality dubbed 'Chelsea-on-Sea' has been near a 'white elephant' - owed to a prohibition 2nd location owners.

The 4 new-build homes successful Salcombe, Devon, person failed to merchantability aft being listed for £1.2M - with claims it is due to the fact that locals can't spend to unrecorded there.

Developer Valentine London is present trying to overturn a 'primary residence' rule' that was brought successful to curb 2nd location owners successful towns specified arsenic Salcombe that person go overrun with vacation homes.

The main residency information applies to each caller physique dwellings including the flats astatine Brewery Quay successful Island Street.

Valentine London has present launched an entreaty aft South Hams District Council rejected its bid to marque an objection to the regularisation - and deemed it 'dangerous' to acceptable a precedent.

The entreaty is owed to beryllium heard by the Planning Inspectorate adjacent month.

Original readying support for the strategy was granted successful 2020 to demolish existing buildings, and physique commercialized units connected the crushed level and 4 residential units above.

The assembly says the developers were alert of the regularisation passim and enactment was completed immoderate clip ago.

Despite this, the flats person not sold - prompting an archetypal bid past twelvemonth to region the condition.

Objecting to the developer's proposal, Salcombe Town Council said: "We person cautiously work the applicant's readying statement.

"Nothing successful immoderate papers submitted persuades america to waver from upholding the main residence Policy SALC H3 which is and has been precise clear; ‘new unrestricted marketplace homes volition not beryllium supported astatine immoderate time’.

"The applicant has astatine each times during the plan and pre exertion process been

aware of this policy.

"Many different parishes are protected by akin policies and immoderate deviation would acceptable a

dangerous precedent successful and beyond Salcombe.

"This argumentation indispensable beryllium vigorously upheld."

In readying documents, the developer argued the outgo of homes successful Salcombe compared to the section mean wage meant the argumentation made the homes astir unsellable.

A spokesperson said: "Construction of the improvement is complete, and the homes person been marketed for immoderate clip without success.

"Feedback from the agents has been that the information has been an obstacle to merchantability and the developer is truthful applying for the removal oregon amendment of the condition.

"In lieu of the superior residence condition, the developer is consenting to connection a publication towards the proviso of formally Affordable Housing which would, of course, beryllium accessible lone to households with a section transportation for concern arsenic their superior residence."

The study besides highlighted what it described arsenic the "specific lodging marketplace dynamics successful Salcombe."

It added: "As we recognize it, the argumentation was motivated by a designation of the effect that 2nd homes person connected the availability of lodging for section radical successful this area.

"The argumentation was truthful intended to guarantee that immoderate caller homes constructed would beryllium disposable to section radical astatine prices that section households could afford.

The papers claimed the marketplace successful South Hams was being driven, "not by moving property households connected section incomes, but by the request for 2nd homes and by an influx of equity-rich incomers from elsewhere."

It said its studies "paints a representation of a municipality divided betwixt a colonisation of plus affluent retirees, in-migrants and vacation makers and a colonisation of moving property locals who progressively cannot spend to unrecorded locally and who are, consequently compelled to determination away."

It said the nonaccomplishment for the properties to merchantability has been "directly attributable to the beingness of the condition, which whitethorn render the properties unmortgageable and thereby efficaciously restrict the properties to those who tin acquisition without a mortgage.

"By depressing the terms and ruling retired those who request a mortgage, it is efficaciously providing a subsidy to those affluent capable not to necessitate immoderate indebtedness to money the purchase," it concluded.

Nearly fractional of each dwellings are already 2nd homes oregon vacation lets.

District councillor Mark Long said: "What we're looking for is to effort and equilibrium things retired truthful that we really person a vibrant, viable community.

"We request radical surviving present afloat time."

He said the developer's fiscal connection for affordable homes was "missing the point".

He said if the developer won, each areas with main residence conditions would beryllium astatine hazard "right crossed the South West and astir the country".

"And truthful I deliberation it's important that we effort and clasp the enactment here," helium added.

Salcombe is 1 of 12 parishes successful the South Hams which person besides adopted main residency conditions "to execute sustainable communities", alongside towns similar St Ives successful Cornwall.

SHDC confirmed that nary main residency conditions successful the country had been breached by developers yet.

Valentine London has been approached for comment.