Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Devonshire Homes Enters Administration
Devonshire Homes, a regional housebuilder based in Devon, has entered administration. Joint administrators Sarah Collins and Jonathan Marston of Alvarez & Marsal Europe have been appointed to oversee the company's affairs following a notice of intention to appoint administrators earlier this month.
The administration affects two ongoing developments: The Grange in Bideford, a 225-home scheme, and St Michael’s Reach in Penzance, which was due to deliver 320 homes. According to the administrators, the appointment relates solely to Devonshire Homes Ltd and does not impact other Devonshire-branded developments or associated companies.
Devonshire Homes, chaired by former Conservative MP David Heathcoat-Amory, reported a turnover of £52 million in its most recent accounts and employed close to 80 staff during the year to 30 September 2024. The company, founded in the early 1990s, recorded a pre-tax loss of £137,024 for the period.
In its latest accounts, the company disclosed an expected loss of £1.3 million linked to a partly completed development acquired by the firm. Devonshire Homes stated it had significantly underestimated construction costs on a scheme with a high proportion of bespoke timber-frame homes, which it described as outside its core business model. The company also recorded a loss of £156,099 during the year and made a provision of £1.12 million against the anticipated total loss on the project. The firm’s auditors warned of a “material uncertainty related to going concern” in accounts published last October, citing the need for additional funding to support existing and future developments.
Letting agents and inventory clerks with interests in the affected developments may wish to monitor the situation closely as the administration process progresses.
Source: Property Industry Eye