Devonshire Homes Enters Administration After Bespoke Development Losses

Devonshire Homes Limited, a regional housebuilder operating across south west England, entered administration on 18 June 2026.

The company faced mounting financial pressures linked to losses on a partly completed housing development and required additional funding.

Devonshire Homes‘ developments include The Grange in Bideford and St Michael’s Reach in Penzance. The administrators have not said whether construction at either site will continue, how existing homebuyers may be affected, or whether they intend to sell the business, individual developments or other assets.

According to its latest published accounts, Devonshire Homes reported group turnover of approximately £52 million for the year ended 30 September 2024, during which it completed the sale of 128 homes. The group recorded a pre-tax loss of £137,024, compared with a pre-tax profit of more than £1.2 million in the previous year. After tax, it reported a loss of £93,021, reversing a profit of almost £1.3 million in 2023.

Bespoke Development Losses

The accounts attributed much of the deterioration in performance to a partly completed development of bespoke, architect-designed timber-frame homes. The company said the project fell outside its standard business model of constructing conventional house types and that it had significantly underestimated the cost of completing the properties.

The development generated a loss of £156,099 during the financial year, with the company making a further provision of around £1.12 million, taking the project’s forecast total loss to approximately £1.28 million. Devonshire Homes said it would not acquire sites in future that required construction outside its established range of house types.

Results were also affected by a £341,902 accounting adjustment relating to the recognition of affordable housing income at The Grange development.

The company’s auditor highlighted a material uncertainty over Devonshire Homes’ ability to continue as a going concern, stating that additional funding would be required to support both existing and future developments.

Devonshire Homes employed around 77 people at the date of its latest accounts. Sarah Collins and Jonathan Marston of Alvarez & Marsal were appointed joint administrators and have not stated whether employees have been made redundant.

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