Devonshire Homes Limited, a housebuilding firm with development sites across Devon and Somerset, is reportedly seeking a lifeline after filing a Notice of Intention to appoint an administrator. This formal step gives the company a 10-business-day grace period to arrange a rescue plan, which may involve securing new investment or selling assets to raise funds.
The notice temporarily halts creditor payments, providing Devonshire Homes critical breathing room to explore solutions to its financial difficulties. The firm, with sites in Ilfracombe, Bideford, Yelland, Bovey Tracey, Wincanton, Mabe, and Penzance, recently reported losses after enjoying over £1.2 million in pre-tax profits the previous year.
A significant factor behind the downturn was a costly deviation from Devonshire’s core building strategy. The company acquired a partially constructed development featuring high-end, timber-framed, architect-designed bespoke homes—types it had never built before. According to the accounts of its parent company, London & Devonshire Trust Limited, the firm substantially underestimated the construction costs, leading to notable financial losses on this project.
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The accounts describe this mistake as a one-off exception, confirming that the company does not intend to pursue such developments in the future. Over £1.2 million of the loss was categorized as an exceptional item tied to this project.
Further complicating the financial picture, Devonshire Homes disclosed reliance on a covenant waiver from Lloyds Bank expected in December 2025, to avoid breaching loan conditions. The outcome of this waiver remains unclear as the accounts were filed prior to that date. The waiver, if granted, is conditional upon the bank’s satisfaction with the company’s efforts to restructure the business and achieve a satisfactory trading performance.
Notably, David Heathcoat-Amory, former Conservative MP for Wells, Somerset, is listed as a non-executive director on Devonshire Homes’ website. However, he was named chairman in the latest published accounts.
The Notice of Intent to appoint administrators was submitted on 17 June 2026, and although the case is active, details remain scarce. Devonshire Homes has been approached for comment but had yet to respond as of publication.