Devonshire Homes enters administration after bespoke project losses

Devonshire Homes Limited, a regional housebuilder operating across South West England, entered administration on 18 June 2026 after losses on a partly completed bespoke housing development and a need for additional funding placed pressure on the business. Sarah Collins and Jonathan Marston of Alvarez & Marsal were appointed joint administrators.

The company’s developments included are The Grange in Bideford and St Michael’s Reach in Penzance. The administrators have not disclosed whether construction will continue, how existing homebuyers will be affected, or whether they intend to seek a sale of the business, individual sites or other assets.

Devonshire Homes reported group turnover of approximately £52 million for the year ended September 30, 2024, during which it sold 128 homes. The group recorded a pre-tax loss of £137,024, reversing a pre-tax profit of more than £1.2 million in the previous financial year. Its loss after tax was £93,021, compared with a £1.3 million profit a year earlier.

Much of the decline was attributed in the accounts to a partly built development comprising bespoke, architect-designed timber-frame homes. The scheme differed from Devonshire Homes’ usual model of constructing standard house types, and the company said it had significantly underestimated the cost of completing the properties.

The project produced a £156,099 loss during the year and required a further provision of approximately £1.12 million, bringing its forecast total loss to about £1.28 million. The company said it would not again acquire sites requiring construction outside its established range of house types.

Profit was also reduced by a £341,902 accounting adjustment relating to the recognition of affordable housing income at The Grange. The company’s auditor identified a material uncertainty over its ability to continue as a going concern, noting that additional funding was needed to support existing and future developments.

Devonshire Homes employed about 77 people at the date of its latest accounts. The administrators have not announced whether employees have been retained or made redundant.