Major British housebuilder collapses into administration with 77 jobs at risk

A South West housebuilder partly owned by former Conservative MP David Heathcoat-Amory has collapsed into administration, putting 77 jobs at risk after efforts to secure a rescue deal failed.

Devonshire Homes Limited has appointed administrators from Alvarez & Marsal Europe LLP to oversee the insolvency process after being unable to find fresh investment or raise sufficient funds through asset sales.

Only Devonshire Homes Limited has entered administration, with other associated businesses and developments within the wider group remaining unaffected.

The company had been attempting to avoid insolvency in recent weeks after filing a Notice of Intention to appoint an administrator, a legal process that provided 10 business days to pursue a rescue plan.

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During that period, the business explored several options, including securing external investment and disposing of assets to improve its financial position.

Those efforts were ultimately unsuccessful, resulting in the formal appointment of administrators.

Company accounts indicate the firm's financial difficulties were largely driven by a residential development it acquired when construction was already partially complete.

The project consisted of bespoke, architect-designed timber-frame homes across two separate locations, marking a significant departure from the company's traditional style of housebuilding.

Accounts filed by parent company London & Devonshire Trust Limited said: "The group had not built such houses before and significantly underestimated the build costs to build the designs."

The company said completing the development proved substantially more expensive than originally anticipated, resulting in an in-year deficit of £156,099 and an expected overall loss of £1.28million.

Its financial position was further affected by an accounting policy adjustment during the same period, which reduced profits by a further £341,902.

The accounts described the losses as "exceptional" and stated that similar acquisitions would not be repeated.

Before entering administration, Devonshire Homes had operated in the South West for more than 30 years.

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The business previously traded as Langworthy Construction before adopting the Devonshire Homes name.

Its developments included traditional countryside properties with thatched roofs, modern apartment blocks and new-build family homes, while the company also carried out restoration work on Grade II listed buildings.

At the time of its collapse, active developments were under way in Ilfracombe, Bideford, Yelland and Bovey Tracey in Devon, alongside projects in Wincanton, Somerset, and Mabe and Penzance in Cornwall.

The company recorded a pre-tax loss of £137,024 for the year to September 2024 on turnover of £52million, having reported profits of more than £1.2million in the previous financial year.

The collapse comes amid continued pressure across the wider construction industry.

Research published earlier this year by Witan Solicitors found that 41.6 per cent of construction companies ceased trading between January 2021 and December 2025, based on Companies House data.

The research found domestic building construction recorded a failure rate of 43.4 per cent over the same period.

Qarrar Somji, solicitor-advocate and director at Witan Solicitors, said: "The construction industry is under sustained and growing pressure, and there are very few signs that things will ease in the short term."

Mr Somji said escalating costs, supply chain pressures, labour shortages and increasingly complex regulations were continuing to place significant strain on businesses across the sector.

He added: "Cash flow remains one of the most critical pressure points, especially for smaller firms," noting that contractors often wait 90 days or longer to receive payment.

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