It might be tucked away in Devon with fishing boats, narrow lanes, and a steady drizzle of rain, but Salcombe has, in recent years, felt more like Dubai than a sleepy English seaside.
Once known mainly as a holiday escape, the town has turned into one of the UK’s hottest—and priciest—property markets.
Experts say the boom that unfolded during the Covid years was unlike anything the town had ever experienced, leaving locals and estate agents stunned as homes were snapped up in bidding wars, sometimes sight unseen.
The Pandemic Goldrush
When lockdowns reshaped daily life, thousands fled London and other big cities in search of space, fresh air, and sea views.
Salcombe became a prime target.
Estate agents describe it as a “feeding frenzy” with buyers spending millions, often arriving by helicopter to avoid unwanted attention.
Properties doubled in value in just a couple of years, with one agent recalling sales of £2,000 per square foot—on par with Knightsbridge in London.
For a while, it felt as though Salcombe had turned into the UK’s version of Dubai’s property rush.
The Market Begins to Cool
The tide started to turn in 2023. As offices called workers back to city desks, the shine of coastal working life wore off for some.
Others balked at the extra stamp duty and a new double council tax charge on second homes.
Salcombe also tightened rules, demanding that new builds be sold only as main residences.
Local agents describe what’s happening now not as a crash, but as a “correction.”
The frenzy has eased, homes take longer to sell, and the gap between what sellers want and what buyers are willing to pay has widened.
Prices Still Hold Strong
Despite the slowdown, Salcombe’s appeal hasn’t vanished.
Properties with sweeping sea views or tucked-away privacy continue to command high prices.
One local agent said the market has simply “returned to normal,” with people still prepared to pay a premium for the Devon lifestyle.
Even so, a walk through the town reveals more “For Sale” signs than during the pandemic boom.
In 2022, the average home cost £1.2 million. Some houses that once flew off the market in bidding wars are now waiting longer for the right buyer.
The Rental Boom and Its Aftermath
The holiday rental sector saw a parallel surge. Families unable to travel abroad during Covid packed into Salcombe, with winter bookings as busy as summer.
Businesses thrived, restaurants were booked weeks in advance, and local cruises sold out quickly.
That pace has cooled, but Salcombe remains a go-to holiday destination.
Locals say the seaside charm is still intact, just without the chaos of the Covid years.
Voices from the Town
Shop owners, long-time residents, and business leaders all share the sense that Salcombe hasn’t collapsed—it’s just settled.
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Gift shop owner and cruise operator Tamsin Lafferty-Hall remembers her tours booked out three weeks ahead and laughs about guests leaving bad reviews simply because they couldn’t get a seat. She admits the rush couldn’t last forever but insists Salcombe is still thriving.
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Resident Pam Williams, who has lived there for 17 years, admits things feel quieter, with second-home owners deterred by double council tax. Yet she notes that the summers and holidays remain busy, even if parking is as challenging as ever.
Salcombe’s Reputation Lives On
In 2023 and 2024, Salcombe was crowned the UK’s most expensive seaside town, even overtaking Dorset’s glamorous Sandbanks, though it has since slipped back.
The label “Chelsea-on-Sea” continues to stick, reflecting both its exclusivity and the tension between wealthy incomers and local life.
While the post-Covid “goldrush” is gone, the town is far from fading.
Buyers still want their slice of Devon’s coastal beauty—it just comes at a slower, more considered pace.
What Comes Next for Salcombe
The question now is whether Salcombe will continue to attract millionaire buyers at the same levels or whether the market will settle into a new balance.
For many locals, the quieter pace feels more sustainable, while for investors, the town remains a rare gem in Britain’s property landscape.
One thing is certain: Salcombe may have calmed down, but it hasn’t lost its allure.