£10M+ Property Developer: What It Really Feels Like To Owe The Bank Millions | PBK Podcast | EP 148

Summary

James Askew, founder of Aspenol Homes, describes scaling from small property deals to multi-unit new-build developments. His main lessons are to buy at the right price, understand the end buyer, manage costs and cash flow closely, and build a reliable team before expanding.

Business strategy and growth

• James entered development through a local bungalow opportunity around 2018–2019. The site was bought cheaply, and planning was obtained for two units. The project performed better than expected, helped by a strong post-lockdown market; sale prices were reportedly 12–15% above initial expectations.
• After an initial period of trial and error, the business moved from two-unit schemes to larger developments. One completed scheme comprised 11 townhouses on a former car park in Tunbridge Wells.
• James says the company now delivers about 20 units a year, its desired operating scale. Over the next five years, the priority is to sustain that volume safely—not grow at any cost—and reduce the amount of the business that depends directly on him.
• The company generally sells its completed units rather than retaining them. James says reinvesting capital into new sites currently offers a better return for the business.

Development playbook

• Source viable sites: The key is buying at the right price, whether a site already has consent or has potential for planning gain. Keep a broad, opportunistic view rather than relying on one acquisition route.
• Underwrite the whole project: Assess finance, build costs, cash-flow pinch points and likely exit before committing. Model downside scenarios as well as the expected sale outcome.
• Plan beyond consent: Planning approval does not mean work can start immediately. Projects require further design, commercial, legal and operational preparation.
• Secure costs early: Before construction, package and price the work needed to reach watertight stage. Lock in prices where possible and reduce commercial uncertainty from the outset.
• Use market feedback to shape the product: Research local buyers and bring agents and design specialists in early. Be willing to adapt layouts and specification to the local demographic rather than follow personal preference.
• Standardise decisions where possible: Once a specification works, reuse choices such as paint, skirting, doors and bricks across schemes. This reduces repetitive decisions and helps control execution.
• Scale with experience and oversight: Developers learn by making and correcting mistakes. Scaling requires good reporting, hands-on management and the right people; a site manager suited to two units may not be suited to ten.

Product, sales and customer experience

• On the Tunbridge Wells scheme, market research and agent feedback indicated that buyers in the local Asian community preferred a closed kitchen to open-plan living. The project used a separate kitchen with pocket doors; nearly all buyers on that site were Asian.
• The next eight-unit scheme in Brockley has a different target market and design context, so its layouts and specification are being reconsidered. It is described as two-storey, timber-frame homes with flat and green roofs in a conservation area.
• James says the company uses an interior design specialist early and aims to differentiate its product from standard housebuilder specifications. The stated price range for schemes in West Kent, Tunbridge Wells and Sevenoaks is approximately £500,000–£750,000.
• Advanced marketing matters: Start building buyer interest as early as possible rather than waiting until completion. Earlier marketing can expose a scheme to a longer pool of prospective movers. Where a show home is impractical during construction, use good brochures, landscaping plans, specification details and a capable agent.
• Sales should be handled by an engaged, specialist agent. James favours a hungry new-build specialist with accountability over a large brand where responsibility may be less direct. He cites Hilden Management as an agent that has performed well for the company.
• Aftercare is part of marketing: The first residents become the scheme’s informal ambassadors. Respond promptly to issues, set up a dedicated aftercare email, and make clear that buyers will not be forgotten after moving in. Reputation and referrals can be damaged if promises are not fulfilled.
• Manage neighbours and other stakeholders: Contact neighbours early, explain the plans and construction timeline, provide a direct contact number, and keep people informed. Poor communication or a contractor’s behaviour can be blamed on the developer even when the individual is not directly employed by them.

Operations, finance and risk management

• Aspenol operates as a construction-management business rather than using an in-house construction arm. Work is divided into roughly 22 packages, tendered to the market and retendered in a second round. The business has around two to three preferred contractors per package.
• Contractor selection is not based on price alone. Assess capability, understanding of JCT contracts and financial resilience—especially where a contractor may bear liquidated damages or other contractual liabilities.
• Keep a close eye on construction time. James gives an example of a peak debt facility costing £40,000 per month. A three-month delay at that level would add £120,000 in finance costs.
• He reports peak finance costs of six figures per month, or roughly £3,000–£4,000 per day. Personal guarantees can expose a developer’s personal assets if a project fails, so the scale of borrowing must match the developer’s risk tolerance.
• A large 11-unit scheme involved about £5 million of bank borrowing. James says the business previously paid close to 13% for lending and is now accessing rates of around 6.5–7.5%. He estimates that a better facility can improve a scheme’s result by about £200,000.
• Financing becomes easier and potentially cheaper after demonstrating a track record of delivered projects. A strong broker can help establish lender relationships; James credits GDV Finance and broker Harry with helping the company secure repeat business and discussions about revolving credit facilities.
• Cash-flow controls: Break forecasts down by site and use a good quantity surveyor. Reconcile the developer’s QS assessments with the bank’s QS valuations so incoming drawdowns match upcoming obligations.
• Allow a 5–8 day cash-flow buffer for bank drawdowns, which may take several days or be delayed by weekends and bank holidays. Paying suppliers before funds arrive can create a serious liquidity gap.
• Separate the business into appropriate entities. James describes a head company, a construction company handling VAT and CIS, and site-specific SPVs. The construction business needs enough margin to cover its overheads, and projects should overlap sensibly so those overheads are supported by continuing work.
• Create contingency exits: If units cannot be sold, the developer needs to know whether refinancing is viable and whether loan-to-value proceeds would repay the facility. Do not rely on one successful sales outcome, particularly for high-value units.
• Market timing matters even when site selection and delivery are sound. Projects can be affected by a weak sales market, so developers should model delays and alternatives rather than assume every unit will sell on schedule.

Key figures mentioned

Metric Figure First bungalow scheme 2 units Prices achieved on the first scheme 12–15% above expectations Largest named completed project 11 townhouses Borrowing for the 11-unit scheme Around £5 million Three sites mentioned together 26 units in total Current target scale Approximately 20 units per year Next Brockley scheme 8 units Example monthly finance exposure £40,000 Cost of a three-month delay at that rate £120,000 Peak monthly finance cost Six figures, or roughly £3,000–£4,000 per day Lending rates cited Previously close to 13%; now around 6.5–7.5% Cash-flow timing buffer 5–8 days Indicative unit price range in West Kent markets £500,000–£750,000

Presenters and sources

• Guest: James Askew, Aspenol Homes
• Host: PBK Podcast presenter; the host’s name is not stated in the subtitles.
• Sources and advisers mentioned: Hilden Management, GDV Finance and broker Harry, local estate agents, the developer’s and bank’s quantity surveyors, and ChatGPT.