Update: Development House Limited debts stand at £7,136,519

So it began with the demise of Development House Limited. The person of significant control for the company is David Pownceby, according to Companies House. A month ago the company filed an intention to appoint an administrator.

According to Development House Limited’s Potential Creditors list, more than 230 companies are potentially owed money. We suspect it could be more.

As of the end of June 2023, Development House Limited debts stood at £7,136,519. But may well be higher as the administrators have not yet been appointed. As we understand there was a creditors meeting yesterday 17 August 2023. This was to allow:

The following resolutions will be considered at the shareholders meeting:

1 “That the Company be wound up voluntarily”; and

2 “That Andrew Watling of Quantuma Advisory Limited, Office D, Beresford House, Town Quay, Southampton, SO14 2AQ and Jamie Taylor of Begbies Traynor (Central) LLP, 1066 London Road, Leigh on Sea, Southend, Essex, SS9 3NA (office holder numbers 15910 and 002748) be and are hereby appointed Joint Liquidators for the purpose of such winding up. Any act required or authorised under any enactment to be done by a liquidator may be done by one or both of them.”

David Pownceby (pictured) blames Covid for his woes regarding Development House Limited. He has said:

Due to the negative effects of Covid, the industry wide issues with materials availability and the resultant project delays and the significant increases in material costs followed by the downturn in the housing market in 2022, the lack of sales completions affected the cashflow of Sunningdale which in turn affected the cashflow of the Company which became very restricted throughout 2022.

The business plan of the Company always showed that creditors would be paid as it was anticipated that repayment from Sunningdale would be received once sales had been completed. On this basis, creditors were asked to continue to work to ensure sites could be completed.

Subcontractors who worked on sites, either owned or run by Development House Limited, were hardly ever paid on time. We know this goes back as far as 2019, as two companies have made it known to us, they were not paid at all for work they undertook for Development House. So to blame Covid, doesn’t stack up according to the many unpaid subcontractors, who all say they’ve had difficulty in getting paid on time since 2019. Some of these companies had to use the Construction Adjudication process to get paid, and even when they’d secured  a win via this process, and Development House were forced to put in place payment plans, they still failed to pay promptly, sending several companies into administration.
We know Development House has had serious cash flow issues for a while, as is made clear by Andy Perks, and employee of Development House & Sunningdale House.
But it is not just Development House which has had financial issues. Sunningdale House Developments Ltd has also had cash flow issues, so much so that on the 4 August 2023, they too filed a notice of intention to appoint an administrator.

Six High Court applications for administrative orders have been made by West One Loan Limited which has charges against the companies in relation to loans.

It is understood West One Loan Limited and Aura Finance Limited; which are effectively one and the same have taken  steps to “trigger” the insolvency process.

We know representatives from West One have been visiting sites, across the Folkestone & Hythe District as well as Thanet and Dover District where Sunningdale have sites. They have done this to ascertain valuation of the land and properties which will eventually be disposed of, allowing them to recoup their money.

David Pownceby has been a bankrupt and his former companies Lilybrook Developments DRP Estates and other companies were all dissolved in 2013, owing over £34m to creditors

As we learn more about the demise of Sunningdale House, we’ll do our best to keep you updated. In the meantime, rumours of David Pownceby hiring 4 full time bodyguards 24/7 are doing the rounds. How true these rumours are, we cannot say. So, if you see Mr Pownceby out and about with some bodyguards, please do get a picture, and we’ll publish it.
If you have any information on Development House or Sunningdale House and wish to share it, do contact us at: shepwayvox@riseup.net
We never reveal our sources.
The Shepway Vox Team
Journalism for the People NOT the Powerful
About shepwayvox (1802 Articles)
Our sole motive is to inform the residents of Shepway - and beyond -as to that which is done in their name. email: shepwayvox@riseup.net

2 Comments on Update: Development House Limited debts stand at £7,136,519

  1. They are not bodyguards they are fat landscapers / customers service guys that work for Sunningdale

  2. Having read your articles regarding Sunningdale House Developments I would like to comment as a resident of South Cliff Place, Broadstairs, one of Sunningdale House Developments sites.

    Apart from at least 120 defects to my house, some major and some not so, it has now become obvious why it took so long to have these sorted. I had heard rumours of non-payment of contractors, which explains why it took nearly two years to rectify the defects, and never the same contractor attended.
    Many of the residents experience the same issues.

    There were certain problems that should have come under the jurisdiction of Building Control, and I had a Building Control Officer attend my house to investigate. He dismissed my concerns by saying they never inspect new properties on completion (final) and they trusted the builder to comply!

    South Cliff Place residents have had concerns over the communal areas to the estate.
    The landscaping has never been completed even though this is part of the Planning Conditions.
    A Planning Enforcement Officer attended and on a brief inspection said that she was happy with what has been done, even though probably only of a fraction of the works had been carried out. Planning Conditions were pointed out but ignored!

    Defects to the estate road (which is un-adopted) have never been completed, and these defects were notified to Sunningdale over two years ago.
    The defects include, sunken paving, defective granite rumble strips, clearing of mains drainage and more.

    One of the main issues is the estate boundary running by 7 and 10 South Cliff Drive, adjacent to park by Thanet Bowls Club. The boundary is located in the wrong position.

    When the houses were offered for sale, the boundaries were determined by close boarded fencing. Behind the fencing are several large trees which lean towards the houses. As the trees need attention, I contacted Thanet District Council to have them inspected, which they did. They came back to me with a reply that the trees were in the curtilage of the estate as the site boundary was approximately two metres further back from the established fences. Hence the trees and the strip of land that they are on, do not belong to TDC, but Sunningdale.
    I have been trying to have this resolved for nearly a year, as the trees could fall on the houses, mine included, and also pose a hazard to users of the adjacent park.

    I don’t know if IHBC, who warranty the houses, will take up on this, but I have my doubts.

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