By learning from experience, understanding land acquisition, building margin at each stage of the project and critically, by recognizing and acting upon the current market dynamics, architects can carve out a sustainable and potentially lucrative path as developers, says Tom Wimshurst.
Here are five key takeaways from Tom's talk.
Building Margin Throughout the Process:
Tom suggested a strategy of "trying to build margin throughout the process” in order to create a financial buffer. For architects, this means leveraging your design expertise to maximise value at every stage, not just relying on profit at the point of sale.
By charging appropriate fees for architectural work within your own developments, you recognize and value your expertise. As Tom advises, "I think you should just bill for all the time you spend on the project and make sure you are getting all your fees and you're getting your 20%." This ensures that your architectural contribution is not undervalued.
Navigating Land Acquisition
Tom stressed the importance of understanding real land value, noting, "It's only worth what you think you can get out of it... and then reverse back to see what you can pay for the land."
Many landowners may not be aware that "land has gone down a lot... [and] is worth much less now than it was five years ago." Tom advises being cautious and doing your due diligence. He also highlighted an advantage for architect developers: "One of the fortunate things about being an architect practice is we are a bit more trusted than developers." This trust can open doors and create opportunities that might otherwise be missed. "Understand your value, and use that when you negotiate," he advises.
Managing Investor Expectations
A main takeaway is understanding and meeting investor expectations while ensuring you get fair compensation for your time and expertise. Tom learned that a consistent fee structure and a fair profit share, rather than always chasing more, are essential for long-term investor relationships. "I think you should just bill for all the time you spend on the project and make sure you are getting all your fees and you're getting your 20%," he advised.
Learning From Experience:
A recurring theme was learning through trial and error. Tom emphasised, “We’ve had our first decade of learning what to do and what not to do, and now we’re going to accelerate.” Being adaptable and learning from each project is vital. Embrace the challenges, and use them to refine your approach and make you better.
Seizing Opportunity in a Tight Market: Zero Housing Starts in 2025
Tom highlighted a critical point about the current market: "In Q1, 23 London boroughs recorded zero new housing starts." This stark statistic paints a picture of a significant slowdown in construction. Tom sees this not as a deterrent, but as a unique opportunity.
With so few new projects beginning, a "vacuum" is being created. He explains: "That leaves a bit of a vacuum... if you can start now, it's a great time." He further pointed to the fact that “of the 45,000 private homes currently under construction in London, more than 31,000 are set to complete by 2026, only 7,400 completions in 2027 and 2028, of which 45% are already pre-sold.”
By getting projects underway now and navigating the planning process, architect developers can position themselves to deliver new housing just as the market faces a potential shortage. This forward-thinking approach allows you to avoid the intense competition of a booming market and instead enter when demand may be high and supply is low. "It's a great time to go and get things started," Tom advises.
Tom Wimshurst co-founded Wimshurst Pelleriti with his architect brother, Will, and Leo Pelleriti who is also an architect. The 13-strong practice spans architecture, contracting and development. His talk took place at the Society Building on May 13th, 2025.
