The Scottish Property Podcast Why Are Factor Fees So Expensive? Stephen O’Neill Explains
In this episode, Nick and Steven sit down with Stephen O’Neill, founder of Newton Property Management, which now manages around 40,000 properties across Scotland. Stephen shares his fascinating journey from growing up in his family’s estate agency business, to launching and selling his own lettings company, and then scaling Newton into one of Scotland’s leading factoring businesses.
Known for his straight-talking approach, Stephen unpacks the challenges of reputation in the factoring industry, the realities of acquisitions, and the importance of culture in building a generational business. From surviving mistakes in early ventures to instilling a people-first ethos at Newton, this episode is packed with lessons in growth, resilience, and leadership.
🎙️ Episode Highlights:
🏁 Early Lessons in Business
Growing up around his father’s Glasgow estate agency
Watching the family firm lose control after rapid expansion
Key lessons on ownership, shareholding, and capitalisation
💼 From O’Neils to Newton
Founding O’Neils Lettings in 1995 and hustling for growth
Selling the business in 2000 for ~£750k
Why factoring, with its long-term recurring revenue, became his focus
📊 Scaling Newton Property Management
How Newton grew to 40,000 properties and ~85 staff across 4 offices
The “30/30/30” profit model that funded growth and acquisitions
Buying competitors at rising multiples – and why Newton is “not for sale”
🏠 Factoring, Reputation & Regulation
Why factoring has a bad public image and how Newton tackles it
Robust credit control and chasing arrears through debt collection/legal routes
Calls for stricter regulation and annual audits of client accounts
Challenges with under-resourced tribunals
🌍 Culture, Leadership & Vision
Returning from Bali to rebuild service quality after rapid growth
Creating a people-first company culture: loans, therapy, office lunches, stocked fridges
His ambition for Newton to be “the best employer in the country”
📈 Market Views & Next Steps
Why Stephen is bullish on Aberdeen and sees “Park Circus prices” potential
Reflections on being a manager, not a landlord
Balancing growth ambitions with the goal of running a generational business
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