The lads started well and forged ahead in the 10th minute through Dominic Ball's penalty after Kenneth McEvoy's cross was handled.
However, Villa hit back and hit us with two quickfire goals on two occasions - 29 and 33 minutes and then 51 and 55 minutes - to lead 4-1 in the second half.
McEvoy pulled a goal back in the 77th minute after good work down the right from Emmanuel Sonupe and Shaq Coulthirst.
Coulthirst struck the woodwork late on as we piled on the pressure.
"It was a strange game because for the first half-hour we were excellent and possibly should have been 3-0 up," reported coach Alex Inglethorpe.
"We went 1-0 up through Dominic Ball's penalty and then missed chances to make it more.
"The lesson the group will learn is that you have to manage the rollercoaster of football when you play. Villa deserved to equalise through a penalty of their own and you could just see us mentally collapse a little.
"We then found ourselves 2-1 down and because we'd played so well, the group were probably feeling a little sorry for themselves and we were soon 4-1 down.
"We rallied after that and at 4-2, I really thought we could get it back to 4-4 because we had the momentum again and regained a bit of belief.
"It was a very open game and if anything, on chances, it could have ended up about 7-7.
"The young players have got to learn not to get too high when they score and not to get too low when they concede - somewhere in the middle is about right."
Spurs U18s: McGee, A McQueen, Gardiner, Ogilvie, Smith (Sonupe, 46), Ball, Onomah, Miller (Lameiras, 58), McEvoy, D McQueen (Akingdayini, 88), Coulthirst. Unused sub: Priestley.