Rented normally, it costs you £94 a month. That is £1,126 a year, every year you hold it.

Will it pay?Calculator

You top up £94 a month — the mortgage takes 44p of every pound of rent

Borrowing £17,317 less would close that shortfall — which is £17,317 more cash at the start, on top of the deposit.

+£740−£325−£509−£94

Rent inMortgageRunning costsShort by

The rent covers £740 of that — you cover £94

◧ market rent £740 · 16 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Change any of these 16 and every card on this page changes with it. The 6.50% is the 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£28,185 + refurb costs

And about £5,628 more over five years, because it loses £94 every month you hold it — before any repair. That already assumes the rent never falls.

£28,185 to buy it

~£7,255

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?The working

£20,000 off and it stops losing money

At the asking price you feed it £94 a month. At £56,855 the rent covers everything — leaving stamp duty of £2,843 at that price.

offer £56,855

asked £79,950

◧ worked back from the rent■ stamp duty re-bandedrounded down to £5,000 — the rent it works back from is an estimate

Is the price right?The deeds

Last sold for £86,000 in 2017

Nothing nearby is comparable, but asking is 7% less than the £86,000 paid for it in 2017.

□ this address’s own deeds, no comparable saleHM Land Registry Price Paid Data

Can we trust the rent?Rent evidence

Nearby lettings back this rent

We hold too few nearby asking rents to cross-check this figure, so nothing here confirms it a second way.

+6 more

our bar: 10 within 500 m

our own middle half£712–£769/mo

■ 16 lettings within 1 km□ no nearby asks to cross-checkAdvertised rents, not signed tenancies

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 24% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£543 needed

of £712 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £712PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 334 sq ft

Only the agent’s figure exists for this house. Open for what that means.

□ area unchecked — agent’s own

Is it a good location?Open the map

Birmingham City Centre, B16 8BZ

1 of 2 schools in this postcode area rated Good or Outstanding and flood risk checking… — open for the map, the schools and the rest.

Article 4Planning permission required to let by the room

■ postcode area, not this address

What could kill thisThe checks

£1,979 a year in charges for the building, owed even when nobody is living there

The contract the property is sold under sets these charges, and they can go up over the years.

3 problems found · 3 came back clear · 1 we could not check · 2 do not apply to this property

■ from the listinglisting last seen 18 Sep 2026

Which strategy wins?The ways to run it

Guaranteed council rent beats Standard rental by £106 a month

Let it to the council and you keep £106 a month more, and they keep paying when it is empty.

Guaranteed council rent+£12 · £35,440 in

Standard rental−£94 · £35,440 in

Short-stay let−£170 · £35,440 in

22 nearby short-lets within 5.5 km · low confidence

Housing-benefit rent−£178 · £35,440 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 0 bedrooms) · Do it up, then remortgage (pays back at the remortgage) · Buy, improve & sell (pays out on sale)

◧ 4 ways, one measureranked on money kept each month, at the asking price

What would you walk away with, after 5 years?The five-year sums

−£10,358 after five years on the cash you put in, before tax on the sale

Less than the same cash would have made in a savings account, after tax on the interest. The savings account’s capital is not at risk; the property’s is. A fall of about 27% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £35,440 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£35,440+£93,478−£2,337−£59,963−£6,097−£10,358

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed