Rented normally, it costs you £23 a month. That is £277 a year, every year you hold it.

Will it pay?Calculator

You top up £23 a month — the mortgage takes 61p of every pound of rent

Borrowing £4,255 less would close that shortfall — which is £4,255 more cash at the start, on top of the deposit.

+£1,846−£1,117−£752−£23

Rent inMortgageRunning costsShort by

The rent covers £1,846 of that — you cover £23

□ service charge not published2 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

£93,900 + refurb costs

And about £1,383 more over five years, because it loses £23 every month you hold it — before any repair. That already assumes the rent never falls.

£93,900 to buy it

deposit · stamp duty · solicitor · fees~£2,100, unseen

□ works not inspected

What would have to be true?The working

£5,000 off and it stops losing money

At the asking price you feed it £23 a month. At £269,307 the rent covers everything — leaving stamp duty of £16,931 at that price.

offer £269,307

asked £275,000

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

Can we trust the rent?Rent evidence

Nearby lettings, but only by searching 1.5 km

We widened the search to find them, so these are not next-door comparisons.

+7 more

our bar: 10 within 500 m

what 3 nearby lettings ask£959–£1,850/mo

our own middle half£1,840–£1,852/mo

■ 17 lettings within 1.5 km□ searched wider than our barAdvertised rents, not signed tenancies

What will the rent borrow?Lender test

The rent carries £195,862 of the £206,250 loan

That £10,388 is yours to find on top of the deposit. Tested at 125% instead of 145% — a company or a basic-rate taxpayer usually is — the rent carries the whole loan. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,869 needed

more than the £1,775 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,775PRA-style test

Who has to say yes?Council record

Barking and Dagenham council approves 4% — 1% on a cautious reading

A council-wide rate across 51 HMO decisions, not a forecast for this address.

4%

0%50%100%

never approvesalways approves

the band is the cautious reading of the same 51 decisions — as low as 1%

■ Article 4 — planning permission requireddecision record held for this authority

How big is it, really?The plan

One figure, and nothing checking it 926 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

No school rated Good or better in this postcode area

3 schools in this postcode area, none rated Good or better 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

You would need a licence from the council first

Letting without the council’s licence is an offence, and the fee is in no figure here.

3 problems found · 1 came back clear · 5 we could not check

■ from council licensing registerlisting last seen 18 Sep 2026

Which strategy wins?The ways to run it

Rent by the room beats Guaranteed council rent by £230 a month

Your controls are set to Standard rental — £234 a month behind Rent by the room.

Rent by the room+£211 · £126,000 in

Guaranteed council rent−£19 · £96,000 in

Standard rental−£23 · £96,000 in

Housing-benefit rent−£397 · £96,000 in

Short-stay let−£918 · £96,000 in

3 nearby short-lets within 11.1 km · low confidence

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

◧ 5 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

−£6,247 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 23% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £96,000 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£96,000+£305,129−£7,628−£206,250−£1,498−£6,247

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed