Rented normally, it costs you £433 a month. That is £5,196 a year, every year you hold it.

Will it pay?Calculator

You top up £433 a month — the mortgage takes 98p of every pound of rent

Borrowing £79,934 less would close that shortfall — which is £79,934 more cash at the start, on top of the deposit.

£1,402 mortgage

£1,424 rent in£433 short

◧ market rent £1,424 · 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

£119,075 + refurb costs

And about £25,978 more over five years, because it loses £433 every month you hold it — before any repair. That already assumes the rent never falls.

£119,075 to buy it

deposit · stamp duty · solicitor · fees~£1,350, unseen

□ works not inspected

What would have to be true?The working

£105,000 off and it stops losing money

At the asking price you feed it £433 a month. At £238,400 the rent covers everything — leaving stamp duty of £14,188 at that price.

offer £238,400

asked £345,000

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

What will the rent borrow?Lender test

The rent carries £151,088 of the £258,750 loan

That £107,662 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 gap is £83,488. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,345 needed

more than the £1,369 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,369PRA-style test

Who has to say yes?Council record

Manchester council approves 61% — 56% on a cautious reading

A council-wide rate across 306 HMO decisions, not a forecast for this address.

61%

0%50%100%

never approvesalways approves

the band is the cautious reading of the same 306 decisions — as low as 56%

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

How big is it, really?The plan

The rooms are on the plan; the total is not

The plan is on file; the floor area is not.

□ no floor area published

Is it a good location?Open the map

Manchester, M21

No schools in this postcode area 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

The council here has taken away the automatic right to rent this out by the room

You would have to apply for permission first, and the council can say no.

2 problems found · 1 came back clear · 5 we could not check · 1 does not apply to this property

■ from the Article 4 maplisting last seen 08 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £433 a month

Standard rental also ties up the least cash, £120,425.

Standard rental−£433 · £120,425 in

Rent by the room−£686 · £120,425 in

Housing-benefit rent−£789 · £120,425 in

Each row: money kept a month, then the cash it ties up. Not compared: Do it up, then remortgage (pays back at the remortgage) · Short-stay let (no local short-let data) · Guaranteed council rent (no scheme in this borough) · Buy, improve & sell (pays out on sale)

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

What would you walk away with?The five-year sums

−£34,987 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 £120,425 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

◧ 2.0%/yr growth assumed