Rented normally, it costs you £244 a month. That is £2,931 a year, every year you hold it.

Will it pay?Calculator

You top up £244 a month — the mortgage takes 71p of every pound of rent

Borrowing £45,096 less would close that shortfall — which is £45,096 more cash at the start, on top of the deposit.

+£1,492−£1,056−£680−£244

Rent inMortgageRunning costsShort by

The rent covers £1,492 of that — you cover £244

□ 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

£88,425 + refurb costs

And about £14,656 more over five years, because it loses £244 every month you hold it — before any repair. That already assumes the rent never falls.

~£119,784

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

£88,425 to buy it

□ works not inspected

What would have to be true?The working

£60,000 off and it stops losing money

At the asking price you feed it £244 a month. At £199,850 the rent covers everything — leaving stamp duty of £11,489 at that price.

offer £199,850

asked £260,000

◧ 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 £158,302 of the £195,000 loan

That £36,698 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 £11,369. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,767 needed

more than the £1,435 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,435PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 575 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

Essex, IG11 0FU

3 of 5 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

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.

2 problems found · 1 came back clear · 4 we could not check · 2 do not apply to this property

■ from council licensing registerlisting last seen 19 Sep 2026

Which strategy wins?The ways to run it

Short-stay let beats Standard rental by £325 a month

Let it to the council: £2,460 a year less, but they keep paying when it is empty.

Short-stay let+£81 · £208,209 in

10 nearby short-lets within 5.5 km · low confidence

Standard rental−£244 · £208,209 in

Guaranteed council rent−£449 · £208,209 in

Housing-benefit rent−£704 · £208,209 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 1 bedroom) · 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

−£55,387 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 41% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £208,209 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£208,209+£373,024−£9,326−£195,000−£15,876−£55,387

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed