Rented normally, it costs you £123 a month. That is £1,476 a year, every year you hold it.

Will it pay?Calculator

You top up £123 a month — the mortgage takes 68p of every pound of rent

Borrowing £22,710 less would close that shortfall — which is £22,710 more cash at the start, on top of the deposit.

+£597−£406−£314−£123

Rent inMortgageRunning costsShort by

The rent covers £597 of that — you cover £123

◧ market rent £597 · 42 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

£34,200 + refurb costs

And about £7,381 more over five years, because it loses £123 every month you hold it — before any repair. That already assumes the rent never falls.

£34,200 to buy it

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

□ works not inspected

What would have to be true?The working

£30,000 off and it stops losing money

At the asking price you feed it £123 a month. At £69,717 the rent covers everything — leaving stamp duty of £3,486 at that price.

offer £69,717

asked £100,000

◧ 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 £63,342 of the £75,000 loan

That £11,658 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 £1,523. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£680 needed

more than the £574 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £574PRA-style test

Is it a good location?Open the map

Durham, DH6 2EG

2 of 3 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 · 2 came back clear · 2 we could not check · 3 do not apply to this property

■ from council licensing registerlisting last seen 19 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £123 a month

Let it to the council: £1,176 a year less, but they keep paying when it is empty.

Standard rental−£123 · £35,550 in

Guaranteed council rent−£221 · £35,550 in

Housing-benefit rent−£312 · £35,550 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 2 bedrooms) · Do it up, then remortgage (pays back at the remortgage) · Short-stay let (no local short-let data) · 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, after 5 years?The five-year sums

−£9,953 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 24% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £35,550 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£35,550+£111,377−£2,784−£75,000−£7,995−£9,953

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed