Rented normally, it costs you £619 a month. That is £7,425 a year, every year you hold it.

Will it pay?Calculator

You top up £619 a month — the mortgage takes 97p of every pound of rent

Borrowing £114,224 less would close that shortfall — which is £114,224 more cash at the start, on top of the deposit.

+£2,520−£2,438−£701−£619

Rent inMortgageRunning costsShort by

The rent covers £2,520 of that — you cover £619

◧ market rent £2,520 · 12 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

£212,900 + refurb costs

And about £37,123 more over five years, because it loses £619 every month you hold it — before any repair. That already assumes the rent never falls.

£212,900 to buy it

deposit · stamp duty · solicitor · fees~£24,932, unseen

□ works not inspected

What would have to be true?The working

£150,000 off and it stops losing money

At the asking price you feed it £619 a month. At £447,656 the rent covers everything — leaving stamp duty of £34,766 at that price.

offer £447,656

asked £600,000

◧ 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 £267,374 of the £450,000 loan

That £182,626 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 £139,846. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£4,078 needed

more than the £2,423 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,423PRA-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

One figure, and nothing checking it 1,554 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

Manchester, M21 8BX

1 of 1 school 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.

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

■ from council licensing registerlisting last seen 18 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £619 a month

Let it to the council: £7,452 a year less, but they keep paying when it is empty.

Standard rental−£619 · £237,832 in

Rent by the room−£952 · £275,832 in

Short-stay let−£1,198 · £237,832 in

80 nearby short-lets within 5.5 km · low confidence

Guaranteed council rent−£1,240 · £237,832 in

Housing-benefit rent−£1,645 · £237,832 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) · 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

−£64,713 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 25% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £237,832 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£237,832+£680,341−£17,009−£450,000−£40,214−£64,713

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed