Rented normally, it costs you £155 a month. That is £1,859 a year, every year you hold it.

Will it pay?Calculator

You top up £155 a month — the mortgage takes 59p of every pound of rent

Borrowing £28,598 less would close that shortfall — which is £28,598 more cash at the start, on top of the deposit.

+£961−£569−£547−£155

Rent inMortgageRunning costsShort by

The rent covers £961 of that — you cover £155

◧ market rent £961 · 72 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Try your own numbersLive

You keep-£155/mo

All-in cash£59,037

PaybackNever

Offer−+

Deposit−+

Mortgage rate−+

Rent−+

Worked at 6.50% — 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£47,400 + refurb costs

And about £9,294 more over five years, because it loses £155 every month you hold it — before any repair. That already assumes the rent never falls.

£47,400 to buy it

deposit · stamp duty · solicitor · fees~£11,637, unseen

□ works not inspected

What would have to be true?The working

£35,000 off and it stops losing money

At the asking price you feed it £155 a month. At £101,869 the rent covers everything — leaving stamp duty of £5,093 at that price.

offer £101,869

asked £140,000

◧ 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 £101,963 of the £105,000 loan

That £3,037 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.

£952 needed

more than the £924 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £924PRA-style test

How big is it, really?The plan

The plan and the advert, side by side 688 sq ft

Two figures for this house, and neither is a survey. Open for both.

AdvertFloorplan

678 sq ft705 sq ft731 sq ft

678 sq ft731 sq ft

neither is a survey — a tape measure settles it

□ area off the floorplan — not a survey

Is it a good location?Open the map

Newcastle, NE7 7FX

2 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 4Not assessed for this address

■ postcode area, not this address

What could kill thisThe checks

£2,010 a year in charges for the building, owed even when nobody is living there

The contract the property is sold under sets these charges, and they can go up over the years.

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

■ from the listinglisting last seen 24 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £155 a month

Let it to the council: £3,120 a year less, but they keep paying when it is empty.

Standard rental−£155 · £59,037 in

Guaranteed council rent−£415 · £59,037 in

Housing-benefit rent−£528 · £59,037 in

Short-stay let−£576 · £59,037 in

20 nearby short-lets within 5.5 km · medium confidence

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) · 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

−£15,255 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 27% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £59,037 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£59,037+£162,923−£4,073−£105,000−£10,068−£15,255

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed