Rented normally, it costs you £994 a month. That is £11,927 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £994 a month

It is £994 a month short. Borrowing £183,499 less would close that shortfall — which is £183,499 more cash at the start, on top of the deposit.

+£2,203−£2,539−£658−£994

Rent inMortgageRunning costsShort by

The rent covers £2,203 of that — you cover £994

◧ market rent £2,203 · 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

£222,025 + refurb costs

And about £59,637 more over five years, because it loses £994 every month you hold it — before any repair. That already assumes the rent never falls.

£222,025 to buy it

deposit · stamp duty · solicitor · fees~£24,878, unseen

□ works not inspected

What would have to be true?The working

£240,000 off and it stops losing money

At the asking price you feed it £994 a month. At £380,310 the rent covers everything — leaving stamp duty of £28,031 at that price.

offer £380,310

asked £625,000

◧ 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 £233,740 of the £468,750 loan

That £235,010 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 £197,612. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£4,248 needed

more than the £2,118 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,118PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,121 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

Harrow, HA2 8JG

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 4Not assessed for this address

■ 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 · 4 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 £994 a month

Let it to the council: £4,176 a year less, but they keep paying when it is empty.

Standard rental−£994 · £246,903 in

Rent by the room−£1,109 · £272,903 in

Guaranteed council rent−£1,342 · £246,903 in

Housing-benefit rent−£1,526 · £246,903 in

Short-stay let−£2,542 · £246,903 in

79 nearby short-lets within 11.1 km · medium confidence

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

−£90,049 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 £246,903 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£246,903+£707,904−£17,698−£468,750−£64,603−£90,049

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed