Rented normally, it costs you £33 a month. That is £401 a year, every year you hold it.

Will it pay?Calculator

You top up £33 a month — the mortgage takes 53p of every pound of rent

Borrowing £6,162 less would close that shortfall — which is £6,162 more cash at the start, on top of the deposit.

£670 mortgage

£574 running

£1,259 rent in£33 short

£175 of that is a guess — no service charge published.

□ 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

£55,775 + refurb costs

And about £2,003 more over five years, because it loses £33 every month you hold it — before any repair. That already assumes the rent never falls.

£55,775 to buy it

deposit · stamp duty · solicitor · fees~£12,899, unseen

□ works not inspected

What would have to be true?The working

£5,000 off and it stops losing money

At the asking price you feed it £33 a month. At £156,782 the rent covers everything — leaving stamp duty of £8,475 at that price.

offer £156,782

asked £165,000

◧ 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 the whole loan — it could fall 7% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,121 needed

of £1,211 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,211PRA-style test

How big is it, really?The plan

The plan and the advert, side by side 501 sq ft

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

□ area off the floorplan — not a survey

Is it a good location?Open the map

Romford, RM3 8BL

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

■ from council licensing registerlisting last seen 15 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £33 a month

Let it to the council: £1,488 a year less, but they keep paying when it is empty.

Standard rental−£33 · £68,674 in

Guaranteed council rent−£157 · £68,674 in

Housing-benefit rent−£307 · £68,674 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) · 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?The five-year sums

−£7,949 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 £68,674 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

◧ 2.0%/yr growth assumed