Rented normally, it costs you £237 a month. That is £2,838 a year, every year you hold it.

Will it pay?Calculator

You top up £237 a month — the mortgage takes 83p of every pound of rent

Borrowing £43,665 less would close that shortfall — which is £43,665 more cash at the start, on top of the deposit.

£1,625 mortgage

£1,969 rent in£237 short

◧ market rent £1,969 · 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

£139,149 + refurb costs

And about £14,191 more over five years, because it loses £237 every month you hold it — before any repair. That already assumes the rent never falls.

£139,149 to buy it

deposit · stamp duty · solicitor · fees~£15,913, unseen

□ works not inspected

What would have to be true?The working

£55,000 off and it stops losing money

At the asking price you feed it £237 a month. At £341,754 the rent covers everything — leaving stamp duty of £24,175 at that price.

offer £341,754

asked £399,995

◧ worked back from the rent■ stamp duty re-bandedrounded down to £5,000 — the rent it works back from is an estimate

Is the price right?Comparables

We can't tell — nothing nearby is alike enough

The dearest sold for 2.1× the cheapest, so the rent has to justify this price on its own.

you'd pay £399,995

£242,883

£300,000

£350,000

£350,000

£365,000

£385,000

£390,000

£410,000

£430,000

£450,000

£457,000

£500,000

£242.9k£371.4k£500k

£242,883 cheapest£500,000 dearest

12 completed sales, same property type, last 3 years

□ 12 sold nearby, not matched on sizeHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries £208,912 of the £299,996 loan

That £91,084 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 £57,658. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,719 needed

more than the £1,893 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,893PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 657 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

No school rated Good or better in this postcode area

1 school in this postcode area, none rated Good or better 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 17 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £237 a month

Let it to the council: £2,304 a year less, but they keep paying when it is empty.

Standard rental−£237 · £155,062 in

Guaranteed council rent−£429 · £155,062 in

Housing-benefit rent−£784 · £155,062 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?The five-year sums

−£28,710 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 £155,062 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