Rented normally, it costs you £75 a month. That is £894 a year, every year you hold it.

Will it pay?Calculator

You top up £75 a month — the mortgage takes 68p of every pound of rent

Borrowing £13,761 less would close that shortfall — which is £13,761 more cash at the start, on top of the deposit.

£670 mortgage

£357 running

£991 rent in£75 short

◧ market rent £991 · 45 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

£55,475 + refurb costs

And about £4,472 more over five years, because it loses £75 every month you hold it — before any repair. That already assumes the rent never falls.

£55,475 to buy it

~£15,951

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?The working

£15,000 off and it stops losing money

At the asking price you feed it £75 a month. At £146,647 the rent covers everything — leaving stamp duty of £7,765 at that price.

offer £146,647

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

Is the price right?The deeds

Last sold for £123,000 in 2009

Nothing nearby is comparable, but asking is 34% more than the £123,000 paid for it in 2009.

□ this address’s own deeds, no comparable saleHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries £105,146 of the £123,750 loan

That £18,604 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 £1,781. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,121 needed

more than the £953 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £953PRA-style test

How big is it, really?The plan

Measured off the plan, not by a surveyor 935 sq ft

The area comes off the plan, not a survey. Open for what that means.

□ area off the floorplan — not a survey

Is it a good location?Open the map

Gateshead, NE10 8TN

3 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

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 · 1 came back clear · 5 we could not check · 1 does not apply to this property

■ from council licensing registerlisting last seen 16 Sep 2026

Which strategy wins?The ways to run it

Rent by the room beats Standard rental by £218 a month

Let it to the council: £2,256 a year less, but they keep paying when it is empty.

Rent by the room+£143 · £97,426 in

Standard rental−£75 · £71,426 in

Guaranteed council rent−£263 · £71,426 in

Housing-benefit rent−£393 · £71,426 in

Short-stay let−£554 · £71,426 in

26 nearby short-lets within 11.1 km · low 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?The five-year sums

−£11,240 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 28% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £71,426 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