Rented normally, it costs you £487 a month. That is £5,846 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £487 a month

It is £487 a month short. Borrowing £89,943 less would close that shortfall — which is £89,943 more cash at the start, on top of the deposit.

+£689−£812−£364−£487

Rent inMortgageRunning costsShort by

The rent covers £689 of that — you cover £487

◧ market rent £689 · 130 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

£67,184 + refurb costs

And about £29,231 more over five years, because it loses £487 every month you hold it — before any repair. That already assumes the rent never falls.

£67,184 to buy it

deposit · stamp duty · solicitor · fees~£11,112, unseen

□ works not inspected

What would have to be true?The search

No offer makes this pay

Even at £119,970 — well below the £199,950 asked — the rent still does not cover the costs. The gap is the rent against the running costs, not the price, so negotiating does not close it.

◧ worked back from the rent■ stamp duty re-bandedtested down to £119,970

Is the price right?The deeds

Last sold for £180,000 in 2024

Nothing nearby is comparable, but asking is 11% more than the £180,000 paid for it in 2024.

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

What will the rent borrow?Lender test

The rent carries £73,103 of the £149,963 loan

That £76,859 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 £65,163. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,359 needed

more than the £663 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £663PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 728 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

Durham, DH2 1XH

1 of 4 schools in this postcode area rated Good or Outstanding 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 · 1 came back clear · 3 we could not check · 3 do not apply to this property

■ from council licensing registerlisting last seen 22 Aug 2026

Which strategy wins?The ways to run it

Short-stay let beats Standard rental by £611 a month

Let it to the council: £2,076 a year less, but they keep paying when it is empty.

Short-stay let+£124 · £78,296 in

3 nearby short-lets within 11.1 km · low confidence

Standard rental−£487 · £78,296 in

Guaranteed council rent−£660 · £78,296 in

Housing-benefit rent−£749 · £78,296 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) · 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

−£36,906 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 26% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £78,296 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£78,296+£228,736−£5,718−£149,963−£31,665−£36,906

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed