Rented normally, it costs you £956 a month. That is £11,475 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £956 a month

It is £956 a month short. Borrowing £176,541 less would close that shortfall — which is £176,541 more cash at the start, on top of the deposit.

+£2,629−£2,844−£742−£956

Rent inMortgageRunning costsShort by

The rent covers £2,629 of that — you cover £956

◧ market rent £2,629 · 10 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

£249,382 + refurb costs

And about £57,376 more over five years, because it loses £956 every month you hold it — before any repair. That already assumes the rent never falls.

£249,382 to buy it

deposit · stamp duty · solicitor · fees~£9,441, unseen

□ works not inspected

What would have to be true?The working

£235,000 off and it stops losing money

At the asking price you feed it £956 a month. At £464,537 the rent covers everything — leaving stamp duty of £36,454 at that price.

offer £464,537

asked £699,950

◧ 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

Nothing nearby is comparable — but it is 112% over its 2011 price

The dearest sold for 3.7× the cheapest, so the rent has to justify this price on its own.

you'd pay £699,950

£340,000

£565,000

£603,000

£715,000

£730,000

£750,000

£785,000

£795,000

£800,000

£965,000

£1,000,000

£1,250,000

£340k£795k£1.3m

£340,000 cheapest£1,250,000 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 £278,939 of the £524,963 loan

That £246,024 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 £201,393. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£4,757 needed

more than the £2,528 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,528PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 322 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

3 schools in this postcode area, none rated Good or better 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 19 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £956 a month

Let it to the council: £972 a year less, but they keep paying when it is empty.

Standard rental−£956 · £258,823 in

Guaranteed council rent−£1,037 · £258,823 in

Rent by the room−£1,432 · £284,823 in

Housing-benefit rent−£1,554 · £258,823 in

Short-stay let−£2,799 · £258,823 in

6 nearby short-lets within 5.5 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

−£85,851 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 24% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £258,823 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£258,823+£779,577−£19,489−£524,963−£62,153−£85,851

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed