Rented normally, it costs you £281 a month. That is £3,370 a year, every year you hold it.

Will it pay?Calculator

You top up £281 a month — the mortgage takes 70p of every pound of rent

Borrowing £51,850 less would close that shortfall — which is £51,850 more cash at the start, on top of the deposit.

£488 mortgage

£460 running

£693 rent in£281 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

£40,800 + refurb costs

And about £16,851 more over five years, because it loses £281 every month you hold it — before any repair. That already assumes the rent never falls.

£40,800 to buy it

~£11,362

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

□ works not inspected

What would have to be true?The search

No offer makes this pay

Even at £72,000 — well below the £120,000 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 £72,000

Is the price right?Comparables

We can't tell — nothing nearby is alike enough

The dearest sold for 6.2× the cheapest, so the rent has to justify this price on its own.

you'd pay £120,000

£43,000

£55,000

£78,000

£82,500

£86,000

£89,995

£91,000

£95,000

£100,000

£145,000

£162,000

£268,500

£43k£155.8k£268.5k

£43,000 cheapest£268,500 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 £73,528 of the £90,000 loan

That £16,472 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 £4,708. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£816 needed

more than the £666 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £666PRA-style test

Is it a good location?Open the map

South Shields, NE33 4TU

2 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

The property is being sold at auction, so the price shown is a guide, not what it will cost

Every figure on this page is worked from that price, so paying more than it cuts the return.

2 problems found · 5 we could not check · 2 do not apply to this property

■ from the listinglisting last seen 15 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £281 a month

Let it to the council: £504 a year less, but they keep paying when it is empty.

Standard rental−£281 · £52,162 in

Guaranteed council rent−£323 · £52,162 in

Housing-benefit rent−£436 · £52,162 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

−£23,289 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 £52,162 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