Rented normally, it costs you £663 a month. That is £7,953 a year, every year you hold it.

Will it pay?Calculator

You top up £663 a month — the mortgage takes 88p of every pound of rent

Borrowing £122,359 less would close that shortfall — which is £122,359 more cash at the start, on top of the deposit.

+£2,738−£2,417−£984−£663

Rent inMortgageRunning costsShort by

The rent covers £2,738 of that — you cover £663

◧ market rent £2,738 · 9 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Try your own numbersLive

You keep-£663/mo

All-in cash£232,928

PaybackNever

Offer−+

Deposit−+

Mortgage rate−+

Rent−+

Worked at 6.50% — 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£211,550 + refurb costs

And about £39,767 more over five years, because it loses £663 every month you hold it — before any repair. That already assumes the rent never falls.

£211,550 to buy it

deposit · stamp duty · solicitor · fees~£21,378, unseen

□ works not inspected

What would have to be true?The working

£160,000 off and it stops losing money

At the asking price you feed it £663 a month. At £431,840 the rent covers everything — leaving stamp duty of £33,184 at that price.

offer £431,840

asked £595,000

◧ 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 £500,000 in 2003

Nothing nearby is comparable, but asking is 19% more than the £500,000 paid for it in 2003.

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

What will the rent borrow?Lender test

The rent carries £290,504 of the £446,250 loan

That £155,746 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 £109,265. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£4,044 needed

more than the £2,633 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,633PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,464 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

2 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 · 2 came back clear · 5 we could not check

■ from council licensing registerlisting last seen 24 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £663 a month

Let it to the council: £18,996 a year less, but they keep paying when it is empty.

Standard rental−£663 · £232,928 in

Rent by the room−£2,219 · £232,928 in

Guaranteed council rent−£2,246 · £232,928 in

Housing-benefit rent−£2,382 · £232,928 in

Each row: money kept a month, then the cash it ties up. Not compared: 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)

◧ 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

−£66,793 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 £232,928 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£232,928+£672,270−£16,807−£446,250−£43,078−£66,793

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed