Rented normally, it costs you £199 a month. That is £2,384 a year, every year you hold it.

Will it pay?Calculator

You top up £199 a month — the mortgage takes 82p of every pound of rent

Borrowing £36,671 less would close that shortfall — which is £36,671 more cash at the start, on top of the deposit.

+£1,114−£914−£399−£199

Rent inMortgageRunning costsShort by

The rent covers £1,114 of that — you cover £199

◧ market rent £1,114 · 51 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

£75,150 + refurb costs

And about £11,918 more over five years, because it loses £199 every month you hold it — before any repair. That already assumes the rent never falls.

£75,150 to buy it

deposit · stamp duty · solicitor · fees~£1,500, unseen

□ works not inspected

What would have to be true?The working

£45,000 off and it stops losing money

At the asking price you feed it £199 a month. At £176,089 the rent covers everything — leaving land transaction tax of £8,804 at that price.

offer £176,089

asked £225,000

◧ worked back from the rent■ land transaction tax re-bandedrounded down to £5,000 — the rent it works back from is an estimate

What will the rent borrow?Lender test

The rent carries £118,196 of the £168,750 loan

That £50,554 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 £31,642. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,529 needed

more than the £1,071 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,071PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,302 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

4 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

The area is mapped as high flood risk

Flood maps cover areas, not buildings — treat it as a reason to search, not a verdict.

2 problems found · 2 came back clear · 4 we could not check · 1 does not apply to this property

■ from the flood maplisting last seen 19 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Rent by the room loses least, at £70 a month

Let it to the council: £2,724 a year less, but they keep paying when it is empty.

Rent by the room−£70 · £102,650 in

Standard rental−£199 · £76,650 in

Guaranteed council rent−£426 · £76,650 in

Housing-benefit rent−£621 · £76,650 in

Short-stay let−£662 · £76,650 in

23 nearby short-lets within 20 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

−£15,053 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 23% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £76,650 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£76,650+£249,495−£6,237−£168,750−£12,910−£15,053

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed