Rented normally, it costs you £1,001 a month. That is £12,016 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £1,001 a month

It is £1,001 a month short. Borrowing £184,854 less would close that shortfall — which is £184,854 more cash at the start, on top of the deposit.

+£1,042−£1,422−£621−£1,001

Rent inMortgageRunning costsShort by

The rent covers £1,042 of that — you cover £1,001

□ 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

£121,275 + refurb costs

And about £60,078 more over five years, because it loses £1,001 every month you hold it — before any repair. That already assumes the rent never falls.

£121,275 to buy it

deposit · stamp duty · solicitor · fees~£1,350, unseen

□ works not inspected

What would have to be true?The search

No offer makes this pay

Even at £210,000 — well below the £350,000 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 £210,000

What will the rent borrow?Lender test

The rent carries £110,557 of the £262,500 loan

That £151,943 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 £134,254. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,379 needed

more than the £1,002 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,002PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,714 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

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 18 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Rent by the room loses least, at £457 a month

Rent by the room needs £34,000 more cash than the others.

Rent by the room−£457 · £156,625 in

Standard rental−£1,001 · £122,625 in

Housing-benefit rent−£1,280 · £122,625 in

Short-stay let−£1,505 · £122,625 in

3 nearby short-lets within 20 km · low 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) · Guaranteed council rent (no scheme in this borough) · 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

−£72,493 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 £122,625 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£122,625+£387,397−£9,685−£262,500−£65,080−£72,493

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed