Rented normally, it costs you £1,527 a month. That is £18,318 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £1,527 a month

It is £1,527 a month short. Borrowing £281,819 less would close that shortfall — which is £281,819 more cash at the start, on top of the deposit.

£4,063 mortgage

£3,442 rent in£1,527 short

◧ market rent £3,442 · 6 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

£363,450 + refurb costs

And about £91,591 more over five years, because it loses £1,527 every month you hold it — before any repair. That already assumes the rent never falls.

£363,450 to buy it

deposit · stamp duty · solicitor · fees~£114,516, unseen

□ works not inspected

What would have to be true?The working

£375,000 off and it stops losing money

At the asking price you feed it £1,527 a month. At £624,219 the rent covers everything — leaving stamp duty of £52,422 at that price.

offer £624,219

asked £1,000,000

◧ worked back from the rent■ stamp duty 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 £365,199 of the £750,000 loan

That £384,801 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 £326,369. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£6,797 needed

more than the £3,310 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £3,310PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,844 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

Essex, RM11 3AU

1 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

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 15 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £1,527 a month

Let it to the council: £13,956 a year less, but they keep paying when it is empty.

Standard rental−£1,527 · £477,966 in

Rent by the room−£1,728 · £523,966 in

Guaranteed council rent−£2,690 · £477,966 in

Short-stay let−£2,962 · £477,966 in

10 nearby short-lets within 20 km · low confidence

Housing-benefit rent−£2,964 · £477,966 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) · 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?The five-year sums

−£170,576 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 £477,966 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