Rented normally, you'd make about £93 a month.

Will it pay?Calculator

£93 of every £1,890 is yours to keep, each month

You keep 5p of every pound of rent. The mortgage takes 64p.

+£1,890−£1,219−£557−£22£93

Rent inMortgageRunning costsTaxProfit

Rent £1,890, modelled from 23 nearby lettings

◧ market rent £1,890 · 23 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

£102,650 + refurb costs

£27,650 of that never comes back — stamp duty, solicitor and lender fees.

£102,650 to buy it

deposit · stamp duty · solicitor · fees~£17,570, unseen

□ works not inspected

What would have to be true?

Nothing — it works at the asking price

The rent covers the mortgage, the running costs and the tax at the £300,000 asked, so there is no discount this card has to name. A lower price would be upside, not a condition.

◧ worked back from the rent

What will the rent borrow?Lender test

The rent carries £200,531 of the £225,000 loan

That £24,469 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 rent carries the whole loan. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,039 needed

more than the £1,817 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,817PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 1,248 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

Luton, LU3 3TX

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

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 · 4 we could not check · 1 does not apply to this property

■ from council licensing registerlisting last seen 20 Aug 2026

Which strategy wins?The ways to run it

Rent by the room beats Standard rental by £49 a month

Let it to the council: £1,164 a year less, but they keep paying when it is empty.

Rent by the room+£142 · £152,704 in

Standard rental+£93 · £120,220 in

Guaranteed council rent−£4 · £120,220 in

Housing-benefit rent−£409 · £120,220 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

−£3,961 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 26% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £120,220 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£120,220+£343,833−£8,596−£225,000+£6,021−£3,961

Cash you put inSale valueSelling costsMortgageRent keptYou are down

◧ 2.0%/yr growth assumed