Rented normally, it costs you £590 a month. That is £7,078 a year, every year you hold it.

Will it pay?Calculator

You top up £590 a month — the mortgage takes 93p of every pound of rent

Borrowing £108,898 less would close that shortfall — which is £108,898 more cash at the start, on top of the deposit.

+£1,635−£1,523−£701−£590

Rent inMortgageRunning costsShort by

The rent covers £1,635 of that — you cover £590

□ 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

Try your own numbersLive

You keep-£590/mo

All-in cash£149,189

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

£130,400 + refurb costs

And about £35,392 more over five years, because it loses £590 every month you hold it — before any repair. That already assumes the rent never falls.

£130,400 to buy it

deposit · stamp duty · solicitor · fees~£18,789, unseen

□ works not inspected

What would have to be true?The working

£145,000 off and it stops losing money

At the asking price you feed it £590 a month. At £229,797 the rent covers everything — leaving stamp duty of £13,586 at that price.

offer £229,797

asked £375,000

◧ 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?Comparables

We can't tell — nothing nearby is alike enough

The dearest sold for 9.7× the cheapest, so the rent has to justify this price on its own.

you'd pay £375,000

£165,000

£220,000

£235,000

£392,000

£440,000

£450,000

£499,950

£800,000

£802,000

£845,000

£900,000

£1,600,000

£165k£882.5k£1.6m

£165,000 cheapest£1,600,000 dearest

12 completed sales, same property type, last 3 years

□ 12 sold nearby, not matched on sizeHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries £173,475 of the £281,250 loan

That £107,775 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 £80,019. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,549 needed

more than the £1,572 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,572PRA-style test

Who has to say yes?Council record

Manchester council approves 61% — 55% on a cautious reading

A council-wide rate across 254 HMO decisions, not a forecast for this address.

61%

0%50%100%

never approvesalways approves

the band is the cautious reading of the same 254 decisions — as low as 55%

■ Article 4 — planning permission requireddecision record held for this authority

How big is it, really?The plan

Room to grow 1,130 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

5 schools in this postcode area, none rated Good or better and flood risk checking… — open for the map, the schools and the rest.

Article 4Planning permission required to let by the room

■ postcode area, not this address

What could kill thisThe checks

The council here has taken away the automatic right to rent this out by the room

You would have to apply for permission first, and the council can say no.

2 problems found · 4 came back clear · 3 we could not check

■ from the Article 4 maplisting last seen 20 Aug 2026

Which strategy wins?The ways to run it

Short-stay let beats Rent by the room by £889 a month

Your controls are set to Standard rental — £1,473 a month behind Short-stay let.

Short-stay let+£883 · £149,189 in

3 nearby short-lets within 5.5 km · low confidence

Rent by the room−£6 · £176,221 in

Guaranteed council rent−£503 · £149,189 in

Standard rental−£590 · £149,189 in

Housing-benefit rent−£910 · £149,189 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, after 5 years?The five-year sums

−£51,951 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 £149,189 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£149,189+£427,514−£10,688−£281,250−£38,339−£51,951

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed