Rented normally, it costs you £91 a month. That is £1,094 a year, every year you hold it.

Will it pay?Calculator

You top up £91 a month — the mortgage takes 49p of every pound of rent

Borrowing £16,829 less would close that shortfall — which is £16,829 more cash at the start, on top of the deposit.

+£534−£264−£361−£91

Rent inMortgageRunning costsShort by

The rent covers £534 of that — you cover £91

□ 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-£91/mo

All-in cash£32,857

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

£23,475 + refurb costs

And about £5,470 more over five years, because it loses £91 every month you hold it — before any repair. That already assumes the rent never falls.

£23,475 to buy it

~£9,382

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?The working

£20,000 off and it stops losing money

At the asking price you feed it £91 a month. At £42,555 the rent covers everything — leaving stamp duty of £2,128 at that price.

offer £42,555

asked £65,000

◧ 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?The deeds

Last sold for £74,500 in 2008

Nothing nearby is comparable, but asking is 13% less than the £74,500 paid for it in 2008.

□ this address’s own deeds, no comparable saleHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 14% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£442 needed

of £513 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £513PRA-style test

How big is it, really?The plan

The plan and the advert, side by side 438 sq ft

Two figures for this house, and neither is a survey. Open for both.

AdvertFloorplan

410 sq ft494 sq ft577 sq ft

410 sq ft577 sq ft

neither is a survey — a tape measure settles it

□ area off the floorplan — not a survey

Is it a good location?Open the map

Newcastle, NE10 8JX

3 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 · 3 we could not check · 2 do not apply to this property

■ from council licensing registerlisting last seen 19 Sep 2026

Which strategy wins?The ways to run it

Short-stay let beats Guaranteed council rent by £172 a month

Your controls are set to Standard rental — £199 a month behind Short-stay let.

Short-stay let+£108 · £32,857 in

30 nearby short-lets within 11.1 km · low confidence

Guaranteed council rent−£64 · £32,857 in

Standard rental−£91 · £32,857 in

Housing-benefit rent−£163 · £32,857 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 1 bedroom) · Do it up, then remortgage (pays back at the remortgage) · 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

−£10,996 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 30% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £32,857 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£32,857+£78,498−£1,962−£48,750−£5,925−£10,996

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed