Rented normally, it costs you £162 a month. That is £1,942 a year, every year you hold it.

Will it pay?Calculator

You top up £162 a month — the mortgage takes 52p of every pound of rent

Borrowing £29,871 less would close that shortfall — which is £29,871 more cash at the start, on top of the deposit.

+£745−£386−£521−£162

Rent inMortgageRunning costsShort by

The rent covers £745 of that — you cover £162

□ 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-£162/mo

All-in cash£43,854

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

£32,925 + refurb costs

And about £9,708 more over five years, because it loses £162 every month you hold it — before any repair. That already assumes the rent never falls.

£32,925 to buy it

~£10,929

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

□ works not inspected

What would have to be true?The search

No offer makes this pay

Even at £57,000 — well below the £95,000 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 £57,000

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 10% 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.

£646 needed

of £716 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £716PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 667 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

Gateshead, NE40 4EP

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 24 Sep 2026

Which strategy wins?The ways to run it

Rent by the room beats Guaranteed council rent by £224 a month

Your controls are set to Standard rental — £232 a month behind Rent by the room.

Rent by the room+£70 · £43,854 in

Guaranteed council rent−£154 · £43,854 in

Standard rental−£162 · £43,854 in

Housing-benefit rent−£284 · £43,854 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

−£15,708 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 £43,854 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£43,854+£112,731−£2,818−£71,250−£10,516−£15,708

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed