Rented normally, it costs you £454 a month. That is £5,446 a year, every year you hold it.

Will it pay?Calculator

You top up £454 a month — the mortgage takes 96p of every pound of rent

Borrowing £83,789 less would close that shortfall — which is £83,789 more cash at the start, on top of the deposit.

£1,523 mortgage

£1,585 rent in£454 short

◧ market rent £1,585 · 36 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

£130,025 + refurb costs

And about £27,231 more over five years, because it loses £454 every month you hold it — before any repair. That already assumes the rent never falls.

£130,025 to buy it

deposit · stamp duty · solicitor · fees~£15,111, unseen

□ works not inspected

What would have to be true?The working

£110,000 off and it stops losing money

At the asking price you feed it £454 a month. At £263,269 the rent covers everything — leaving stamp duty of £16,327 at that price.

offer £263,269

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

What will the rent borrow?Lender test

The rent carries £168,170 of the £281,250 loan

That £113,080 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 £86,173. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,549 needed

more than the £1,524 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,524PRA-style test

How big is it, really?The plan

The rooms are on the plan; the total is not

The plan is on file; the floor area is not.

□ no floor area published

Is it a good location?Open the map

Luton, LU3 2NT

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 17 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £454 a month

Let it to the council: £1,560 a year less, but they keep paying when it is empty.

Standard rental−£454 · £145,136 in

Guaranteed council rent−£584 · £145,136 in

Rent by the room−£865 · £145,136 in

Housing-benefit rent−£919 · £145,136 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?The five-year sums

−£41,632 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 25% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £145,136 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