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Year 5 disposal
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0/ 100
Weak
5.72% Rent by the room return before costs — verify the rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£668/mo — heavily negative — needs monthly capital injection
- -5.7% 5y IRR — capital outlay disproportionate to returns
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
- EPC band not stated — verify the certificate before offering (2030 MEES minimum is band C).
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£668/mo
You top up £668/mo
Price
£400K
No local sold comps to compare
Return · IRR
-5.7%/yr
Loses money over 5 years
Cash to get in
£154K
Deposit + fees + refurb
Return before costs on price · Rent by the room 5.72%5-yr return on cash -21%Rent est. £1,449 (£1,343–£1,563)
How we define each return: On price — gross yield = annual rent ÷ purchase price. On cost — net yield ÷ total project cost (price + refurb + fees). On cash — cash-on-cash & ROI ÷ the actual cash you put in (deposit + costs).
What-if calculator
Rates as of 20 May 2026Buy-to-Let. Standard rental on an Assured Shorthold Tenancy. Single household, market rent, paid monthly direct to landlord (or via agent). (hover any strategy tab for pros + cons)
Offer (£)
Monthly rent (£)
Local comp range: £1,343–£1,563/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £100,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
Mortgage term (years)
Stress rate6.5%
BoE base + 2pp stress (6.5%)
Acquisition costs
Refurb (£)
Per-property refurb estimate from the element rate-card model (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £300,000 loan + £1,000 booking fee
Running costs
Management10%
Typical BTL agency rate
Void weeks
Typical voids for BTL
Insurance (£/mo)
Typical BTL building+landlord cover for £400K+
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£668
after mortgage, operating costs & tax
Rent in£1,449/mo gross
£1,393/mo collected · £56/mo lost to voids
Where it goes
£1,625Mortgage£436Costs
Outgoings exceed rent — you top up £668/mo
Mortgage£1,625
Costs£436
Management£145
Maintenance£67
Insurance£40
CapEx reserve£72
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£668
Returns
Return before costs on price4.35%
Cash return on cash-5.19%
Gross margin£957
Cash needed£154,261
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.86
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Year-by-year Monthly profit (5-yr horizon)
Net Monthly profit after tax. Rent + costs compound at their growth rates; mortgage principal amortises year-by-year for repayment loans.
Mortgage paydownRent profitbefore price growth
Full year-by-year breakdown
| Year | Gross Rent | Op Costs | Mortgage | Equity Built | Tax | Net | Cumulative |
|---|---|---|---|---|---|---|---|
| Year 1 | £17,388 | £5,230 | £19,500 | £0 | £0 | -£7,342 | -£7,342 |
| Year 2 | £17,910 | £5,387 | £19,500 | £0 | £0 | -£6,977 | -£14,319 |
| Year 3 | £18,447 | £5,548 | £19,500 | £0 | £0 | -£6,601 | -£20,920 |
| Year 4 | £19,000 | £5,715 | £19,500 | £0 | £0 | -£6,214 | -£27,134 |
| Year 5 | £19,570 | £5,886 | £19,500 | £0 | £0 | -£5,816 | -£32,950 |
Disposal gain (gross)-£16,669
CGT£0
Net Disposal proceeds£430,592
What we verified
What we verified
50075 ok · 0 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Conversion approvability
Per-property planning assessment
Likely approvable71% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
- this council refuses HMOs that would sandwich a family home between two HMOs — check both adjoining properties
- NO HMO concentration data for this council: neither a licensed register nor granted change-of-use decisions nearby. This is ABSENCE OF DATA, not absence of HMOs — verify with the council before relying on it
Rent by the room concentration nearby
≈0.0% within 40 m vs 10% policy
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
Rates as of May 2026
Building condition
Energy ratingUnknown
EPC& 2030 deadlineEPC register
EPC band not available in the listing. The 2030 MEES minimum is band C — verify the certificate before offering.
EPC band from listing · verify certificate before exchanging
Find EPC certificate →Cladding safety certificateNot stated on the listing
HeritageNot stated on the listing
Heritage& planning constraintsNHLE register
We don't ingest the NHLE bulk register, so we can't flag listed-building or conservation-area status for this address from our data alone. Use the official registry to verify before exchanging.
Area
Flood riskChecking…
FloodriskEA
Crime riskChecking…
Crimeriskpolice.uk
SchoolsChecking…
Schools& Ofsted catchmentGIAS register
No schools indexed for this postcode sector.
Investor
Tenant profileStudent let
Tenant profilelikely cohortSO16 · 3 bed
Primary profile
Student let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Southampton · 0.9 km
Reason
0.9 km from a major UK university with 3 beds — strong HMO/student let demand.
Heuristic from postcode + bedrooms + nearest-university distance · verify locally
Refurb costEstimate ready
Refurb cost& works budgetQ1 2026 rates
New kitchen + bathroom + light replumb + decor.
Total estimate
3-bed · 2-bath · 990 sqft
£28k–£56k
£ per sqft
building cost only
£29–£56
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£6,930–£12,870
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,890–£20,790
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Check council
The council's HMO page lists the current mandatory fee plus any additional / selective scheme that catches smaller HMOs.
Mandatory licensing applies to 5+ sharer HMOs (Housing Act 2004)
Find council HMO page →Price & sale history26d on marketno cuts yet
Strategy matrix
Rent it out wins — -£668/mo · level with Refurb & refinance
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| ⭐ Rent it out | 4.35% | -£668 | £154,261 | -21.4% | Low | Feasible |
| Housing-benefit rent | 3.22% | -£1,043 | £154,261 | -35.8% | Med | Feasible |
| Council lease | 0.00% | -£1,836 | £154,261 | -71.9% | Low | Feasible |
| Refurb & refinance | 4.35% | -£668 | £180,305 | -18.3% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£211 | £453,305 | 5% | Med | Feasible |
| Rent by the room | 5.72% | -£1,745 | £180,261 | -53.0% | — | Feasible |
Ready to move on this deal?
Generates an offer pack with your numbers & sources — take it to the agent.
Pro analysis — outcome range, stress tests & portfolio impact
Local lettings demanddays-to-let · supply now · trend
Rent by the room conversion upside
+£40/mo cash flow vs Rent it out if converted to Rent by the room
7.20% Return before costs on price converted vs 4.35% as-is
Room mix (3 lettable rooms)
1× Double @ £653/mo1× Single @ £523/mo1× En-suite @ £732/mo
≈ £1,908/mo gross room income
As-is Rent it out
Monthly profit-£589
Return before costs on price4.35%
Cash needed£111,898
If converted to Rent by the room
Monthly profit-£550
Return before costs on price7.20%
Cash needed£127,898
Δ vs Rent it out Monthly profit+£40
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Likely approvable · 71% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
≈0.0% within 40 m vs 10% policy
£54,690–£102,530full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£6,930–£12,870
- Flooring£10,890–£20,790
Based on 3362 HMO comps within 1.1 km
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score90 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Southampton City-wide HMO Article 4
≈0.0% within 40 m vs 10% policy
Tax treatment
Annual gross rent£17,388
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£8,010
Exit costs
Projected sale price (5y · 2%/yr growth)£441,632
Capital gain (pre-CGT)£41,632
Sale costs (~2.5%)£11,041
CGT due (Ltd Co 25%)£0
No personal CGT — the gain is taxed at the company level (corporation tax) when the SPV disposes of the property.
Net 5y Monthly profit after CGT-£32,950
Rates as of Oct 2024
Acquisition costs
£154,261cash neededPurchase price£400,000
Deposit (25%)£100,000
Stamp duty+5% additional-property surcharge£30,000
Refurb£15,111
Legal + survey£2,150
Mortgage fees£7,000
Total cash neededdeposit + costs (loan covers the rest)£154,261
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
Located in the heart of Bassett and occupying a generous corner plot, this superb three-bedroom detached family home is offered for sale with no forward chain.
The accommodation comprises a welcoming entrance hallway, spacious lounge, dining room, kitchen, sunroom and shower room, together with ample storage throughout. Upstairs, there are three well-proportioned bedrooms, a family bathroom and separate WC.
Externally, the property benefits from attractive front and rear ga…
Floor plans
Listing metaonthemarket · Hunters - Southampton
About this listing
26 days · OnTheMarketPrice history
5-year price trend
Monthly profit
−£668
Cash needed
£154K
Return after costs
-5.19%
IRR
-5.74%
Listed 26d ago
The Parkway, Southampton, SO16, Southampton, SO16
house · 3 bed · 2 bath
£400,000
est £1,449 · 4.35% gross
1 / 5
0/100
Marginal
5.72% — verify the rent + comps locally.
4.35% Return before costs — around the area average for this property type.
Monthly profit −£668/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£400K
Return before costs (best)
5.72%
Rent by the room
Bedrooms
3
2 bath
Energy rating
—
Energy rating
Run the numbers
What-if calculator
Rates as of 20 May 2026Buy-to-Let. Standard rental on an Assured Shorthold Tenancy. Single household, market rent, paid monthly direct to landlord (or via agent). (hover any strategy tab for pros + cons)
Offer (£)
Monthly rent (£)
Local comp range: £1,343–£1,563/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £100,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
Mortgage term (years)
Stress rate6.5%
BoE base + 2pp stress (6.5%)
Acquisition costs
Refurb (£)
Per-property refurb estimate from the element rate-card model (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £300,000 loan + £1,000 booking fee
Running costs
Management10%
Typical BTL agency rate
Void weeks
Typical voids for BTL
Insurance (£/mo)
Typical BTL building+landlord cover for £400K+
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£668
after mortgage, operating costs & tax
Rent in£1,449/mo gross
£1,393/mo collected · £56/mo lost to voids
Where it goes
£1,625Mortgage£436Costs
Outgoings exceed rent — you top up £668/mo
Mortgage£1,625
Costs£436
Management£145
Maintenance£67
Insurance£40
CapEx reserve£72
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£668
Returns
Return before costs on price4.35%
Cash return on cash-5.19%
Gross margin£957
Cash needed£154,261
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.86
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Year-by-year Monthly profit (5-yr horizon)
Net Monthly profit after tax. Rent + costs compound at their growth rates; mortgage principal amortises year-by-year for repayment loans.
Mortgage paydownRent profitbefore price growth
Full year-by-year breakdown
| Year | Gross Rent | Op Costs | Mortgage | Equity Built | Tax | Net | Cumulative |
|---|---|---|---|---|---|---|---|
| Year 1 | £17,388 | £5,230 | £19,500 | £0 | £0 | -£7,342 | -£7,342 |
| Year 2 | £17,910 | £5,387 | £19,500 | £0 | £0 | -£6,977 | -£14,319 |
| Year 3 | £18,447 | £5,548 | £19,500 | £0 | £0 | -£6,601 | -£20,920 |
| Year 4 | £19,000 | £5,715 | £19,500 | £0 | £0 | -£6,214 | -£27,134 |
| Year 5 | £19,570 | £5,886 | £19,500 | £0 | £0 | -£5,816 | -£32,950 |
Rent by the room upside
What we verified
5007
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureTenure typeFreehold
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCPostcode estimate — check the registerNot stated on the listing
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Area▾
Crimepolice.uk · monthlyChecking…
SchoolsGIAS · OfstedChecking…
FloodEA Flood Map · England onlyChecking…
Investor profile▾
Tenant profileBeds + postcode heuristicFamily / Rent by the room
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£3,900
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£32,950
Acquisition costs
25% deposit£100,000
Stamp duty£30,000
Refurb£15,111
Legal + survey£2,150
Mortgage + broker£7,000
Cash needed£154,261
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
Make an offer
Pro analysis — outcome range, stress tests & portfolio impact
Your notes
Description& agent copyOnTheMarket
Located in the heart of Bassett and occupying a generous corner plot, this superb three-bedroom detached family home is offered for sale with no forward chain.
The accommodation comprises a welcoming entrance hallway, spacious lounge, dining room, kitchen, sunroom and shower room, together with ample storage throughout. Upstairs, there are three well-proportioned bedrooms, a family bathroom and separate WC.
Externally, the property benefits from attractive front and rear ga…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice