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Year 5 disposal
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Weak
5.31% Rent by the room return before costs — verify the rent + comps locally.
Why it works
- EPC C — MEES compliant
Why to be cautious
- 3.57% return — below most lender Rent-covers-mortgage checks
- Monthly profit −£1,125/mo — heavily negative — needs monthly capital injection
- -7.2% 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.
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£1K/mo
You top up £1K/mo
Price
£550K
No local sold comps to compare
Return · IRR
-7.2%/yr
Loses money over 5 years
Cash to get in
£217K
Deposit + fees + refurb
Return before costs on price · Rent by the room 5.31%5-yr return on cash -27%Rent est. £1,637 (£1,391–£1,927)
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: £1,391–£1,927/mo · n=1
Financing
DepositYour cash in — the rest is the mortgage25% · £137,500
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 (£17,026–£31,781 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £412,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£1,125
after mortgage, operating costs & tax
Rent in£1,637/mo gross
£1,574/mo collected · £63/mo lost to voids
Where it goes
£2,234Mortgage£465Costs
Outgoings exceed rent — you top up £1,125/mo
Mortgage£2,234
Costs£465
Management£164
Maintenance£50
Insurance£40
CapEx reserve£82
Voids + council tax£10
Ltd co. accounts£104
Selective licensing£15
Tax—
Shortfall−£1,125
Returns
Return before costs on price3.57%
Cash return on cash-6.21%
Gross margin£1,109
Cash needed£217,351
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.70
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 | £19,644 | £5,577 | £26,813 | £0 | £0 | -£12,746 | -£12,746 |
| Year 2 | £20,233 | £5,744 | £26,813 | £0 | £0 | -£12,324 | -£25,069 |
| Year 3 | £20,840 | £5,917 | £26,813 | £0 | £0 | -£11,889 | -£36,958 |
| Year 4 | £21,466 | £6,094 | £26,813 | £0 | £0 | -£11,441 | -£48,399 |
| Year 5 | £22,109 | £6,277 | £26,813 | £0 | £0 | -£10,980 | -£59,379 |
Disposal gain (gross)-£28,538
CGT£0
Net Disposal proceeds£592,063
What we verified
What we verified
60066 ok · 0 caution · 0 fail · 6 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
Uncertain50% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- local council HMO approval rate 49% (410 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 100 m vs 10% policy
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
⚠️ Selective Licensing in scope
Selective: 25 of 69 wards (Aston, Sparkbrook, Ladywood, Edgbaston etc.)
Rates as of May 2026
Building condition
Energy ratingC
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand C
MEES 2030 compliance
C required for new tenancies
PASS
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 profileFamily let
Tenant profilelikely cohortB16 9SH · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Birmingham · 2.9 km
Reason
4-bed house in a suburban area — family-let demand dominates; larger property may also work as a sharer HMO.
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
4-bed · 4-bath · 1170 sqft
£38k–£75k
£ per sqft
building cost only
£33–£64
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 4 × bathroom · Full strip + retile£13,300–£26,600
- Paint + decor£8,190–£15,210
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£12,870–£24,570
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 history25d on marketno cuts yet
Strategy matrix
Short-stay let / Airbnb wins — -£790/mo · £98/mo ahead of Council lease
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 3.57% | -£1,125 | £217,351 | -27.3% | Low | Feasible |
| Housing-benefit rent | 2.39% | -£1,632 | £217,351 | -41.6% | Med | Feasible |
| Council lease | 3.57% | -£888 | £217,351 | -22.2% | Low | Feasible |
| Refurb & refinance | 3.57% | -£1,110 | £253,931 | -23.0% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 6.67% | -£790 | £217,351 | -19.1% | High | Feasible |
| Buy, improve & sell | 0.00% | -£194 | £629,681 | 5% | Med | Feasible |
| Rent by the room | 5.31% | -£2,311 | £251,351 | -50.4% | — | Feasible |
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Birmingham · cap £1,097/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Birmingham
- LHA monthly cap:
- £1,097
- Scheme type:
- PSL
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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
Local lettings demandby strategyLive area data
Short-stay let37% occupancy
£270/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
-£113/mo cash flow vs Rent it out if converted to Rent by the room
5.24% Return before costs on price converted vs 3.57% as-is
Room mix (4 lettable rooms)
2× Double @ £617/mo1× Single @ £522/mo1× En-suite @ £681/mo
≈ £2,436/mo gross room income
As-is Rent it out
Monthly profit-£1,023
Return before costs on price3.57%
Cash needed£149,398
If converted to Rent by the room
Monthly profit-£1,136
Return before costs on price5.24%
Cash needed£165,398
Δ vs Rent it out Monthly profit-£113
Show conversion detail
Conversion cost estimate
£24,200
Range: £17,600 – £33,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 50% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- local council HMO approval rate 49% (410 decisions)
≈0.0% within 100 m vs 10% policy
£81,880–£153,160full refurb + room split
What's in this cost
- Kitchen£9,180–£18,360
- 4 × bathroom£24,600–£45,100
- Rewire£5,200–£9,100
- Replumb£3,900–£7,800
- Windows£13,000–£23,400
- Paint + decor£10,400–£19,500
- Flooring£15,600–£29,900
Based on 6716 HMO comps within 996 m
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
CITY WIDE HMO
≈0.0% within 100 m vs 10% policy
Schools & catchment3 schools nearby
Nearby schoolsOfsted-rated, nearest first3 of 5
- InadequateThe Oratory Roman Catholic Primary SchoolPrimary · Academy sponsor led · B16 9ER
- Not ratedGeorge Dixon AcademySecondary · Academy converter · B16 9GD
- Not ratedSt Paul's School for GirlsSecondary · Voluntary aided school · B16 9SL
Ofsted · postcode-area match. Catchment areas vary year to year — verify with the local council before relying for school admissions.
Tax treatment
Annual gross rent£19,644
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£13,501
Exit costs
Projected sale price (5y · 2%/yr growth)£607,244
Capital gain (pre-CGT)£57,244
Sale costs (~2.5%)£15,181
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-£59,379
Rates as of Oct 2024
Acquisition costs
£217,351cash neededPurchase price£550,000
Deposit (25%)£137,500
Stamp duty+5% additional-property surcharge£45,000
Refurb£22,701
Legal + survey£2,900
Mortgage fees£9,250
Total cash neededdeposit + costs (loan covers the rest)£217,351
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
A superbly presented and extremely spacious four bedroom executive property located in this sought-after location in Edgbaston near the reservoir, perfectly situated for convenient access to Birmingham City Centre, Queen Elizabeth Medical Complex and City Hospital. Set over three floors the property provides luxurious well appointed living accommodation with the additional benefit of off-street parking for two vehicles and a large secluded rear garden. Being Sold with No Upwa…
Floor plans
Listing metaonthemarket · Hunters - Harborne
About this listing
25 days · OnTheMarketPrice history
5-year price trend
Monthly profit
−£1,125
Cash needed
£217K
Return after costs
-6.21%
IRR
-7.19%
Listed 25d ago
Vernon Road, Birmingham, B16 9SH, Birmingham, B16 9SH
terraced · 4 bed · 4 bath
£550,000
est £1,637 · 3.57% gross
EPC C
1 / 5
0/100
Marginal
5.31% — verify the rent + comps locally.
3.57% Return before costs — around the area average for this property type.
Monthly profit −£1,125/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Energy rating C — Min. energy standard 2030 compliant.
Price
£550K
Return before costs (best)
5.31%
Rent by the room
Bedrooms
4
4 bath
Energy rating
C
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: £1,391–£1,927/mo · n=1
Financing
DepositYour cash in — the rest is the mortgage25% · £137,500
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 (£17,026–£31,781 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £412,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£1,125
after mortgage, operating costs & tax
Rent in£1,637/mo gross
£1,574/mo collected · £63/mo lost to voids
Where it goes
£2,234Mortgage£465Costs
Outgoings exceed rent — you top up £1,125/mo
Mortgage£2,234
Costs£465
Management£164
Maintenance£50
Insurance£40
CapEx reserve£82
Voids + council tax£10
Ltd co. accounts£104
Selective licensing£15
Tax—
Shortfall−£1,125
Returns
Return before costs on price3.57%
Cash return on cash-6.21%
Gross margin£1,109
Cash needed£217,351
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.70
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Birmingham · cap £1,097/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Birmingham
- LHA monthly cap:
- £1,097
- Scheme type:
- PSL
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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 | £19,644 | £5,577 | £26,813 | £0 | £0 | -£12,746 | -£12,746 |
| Year 2 | £20,233 | £5,744 | £26,813 | £0 | £0 | -£12,324 | -£25,069 |
| Year 3 | £20,840 | £5,917 | £26,813 | £0 | £0 | -£11,889 | -£36,958 |
| Year 4 | £21,466 | £6,094 | £26,813 | £0 | £0 | -£11,441 | -£48,399 |
| Year 5 | £22,109 | £6,277 | £26,813 | £0 | £0 | -£10,980 | -£59,379 |
Rent by the room upside
What we verified
6006
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▾
EPCEnergy efficiency ratingC
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£5,363
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£59,379
Acquisition costs
25% deposit£137,500
Stamp duty£45,000
Refurb£22,701
Legal + survey£2,900
Mortgage + broker£9,250
Cash needed£217,351
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
A superbly presented and extremely spacious four bedroom executive property located in this sought-after location in Edgbaston near the reservoir, perfectly situated for convenient access to Birmingham City Centre, Queen Elizabeth Medical Complex and City Hospital. Set over three floors the property provides luxurious well appointed living accommodation with the additional benefit of off-street parking for two vehicles and a large secluded rear garden. Being Sold with No Upwa…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice