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Year 5 disposal
⊞ View all 12
28/ 100
Weak
8.76% Rent by the room return before costs — verify the rent + comps locally.
Why it works
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- EPC B — MEES compliant
Why to be cautious
- Monthly profit −£1,822/mo — heavily negative — needs monthly capital injection
- -13.4% 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
−£2K/mo
You top up £2K/mo
Price vs market
Above comparable sales
+10% vs 12 sold
Return · IRR
-13.4%/yr
Loses money over 5 years
Cash to get in
£180K
Deposit + fees + refurb
Price £475KReturn before costs on price · Rent by the room 8.76%5-yr return on cash -51%Rent est. £2,245 (£745–£5,612)
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: £745–£5,612/mo · n=5
Financing
DepositYour cash in — the rest is the mortgage25% · £118,750
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 (£1,406–£2,625 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £356,250 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
-£311
after mortgage, operating costs & tax
Rent in£2,245/mo gross
£2,159/mo collected · £86/mo lost to voids
Where it goes
£1,930Mortgage£540Costs
Outgoings exceed rent — you top up £311/mo
Mortgage£1,930
Costs£540
Management£225
Maintenance£50
Insurance£40
CapEx reserve£112
Voids + council tax£9
Ltd co. accounts£104
Tax—
Shortfall−£311
Returns
Return before costs on price5.67%
Cash return on cash-2.22%
Gross margin£1,619
Cash needed£168,400
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.12
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 | £41,604 | £36,403 | £23,869 | £0 | £0 | -£18,668 | -£18,668 |
| Year 2 | £42,852 | £37,495 | £23,869 | £0 | £0 | -£18,512 | -£37,179 |
| Year 3 | £44,138 | £38,620 | £23,869 | £0 | £0 | -£18,351 | -£55,530 |
| Year 4 | £45,462 | £39,778 | £23,869 | £0 | £0 | -£18,185 | -£73,716 |
| Year 5 | £46,826 | £40,972 | £23,869 | £0 | £0 | -£18,015 | -£91,731 |
Disposal gain (gross)-£15,323
CGT£0
Net Disposal proceeds£511,327
What we verified
What we verified
60066 ok · 0 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
⚠️ Selective Licensing in scope
Additional HMO — district-wide
Rates as of May 2026
Building condition
Energy ratingB
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand B
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 cohortRG4 5LY · 5 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Reading · 3.1 km
Reason
5-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
5-bed · 1-bath · 1350 sqft
£31k–£61k
£ per sqft
building cost only
£23–£45
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£9,450–£17,550
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£14,850–£28,350
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingAlready licensed
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Mandatory
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 history86d on marketno cuts yet
Strategy matrix
Short-stay let / Airbnb wins — +£1,032/mo · £539/mo ahead of Rent by the room
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 5.67% | -£311 | £168,400 | -4.2% | Low | Feasible |
| Housing-benefit rent | 4.17% | -£900 | £168,400 | -25.0% | Med | Feasible |
| Council lease | 5.67% | -£216 | £168,400 | -3.9% | Low | Feasible |
| Refurb & refinance | 5.67% | -£311 | £192,900 | -3.7% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 14.92% | +£1,032 | £168,400 | 42.7% | High | Feasible |
| Buy, improve & sell | 0.00% | -£194 | £517,275 | 9% | Med | Feasible |
| Rent by the room | 4.84% * | +£493 | £170,750 | — | — | Feasible |
* Rent by the room shows net yield on cost for the audited HMO conversion deal (post-conversion, after running costs) — not gross like the other rows. Its 5-yr ROI reads “—” because the audited deal is a year-one snapshot; the HMO conversion panel below shows the cash-back / payback horizon.
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 Reading · cap £1,649/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,649
- Scheme type:
- other
- Premium:
- +700% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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 let85% occupancy
£230/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
-£606/mo cash flow vs Rent it out if converted to Rent by the room
6.06% Return before costs on price converted vs 5.67% as-is
£475k → 6-bed HMO @ ~£641/room: £3,709 pcm gross, ~£2,126 pcm net (4.8% net on £527k all-in incl. ~£12k works); GDV ~£364k → refinance releases ~£-83k (~£254k left in)
medium confidence
Unlocks ~£8,321/yr extra rent
5 → 6 lettable rooms · ~6.2% gross at max
Potential, not guaranteed (subject to planning + regs). Estimate from the floorplan (kitchen size assumed) — verify room sizes against the floorplan before offering.
How we calculated this
floorplan shows 7 habitable rooms (5 beds + 2 reception(s)); convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 6 lettable rooms; sized to Reading adopted standard (6.51/10.5 m²; Guide to amenity standards for Houses in Multiple Occupation (Reading BC, current 2026)); adds ~£693/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); mandatory HMO licence (5+ persons, England)
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
5 → 6 bed HMO+1 single4.84% net on cost3.47% cash-on-cashuplift 5.67% → 6.19%
💷 Refinance could release ~-£82,902
HMO licence
Sized to Reading's adopted HMO standards
Projections use documented assumptions (local room rates, typical conversion costs, 75% LTV at 5.5%, indicative regional valuation yields) and each council’s published HMO standards. Not financial advice. Verify room sizes, licensing and planning with the council and a surveyor before purchase.
Room mix (5 lettable rooms)
3× Double @ £725/mo1× Single @ £520/mo1× En-suite @ £771/mo
≈ £3,467/mo gross room income
As-is Rent it out
Monthly profit-£236
Return before costs on price5.67%
Cash needed£130,648
If converted to Rent by the room
Monthly profit-£843
Return before costs on price6.06%
Cash needed£146,648
Δ vs Rent it out Monthly profit-£606
+1 room (6 total)
Monthly profit+£348
Return before costs on price10.51%
Cash needed£156,648
Extra rent+£693/mo
Show conversion detail
Conversion cost estimate
£3,750
Range: £2,500 – £6,250
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£85,950–£151,875full refurb + room split
What's in this cost
- Kitchen£9,900–£19,800
- 1 × bathroom£6,750–£12,375
- Rewire£7,875–£12,600
- Replumb£6,300–£11,025
- Windows£17,325–£29,925
- Paint + decor£15,750–£26,775
- Flooring£22,050–£39,375
Based on 1730 HMO comps within 1.4 km
Comparables
sold within 0.5 miWide · CV 19.2%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment3 schools nearby
Nearby schoolsOfsted-rated, nearest first3 of 5
- Not ratedCaversham Nursery SchoolNursery · Local authority nursery school · RG4 5NA
- Not ratedNew Bridge Nursery SchoolNursery · Local authority nursery school · RG4 5AU
- Not ratedSt Anne's Catholic Primary SchoolPrimary · Voluntary aided school · RG4 5AA
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£26,940
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£3,730
Exit costs
Projected sale price (5y · 2%/yr growth)£524,438
Capital gain (pre-CGT)£49,438
Sale costs (~2.5%)£13,111
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-£7,146
Rates as of Oct 2024
Acquisition costs
£179,525cash neededPurchase price£475,000
Deposit (25%)£118,750
Stamp duty+5% additional-property surcharge£37,500
Refurb£12,000
Legal + survey£2,150
Mortgage fees£8,125
Total cash neededdeposit + costs (loan covers the rest)£179,525
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Grapevine Estate Agents take pleasure in bringing to the market a substantial and well presented five bedroom HMO property, tucked away within a quiet non through location and ideally positioned within comfortable walking distance of Reading town centre and Reading Station.
Currently operating as a successful House in Multiple Occupation, the property generates an impressive annual income of approximately £38,580, making it a highly attractive turnkey investment opportunity…
Floor plans
Nearby active comparables2 rentals
Comparable rentals
RG4 · same beds + typeMedian nearby: £750/mo · 2 of 2 already let-£1,495 vs our est
- Coach House Mews, Reading, RG4Let5b£750/moMay 2026
- Coach House Mews, Reading, RG4Let5b£750/moMay 2026
Other deals nearby
RG4 · ±25% priceNo other nearby investment deals matched on postcode prefix + bedrooms.
Listing metazoopla · Grapevine Estate Agents
About this listing
86 days · ZooplaPrice history
5-year price trend
Monthly profit
−£311
Cash needed
£168K
Return after costs
-2.22%
IRR
-2.86%
Listed 86d ago
Meadow Way, Caversham RG4
terraced · 5 bed · 1 bath
£475,000
est £2,245 · 5.67% gross
EPC B
1 / 12
38/100
Marginal
8.76% — verify the rent + comps locally.
5.67% Return before costs — around the area average for this property type.
Monthly profit −£311/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Energy rating B — Min. energy standard 2030 compliant.
Price
£475K
10% above sold comps
Return before costs (best)
8.76%
Rent by the room
Bedrooms
5
1 bath
Energy rating
B
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: £745–£5,612/mo · n=5
Financing
DepositYour cash in — the rest is the mortgage25% · £118,750
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 (£1,406–£2,625 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £356,250 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
-£311
after mortgage, operating costs & tax
Rent in£2,245/mo gross
£2,159/mo collected · £86/mo lost to voids
Where it goes
£1,930Mortgage£540Costs
Outgoings exceed rent — you top up £311/mo
Mortgage£1,930
Costs£540
Management£225
Maintenance£50
Insurance£40
CapEx reserve£112
Voids + council tax£9
Ltd co. accounts£104
Tax—
Shortfall−£311
Returns
Return before costs on price5.67%
Cash return on cash-2.22%
Gross margin£1,619
Cash needed£168,400
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.12
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 Reading · cap £1,649/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,649
- Scheme type:
- other
- Premium:
- +700% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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 | £26,940 | £6,478 | £23,156 | £0 | £0 | -£2,694 | -£2,694 |
| Year 2 | £27,748 | £6,672 | £23,156 | £0 | £0 | -£2,080 | -£4,775 |
| Year 3 | £28,581 | £6,873 | £23,156 | £0 | £0 | -£1,448 | -£6,223 |
| Year 4 | £29,438 | £7,079 | £23,156 | £0 | £0 | -£797 | -£7,020 |
| Year 5 | £30,321 | £7,291 | £23,156 | £0 | £0 | -£126 | -£7,146 |
Rent by the room upside
What we verified
6006
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedAlready licensed
TenureTenure typeFreehold
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCEnergy efficiency ratingB
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 heuristicRent by the room / sharers
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miWide · CV 19.2%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£4,631
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£7,146
Acquisition costs
25% deposit£118,750
Stamp duty£37,500
Refurb£1,875
Legal + survey£2,150
Mortgage + broker£8,125
Cash needed£168,400
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 copyZoopla
Grapevine Estate Agents take pleasure in bringing to the market a substantial and well presented five bedroom HMO property, tucked away within a quiet non through location and ideally positioned within comfortable walking distance of Reading town centre and Reading Station.
Currently operating as a successful House in Multiple Occupation, the property generates an impressive annual income of approximately £38,580, making it a highly attractive turnkey investment opportunity…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice