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Year 5 disposal
⊞ View all 15
27/ 100
Weak
7.67% Rent by the room return before costs — verify the rent + comps locally.
Why it works
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- Monthly profit −£236/mo — significantly negative — real recurring drain
- -2.4% 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
−£236/mo
You top up £236/mo
Price
£280K
No local sold comps to compare
Return · IRR
-2.4%/yr
Loses money over 5 years
Cash to get in
£113K
Deposit + fees + refurb
Return before costs on price · Rent by the room 7.67%5-yr return on cash -7%Rent est. £1,364 (£1,272–£1,463)
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: £1,272–£1,463/mo · n=66
Financing
DepositYour cash in — the rest is the mortgage25% · £70,000
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £210,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£236
after mortgage, operating costs & tax
Rent in£1,364/mo gross
£1,312/mo collected · £52/mo lost to voids
Where it goes
£1,138Mortgage£410Costs
Outgoings exceed rent — you top up £236/mo
Mortgage£1,138
Costs£410
Management£136
Maintenance£67
Insurance£28
CapEx reserve£68
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£236
Returns
Return before costs on price5.85%
Cash return on cash-2.51%
Gross margin£901
Cash needed£112,980
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.15
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 | £16,368 | £4,923 | £13,650 | £0 | £0 | -£2,205 | -£2,205 |
| Year 2 | £16,859 | £5,071 | £13,650 | £0 | £0 | -£1,862 | -£4,067 |
| Year 3 | £17,365 | £5,223 | £13,650 | £0 | £0 | -£1,508 | -£5,575 |
| Year 4 | £17,886 | £5,380 | £13,650 | £0 | £0 | -£1,144 | -£6,719 |
| Year 5 | £18,422 | £5,541 | £13,650 | £0 | £0 | -£769 | -£7,488 |
Disposal gain (gross)-£16,366
CGT£0
Net Disposal proceeds£301,414
What we verified
What we verified
51065 ok · 1 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
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
Rates as of May 2026
Building condition
Energy ratingD
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand D
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£3k–£7k
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 cohortB26 3JX · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Birmingham City · 8.1 km
Reason
3-bed house in a suburban area — family-let demand dominates; check local school catchment ratings.
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 · 1-bath · 990 sqft
£25k–£49k
£ per sqft
building cost only
£25–£49
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- 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 history39d on marketno cuts yet
Strategy matrix
Rent by the room wins — +£330/mo · £348/mo ahead of Short-stay let / Airbnb (after room-conversion)
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 5.85% | -£236 | £112,980 | -6.6% | Low | Feasible |
| Housing-benefit rent | 3.53% | -£730 | £112,980 | -33.9% | Med | Feasible |
| Council lease | 5.85% | -£41 | £112,980 | 1.1% | Low | Feasible |
| Refurb & refinance | 5.85% | -£236 | £134,032 | -5.6% | Med | Feasible |
| Short-stay let / Airbnb | 10.03% | -£18 | £112,980 | 2.4% | High | Feasible |
| Buy, improve & sell | 0.00% | -£199 | £324,832 | 4% | Med | Feasible |
| ⭐ Rent by the room | 4.78% * | +£330 | £114,625 | — | — | 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) context339 active short-lets nearby
Short-let market context
- 339 active short-let listings in this postcode
- Superhosts earn -13.7% premium here
Housing-benefit (LHA) scheme detailBRMA Birmingham · cap £823/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Birmingham
- LHA monthly cap:
- £823
- 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 let57% occupancy
£135/night ADR
Based on 71 short-let comps nearby
Rent by the room conversion upside
+£109/mo cash flow vs Rent it out if converted to Rent by the room
10.29% Return before costs on price converted vs 5.85% as-is
£280k → 4-bed HMO @ ~£564/room: £2,261 pcm gross, ~£1,293 pcm net (4.8% net on £325k all-in incl. ~£24k works). FULL REFURB (1 small room → en-suite/bath) → 5-bed, ~£1,672 pcm net (6.0% on £335k incl. ~£35k) — ceiling, subject to survey
medium confidence
Unlocks ~£7,156/yr extra rent
3 → 4 lettable rooms · ~5.3% 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 6 habitable rooms (3 beds + 3 reception(s)) in 64 m²; open-plan kitchen/diner serves as the communal living space, so all 1 convertible room(s) become bedrooms → up to 4 lettable rooms (1 double, 0 single) (incl. the garage — convertible to a bedroom or the communal area); sized to Birmingham adopted standard (7.5/11.5 m²; Houses in Multiple Occupation Supplementary Planning Document (Birmingham City Council, April 2022), Policy DM11 criterion f; HMO Fees 2022 to 2023 Summary Sheet (birmingham.gov.uk); Additional licensing for HMOs (live page)); 1 room size(s) not printed on the plan — counted but unverified vs the standard; FULL REFURB (1 small room(s) → en-suite/extra bath) → up to 5 rooms (ceiling, subject to windows/layout/planning); adds ~£596/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); Birmingham runs borough-wide additional HMO licensing — a licence is likely required even below 5 occupants; Article 4 — planning permission needed
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
3 → 4 bed HMO+1 double4.78% net on cost3.46% cash-on-cashuplift 3.91% → 5.34%
4-bed · 4.78% net on cost · 3.46% cash-on-cash
Sized to Birmingham'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 (3 lettable rooms)
1× Double @ £611/mo1× Single @ £490/mo1× En-suite @ £689/mo
≈ £1,789/mo gross room income
As-is Rent it out
Monthly profit-£190
Return before costs on price5.85%
Cash needed£81,898
If converted to Rent by the room
Monthly profit-£81
Return before costs on price10.29%
Cash needed£97,898
Δ vs Rent it out Monthly profit+£109
+1 room (4 total)
Monthly profit-£92
Return before costs on price10.22%
Cash needed£107,898
Extra rent+£596/mo
Show conversion detail
Conversion cost estimate
£52,800
Range: £46,200 – £61,600
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
£56,030–£105,535full refurb + room split
What's in this cost
- Kitchen£9,180–£18,360
- 1 × bathroom£6,150–£11,275
- Rewire£4,400–£7,700
- Replumb£3,300–£6,600
- Windows£11,000–£19,800
- Paint + decor£8,800–£16,500
- Flooring£13,200–£25,300
Based on 264 HMO comps within 3.5 km
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
- GoodStanville Primary SchoolPrimary · Community school · B26 3YN
- GoodSt Thomas More Catholic Primary SchoolPrimary · Academy sponsor led · B26 3HU
- Not ratedMapledene Primary SchoolPrimary · Community school · B26 3XE
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£16,368
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£2,835
Exit costs
Projected sale price (5y · 2%/yr growth)£309,143
Capital gain (pre-CGT)£29,143
Sale costs (~2.5%)£7,729
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-£7,488
Rates as of Oct 2024
Acquisition costs
£112,980cash neededPurchase price£280,000
Deposit (25%)£70,000
Stamp duty+5% additional-property surcharge£18,000
Refurb£17,630
Legal + survey£2,150
Mortgage fees£5,200
Total cash neededdeposit + costs (loan covers the rest)£112,980
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Situated in a convenient location in Sheldon, this extended three-bedroom semi-detached property offers spacious and versatile accommodation, making it an ideal family home. Overall, this is a spacious and well-located family home offering excellent potential and convenient access to local amenities, major transport links and surrounding areas.
Situated in a convenient location in Sheldon, this extended three-bedroom semi-detached property offers spacious and versatile accom…
Floor plans
Listing metazoopla · ENCASA SALES & LETTINGS LIMITED - B92
About this listing
39 days · ZooplaPrice history
5-year price trend
Monthly profit
−£236
Cash needed
£113K
Return after costs
-2.51%
IRR
-2.43%
Listed 39d ago
Coalway Avenue, Sheldon B26
semi-detached · 3 bed · 1 bath
£280,000
est £1,364 · 5.85% gross
EPC D
1 / 15
27/100
Marginal
7.67% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£280K
Return before costs (best)
7.67%
Rent by the room
Bedrooms
3
1 bath
Energy rating
D
Energy rating
Deal flags1 issue
EPC D — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
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: £1,272–£1,463/mo · n=66
Financing
DepositYour cash in — the rest is the mortgage25% · £70,000
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £210,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£236
after mortgage, operating costs & tax
Rent in£1,364/mo gross
£1,312/mo collected · £52/mo lost to voids
Where it goes
£1,138Mortgage£410Costs
Outgoings exceed rent — you top up £236/mo
Mortgage£1,138
Costs£410
Management£136
Maintenance£67
Insurance£28
CapEx reserve£68
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£236
Returns
Return before costs on price5.85%
Cash return on cash-2.51%
Gross margin£901
Cash needed£112,980
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.15
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context339 active short-lets nearby
Short-let market context
- 339 active short-let listings in this postcode
- Superhosts earn -13.7% premium here
Housing-benefit (LHA) scheme detailBRMA Birmingham · cap £823/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Birmingham
- LHA monthly cap:
- £823
- 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 | £16,368 | £4,923 | £13,650 | £0 | £0 | -£2,205 | -£2,205 |
| Year 2 | £16,859 | £5,071 | £13,650 | £0 | £0 | -£1,862 | -£4,067 |
| Year 3 | £17,365 | £5,223 | £13,650 | £0 | £0 | -£1,508 | -£5,575 |
| Year 4 | £17,886 | £5,380 | £13,650 | £0 | £0 | -£1,144 | -£6,719 |
| Year 5 | £18,422 | £5,541 | £13,650 | £0 | £0 | -£769 | -£7,488 |
Rent by the room upside
What we verified
5106
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▾
EPC~£3,000–£7,000 to upgrade to CD
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£2,730
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£7,488
Acquisition costs
25% deposit£70,000
Stamp duty£18,000
Refurb£17,630
Legal + survey£2,150
Mortgage + broker£5,200
Cash needed£112,980
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
Situated in a convenient location in Sheldon, this extended three-bedroom semi-detached property offers spacious and versatile accommodation, making it an ideal family home. Overall, this is a spacious and well-located family home offering excellent potential and convenient access to local amenities, major transport links and surrounding areas.
Situated in a convenient location in Sheldon, this extended three-bedroom semi-detached property offers spacious and versatile accom…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice