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Year 5 disposal
⊞ View all 12
25/ 100
Weak
7.37% 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 −£246/mo — significantly negative — real recurring drain
- -2.5% 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
−£246/mo
You top up £246/mo
Price
£280K
No local sold comps to compare
Return · IRR
-2.5%/yr
Loses money over 5 years
Cash to get in
£113K
Deposit + fees + refurb
Return before costs on price · Rent by the room 7.37%5-yr return on cash -7%Rent est. £1,353 (£1,248–£1,467)
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: £1,248–£1,467/mo · n=69
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
-£246
after mortgage, operating costs & tax
Rent in£1,353/mo gross
£1,301/mo collected · £52/mo lost to voids
Where it goes
£1,138Mortgage£409Costs
Outgoings exceed rent — you top up £246/mo
Mortgage£1,138
Costs£409
Management£135
Maintenance£67
Insurance£28
CapEx reserve£68
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£246
Returns
Return before costs on price5.80%
Cash return on cash-2.61%
Gross margin£892
Cash needed£112,980
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.14
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 | £16,236 | £4,913 | £13,650 | £0 | £0 | -£2,327 | -£2,327 |
| Year 2 | £16,723 | £5,060 | £13,650 | £0 | £0 | -£1,987 | -£4,314 |
| Year 3 | £17,225 | £5,212 | £13,650 | £0 | £0 | -£1,637 | -£5,951 |
| Year 4 | £17,742 | £5,368 | £13,650 | £0 | £0 | -£1,277 | -£7,228 |
| Year 5 | £18,274 | £5,530 | £13,650 | £0 | £0 | -£906 | -£8,134 |
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 3SX · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Birmingham City · 8.2 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 history25d on marketno cuts yet
Strategy matrix
Rent by the room wins — +£682/mo · £700/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 | 5.80% | -£246 | £112,980 | -7.2% | Low | Feasible |
| Housing-benefit rent | 3.53% | -£731 | £112,980 | -33.9% | Med | Feasible |
| Council lease | 5.80% | -£51 | £112,980 | 0.5% | Low | Feasible |
| Refurb & refinance | 5.80% | -£246 | £134,032 | -6.1% | 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 | 5.79% * | +£682 | £131,125 | — | — | 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
+£118/mo cash flow vs Rent it out if converted to Rent by the room
10.29% Return before costs on price converted vs 5.80% as-is
£280k → 6-bed HMO @ ~£562/room: £2,868 pcm gross, ~£1,645 pcm net (5.8% net on £341k all-in incl. ~£41k works); needs +1 bathroom; GDV ~£232k → refinance releases ~£-36k (~£167k left in)
medium confidence
Unlocks ~£21,372/yr extra rent
3 → 6 lettable rooms · ~7.2% 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 (3 beds + 4 reception(s)) in 89 m²; convert 3 spare room(s) to bedrooms, keeping one reception as the lounge → up to 6 lettable rooms (0 double, 3 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)); adds ~£1,781/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); mandatory HMO licence (5+ persons, England); 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 → 6 bed HMO+3 singles5.79% net on cost6.24% cash-on-cashuplift 3.72% → 7.18%
💷 Refinance could release ~-£35,872
HMO licence+1 bathroom needed
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 @ £601/mo1× Single @ £491/mo1× En-suite @ £689/mo
≈ £1,781/mo gross room income
As-is Rent it out
Monthly profit-£199
Return before costs on price5.80%
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+£118
+3 rooms (6 total)
Monthly profit+£615
Return before costs on price15.27%
Cash needed£127,898
Extra rent+£1,781/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 262 HMO comps within 3.6 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£16,236
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£2,951
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-£8,134
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
semi detached family residence situated in A most sought after location in sheldon three bedrooms two reception rooms potential to extend (subject to planning)
call our yardley office to arrange your viewing on now!
The property is situated on warmington road, Sheldon, Close to local schools, shops & transport links Accessed via a driveway leading to a double glazed entrance porch, the property comprises of: Entrance hallway two reception rooms, conservatory, kitchen, s…
Floor plans
Listing metazoopla · Prime Estate Agents - Yardley
About this listing
25 days · ZooplaPrice history
5-year price trend
Monthly profit
−£246
Cash needed
£113K
Return after costs
-2.61%
IRR
-2.54%
Listed 25d ago
Warmington Road, Sheldon, Birmingham B26
semi-detached · 3 bed · 1 bath
£280,000
est £1,353 · 5.80% gross
EPC D
1 / 12
25/100
Marginal
7.37% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£280K
Return before costs (best)
7.37%
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: £1,248–£1,467/mo · n=69
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
-£246
after mortgage, operating costs & tax
Rent in£1,353/mo gross
£1,301/mo collected · £52/mo lost to voids
Where it goes
£1,138Mortgage£409Costs
Outgoings exceed rent — you top up £246/mo
Mortgage£1,138
Costs£409
Management£135
Maintenance£67
Insurance£28
CapEx reserve£68
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£246
Returns
Return before costs on price5.80%
Cash return on cash-2.61%
Gross margin£892
Cash needed£112,980
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.14
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 | £16,236 | £4,913 | £13,650 | £0 | £0 | -£2,327 | -£2,327 |
| Year 2 | £16,723 | £5,060 | £13,650 | £0 | £0 | -£1,987 | -£4,314 |
| Year 3 | £17,225 | £5,212 | £13,650 | £0 | £0 | -£1,637 | -£5,951 |
| Year 4 | £17,742 | £5,368 | £13,650 | £0 | £0 | -£1,277 | -£7,228 |
| Year 5 | £18,274 | £5,530 | £13,650 | £0 | £0 | -£906 | -£8,134 |
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-£8,134
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
semi detached family residence situated in A most sought after location in sheldon three bedrooms two reception rooms potential to extend (subject to planning)
call our yardley office to arrange your viewing on now!
The property is situated on warmington road, Sheldon, Close to local schools, shops & transport links Accessed via a driveway leading to a double glazed entrance porch, the property comprises of: Entrance hallway two reception rooms, conservatory, kitchen, s…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice