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Year 5 disposal
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0/ 100
Weak
2.12% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- 2.12% return — below most lender Rent-covers-mortgage checks
- Monthly profit −£2,296/mo — heavily negative — needs monthly capital injection
- -10.1% 5y IRR — capital outlay disproportionate to returns
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
£775K
No local sold comps to compare
Return · IRR
-10.1%/yr
Loses money over 5 years
Cash to get in
£316K
Deposit + fees + refurb
Return before costs on price 2.12%5-yr return on cash -41%Rent est. £1,366 (£1,231–£1,516)
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: £1,231–£1,516/mo · n=10
Financing
DepositYour cash in — the rest is the mortgage25% · £193,750
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 (£29,621–£55,293 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £581,250 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£2,296
after mortgage, operating costs & tax
Rent in£1,366/mo gross
£1,313/mo collected · £53/mo lost to voids
Where it goes
£3,148Mortgage
Outgoings exceed rent — you top up £2,296/mo
Mortgage£3,148
Costs£461
Management£137
Maintenance£100
Insurance£40
CapEx reserve£68
Voids + council tax£12
Ltd co. accounts£104
Tax—
Shortfall−£2,296
Returns
Return before costs on price2.12%
Cash return on cash-8.71%
Gross margin£853
Cash needed£316,270
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.42
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 | £16,392 | £5,531 | £37,781 | £0 | £0 | -£26,920 | -£26,920 |
| Year 2 | £16,884 | £5,697 | £37,781 | £0 | £0 | -£26,594 | -£53,514 |
| Year 3 | £17,390 | £5,868 | £37,781 | £0 | £0 | -£26,259 | -£79,773 |
| Year 4 | £17,912 | £6,044 | £37,781 | £0 | £0 | -£25,913 | -£105,686 |
| Year 5 | £18,449 | £6,225 | £37,781 | £0 | £0 | -£25,557 | -£131,243 |
Disposal gain (gross)-£50,624
CGT£0
Net Disposal proceeds£834,271
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 cohortB38 8RH · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Birmingham · 5.3 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 · 2559 sqft
£63k–£122k
£ per sqft
building cost only
£25–£48
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 4 × bathroom · Full strip + retile£13,300–£26,600
- Paint + decor£17,913–£33,267
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£28,149–£53,739
Guide rates · UK May 2026
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 history0d on marketno cuts yet
Strategy matrix
Council lease wins — -£2,095/mo · £201/mo ahead of Rent it out
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 2.12% | -£2,296 | £316,270 | -41.5% | Low | Feasible |
| Housing-benefit rent | 1.70% | -£2,590 | £316,270 | -46.8% | Med | Feasible |
| ⭐ Council lease | 2.12% | -£2,095 | £316,270 | -38.5% | Low | Feasible |
| Refurb & refinance | 2.12% | -£2,296 | £370,818 | -35.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£244 | £900,693 | 3% | Med | Feasible |
| Rent by the room | 3.41% | -£2,528 | £316,270 | -43.7% | — | Feasible |
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
Rent by the room conversion upside
+£107/mo cash flow vs Rent it out if converted to Rent by the room
3.72% Return before costs on price converted vs 2.12% as-is
As-is Rent it out
Monthly profit-£2,122
Return before costs on price2.12%
Cash needed£205,648
If converted to Rent by the room
Monthly profit-£2,015
Return before costs on price3.72%
Cash needed£221,648
Δ vs Rent it out Monthly profit+£107
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
£128,463–£240,031full refurb + room split
What's in this cost
- Kitchen£9,180–£18,360
- 4 × bathroom£24,600–£45,100
- Rewire£10,236–£17,913
- Replumb£7,677–£15,354
- Windows£25,590–£46,062
- Paint + decor£20,472–£38,385
- Flooring£30,708–£58,857
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 & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- Requires improvementFairway Primary AcademyPrimary · Academy converter · B38 8XQ
- Not ratedKings Norton Nursery SchoolNursery · Local authority nursery school · B38 8SY
- Not ratedWest Heath Primary SchoolPrimary · Community school · B38 8HU
- Not ratedSt Thomas Aquinas Catholic SchoolSecondary · Academy converter · B38 8AP
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£16,392
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£27,551
Exit costs
Projected sale price (5y · 2%/yr growth)£855,663
Capital gain (pre-CGT)£80,663
Sale costs (~2.5%)£21,392
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-£131,243
Rates as of Oct 2024
Acquisition costs
£316,270cash neededPurchase price£775,000
Deposit (25%)£193,750
Stamp duty+5% additional-property surcharge£67,500
Refurb£39,495
Legal + survey£2,900
Mortgage fees£12,625
Total cash neededdeposit + costs (loan covers the rest)£316,270
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
A beautifully presented four bedroom dormer bungalow with self-contained annexe, situated in Kings Norton, Birmingham. This impressive dormer bungalow has been modernised and extended by the current owners to provide flexible accommodation, including a spacious open-plan kitchen/diner/family area. The ground floor also offers a lounge, office, family room, shower room and utility room, with three bedrooms and a family bathroom on the first floor. A self-contained annexe provi…
Floor plans
Listing metazoopla · Arden Estates
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£2,296
Cash needed
£316K
Return after costs
-8.71%
IRR
-10.07%
Redditch Road, Kings Norton B38
detached · 4 bed · 4 bath · 2,559 sqft
£775,000
est £1,366 · 2.12% gross
EPC D
1 / 38
0/100
Marginal
2.12% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£775K
Return before costs
2.12%
est rent £1,366/monot enough comparablesRange £1,231–£1,516/mo (Q1–Q3)
Bedrooms
4
4 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: £1,231–£1,516/mo · n=10
Financing
DepositYour cash in — the rest is the mortgage25% · £193,750
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 (£29,621–£55,293 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £581,250 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£2,296
after mortgage, operating costs & tax
Rent in£1,366/mo gross
£1,313/mo collected · £53/mo lost to voids
Where it goes
£3,148Mortgage
Outgoings exceed rent — you top up £2,296/mo
Mortgage£3,148
Costs£461
Management£137
Maintenance£100
Insurance£40
CapEx reserve£68
Voids + council tax£12
Ltd co. accounts£104
Tax—
Shortfall−£2,296
Returns
Return before costs on price2.12%
Cash return on cash-8.71%
Gross margin£853
Cash needed£316,270
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.42
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
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 | £16,392 | £5,531 | £37,781 | £0 | £0 | -£26,920 | -£26,920 |
| Year 2 | £16,884 | £5,697 | £37,781 | £0 | £0 | -£26,594 | -£53,514 |
| Year 3 | £17,390 | £5,868 | £37,781 | £0 | £0 | -£26,259 | -£79,773 |
| Year 4 | £17,912 | £6,044 | £37,781 | £0 | £0 | -£25,913 | -£105,686 |
| Year 5 | £18,449 | £6,225 | £37,781 | £0 | £0 | -£25,557 | -£131,243 |
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£7,556
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£131,243
Acquisition costs
25% deposit£193,750
Stamp duty£67,500
Refurb£39,495
Legal + survey£2,900
Mortgage + broker£12,625
Cash needed£316,270
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
A beautifully presented four bedroom dormer bungalow with self-contained annexe, situated in Kings Norton, Birmingham. This impressive dormer bungalow has been modernised and extended by the current owners to provide flexible accommodation, including a spacious open-plan kitchen/diner/family area. The ground floor also offers a lounge, office, family room, shower room and utility room, with three bedrooms and a family bathroom on the first floor. A self-contained annexe provi…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice