Skip to main contenthow this is calculated →
Year 5 disposal
BMV -13%
⊞ View all 16
48/ 100
Caution
Real 10.20% Rent by the room return before costs but flagged risks need pricing in.
Why it works
- 7.72% return before costs — above-market
- 10.2% Rent by the room return before costs (net 5.56% after CapEx + bills) — conversion play
- Priced below market -13% vs 12 nearby sold (last 12 mo) — instant equity
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Monthly profit −£1/mo — mildly negative — equity build may cover
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
- EPC band not stated — verify the certificate before offering (2030 MEES minimum is band C).
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£1/mo
You top up £1/mo
Price vs market
Below market value
-13% vs 12 sold · interior unseen
Return · IRR
0.3%/yr
Modest annualised return
Cash left in
£63K
Stays in after refinancing at value
Price £215KCash to buy £87KReturn before costs on price · Rent by the room 10.20%5-yr return on cash 6%Rent est. £1,383 (£1,324–£1,445)
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: £1,324–£1,445/mo · n=22
Financing
DepositYour cash in — the rest is the mortgage25% · £53,750
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £161,250 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 £200K–£400K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£1
after mortgage, operating costs & tax
Rent in£1,383/mo gross
£1,330/mo collected · £53/mo lost to voids
Where it goes
£873Mortgage£458Costs
Outgoings exceed rent — you top up £1/mo
Mortgage£873
Costs£458
Management£138
Maintenance£100
Insurance£28
CapEx reserve£69
Voids + council tax£8
Ltd co. accounts£104
Selective licensing£10
Tax—
Shortfall−£1
Returns
Return before costs on price7.72%
Cash return on cash-0.02%
Gross margin£872
Cash needed£87,336
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.52
Rent-covers-mortgage check PASS · stress 6.5% (target 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 | £16,596 | £5,492 | £10,481 | £0 | £118 | £504 | £504 |
| Year 2 | £17,094 | £5,657 | £10,481 | £0 | £182 | £773 | £1,278 |
| Year 3 | £17,607 | £5,827 | £10,481 | £0 | £247 | £1,052 | £2,329 |
| Year 4 | £18,135 | £6,002 | £10,481 | £0 | £314 | £1,338 | £3,667 |
| Year 5 | £18,679 | £6,182 | £10,481 | £0 | £383 | £1,633 | £5,300 |
Disposal gain (gross)-£12,918
CGT£0
Net Disposal proceeds£231,443
What we verified
What we verified
50075 ok · 0 caution · 0 fail · 7 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
Uncertain43% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (3) — limited history
- 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 scheme — 103 designated areas (~29k properties)
Rates as of May 2026
Building condition
Energy ratingUnknown
EPC& 2030 deadlineEPC register
EPC band not available in the listing. The 2030 MEES minimum is band C — verify the certificate before offering.
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 cohortDH6 1QP · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Northumbria · 24 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 · 2-bath · 990 sqft
£28k–£56k
£ per sqft
building cost only
£29–£56
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- 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 history127d on market1 price change
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£171,000 in 2021 → £215,000 asking
+25.7%in 5y
- 2021£171,000+0.6% in 3y
- 2018£169,995—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Rent by the room wins — +£678/mo · £671/mo ahead of Refurb & refinance (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 | 7.72% | -£1 | £87,336 | 6.1% | Low | Feasible |
| Housing-benefit rent | 2.65% | -£769 | £87,336 | -49.7% | Med | Feasible |
| Council lease | 2.65% | -£659 | £87,336 | -44.4% | Low | Feasible |
| Refurb & refinance | 7.72% | +£7 | £104,130 | 5.6% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£232 | £250,405 | 3% | Med | Feasible |
| ⭐ Rent by the room | 6.69% * | +£678 | £92,800 | — | — | 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.
Housing-benefit (LHA) scheme detailBRMA Durham · cap £474/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Durham
- LHA monthly cap:
- £474
- Scheme type:
- leasing
- Premium:
- +0% 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
+£76/mo cash flow vs Rent it out if converted to Rent by the room
13.40% Return before costs on price converted vs 7.72% as-is
£215k → 4-bed HMO @ ~£591/room: £2,471 pcm gross, ~£1,417 pcm net (6.7% net on £254k all-in incl. ~£24k works)
medium confidence
Unlocks ~£7,312/yr extra rent
3 → 4 lettable rooms · ~6.8% 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 5 habitable rooms (3 beds + 2 reception(s)) in 111 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms (1 double, 0 single) (incl. the garage — convertible to a bedroom or the communal area); sized to County Durham adopted standard (6.51/10.22 m²; Durham CC Standards for Shared Houses (Category B)); adds ~£609/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); 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 double6.69% net on cost8.76% cash-on-cashuplift 5.43% → 6.85%
Sized to County Durham'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)
3× Double @ £609/mo
≈ £1,828/mo gross room income
As-is Rent it out
Monthly profit+£65
Return before costs on price7.72%
Cash needed£65,648
If converted to Rent by the room
Monthly profit+£140
Return before costs on price13.40%
Cash needed£81,648
Δ vs Rent it out Monthly profit+£76
+1 room (4 total)
Monthly profit+£162
Return before costs on price13.60%
Cash needed£91,648
Extra rent+£609/mo
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 43% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (3) — limited history
≈0.0% within 100 m vs 10% policy
£57,150–£103,440full refurb + room split
What's in this cost
- Kitchen£8,820–£17,640
- 2 × bathroom£11,700–£21,450
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£7,920–£12,870
- Flooring£11,880–£20,790
Based on 312 HMO comps within 4.4 km
Comparables
sold within 0.5 miWide · CV 15.2%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Citywide Article 4 (County Durham)
≈0.0% within 100 m vs 10% policy
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodElemore Hall SchoolNot applicable · Community special school · DH6 1QD
- Not ratedLudworth Primary SchoolPrimary · Community school · DH6 1LZ
- Not ratedPittington Primary SchoolPrimary · Community school · DH6 1AF
- Not ratedSherburn Primary SchoolPrimary · Community school · DH6 1DU
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£16,596
Section 24 credit£0
Annual tax due£118
Post-tax Monthly profit annual-£134
Exit costs
Projected sale price (5y · 2%/yr growth)£237,377
Capital gain (pre-CGT)£22,377
Sale costs (~2.5%)£5,934
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£5,300
Rates as of Oct 2024
Acquisition costs
£87,336cash neededPurchase price£215,000
Deposit (25%)£53,750
Stamp duty+5% additional-property surcharge£12,550
Refurb£15,111
Legal + survey£1,700
Mortgage fees£4,225
Total cash neededdeposit + costs (loan covers the rest)£87,336
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Stylish Three-Bedroom Detached Home with Panoramic Countryside Views
Set within a sought-after modern cul-de-sac development in the village of Sherburn Hill, approximately 4.5 miles from Durham City, this impressive three-bedroom detached family home offers an exceptional blend of space, style, and scenery.
Occupying a prime position, the property enjoys stunning open views to the rear across rolling farmland, with bi-folding doors perfectly framing the landscape and extend…
Floor plans
Nearby active comparables1 rental
Comparable rentals
DH6 · same beds + typeMedian nearby: £995/mo · 1 of 1 already let-£388 vs our est
- Philip Avenue, Bowburn, DurhamLet3b£995/moMay 2026
Other deals nearby
DH6 · ±25% priceNo other nearby investment deals matched on postcode prefix + bedrooms.
Listing metarightmove · Dowen
About this listing
127 days · RightmovePrice history
5-year price trend
Monthly profit
−£1
Cash needed
£87K
Return after costs
-0.02%
IRR
0.29%
Listed 127d ago
Hastings Close, Sherburn Hill, Durham, DH6
detached · 3 bed · 2 bath
£215,000
est £1,383 · 7.72% gross
Priced below market
1 / 16
48/100
Caution
10.20% — verify the rent + comps locally.
Priced below market -13% vs 12 nearby sold (last 12 mo)
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
7.72% Return before costs — above-market
10.2% Rent by the room Return before costs — conversion play
Price
£215K
13% below sold comps
Return before costs (best)
10.20%
Rent by the room
Bedrooms
3
2 bath
Energy rating
—
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: £1,324–£1,445/mo · n=22
Financing
DepositYour cash in — the rest is the mortgage25% · £53,750
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £161,250 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 £200K–£400K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£1
after mortgage, operating costs & tax
Rent in£1,383/mo gross
£1,330/mo collected · £53/mo lost to voids
Where it goes
£873Mortgage£458Costs
Outgoings exceed rent — you top up £1/mo
Mortgage£873
Costs£458
Management£138
Maintenance£100
Insurance£28
CapEx reserve£69
Voids + council tax£8
Ltd co. accounts£104
Selective licensing£10
Tax—
Shortfall−£1
Returns
Return before costs on price7.72%
Cash return on cash-0.02%
Gross margin£872
Cash needed£87,336
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.52
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Durham · cap £474/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Durham
- LHA monthly cap:
- £474
- Scheme type:
- leasing
- Premium:
- +0% 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 | £16,596 | £5,492 | £10,481 | £0 | £118 | £504 | £504 |
| Year 2 | £17,094 | £5,657 | £10,481 | £0 | £182 | £773 | £1,278 |
| Year 3 | £17,607 | £5,827 | £10,481 | £0 | £247 | £1,052 | £2,329 |
| Year 4 | £18,135 | £6,002 | £10,481 | £0 | £314 | £1,338 | £3,667 |
| Year 5 | £18,679 | £6,182 | £10,481 | £0 | £383 | £1,633 | £5,300 |
Rent by the room upside
What we verified
5007
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▾
EPCPostcode estimate — check the registerNot stated on the listing
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 miWide · CV 15.2%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,096
Annual rental tax£0
CGT yr 5£0 · company level
5y net total£5,300
Acquisition costs
25% deposit£53,750
Stamp duty£12,550
Refurb£15,111
Legal + survey£1,700
Mortgage + broker£4,225
Cash needed£87,336
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 copyRightmove
Stylish Three-Bedroom Detached Home with Panoramic Countryside Views
Set within a sought-after modern cul-de-sac development in the village of Sherburn Hill, approximately 4.5 miles from Durham City, this impressive three-bedroom detached family home offers an exceptional blend of space, style, and scenery.
Occupying a prime position, the property enjoys stunning open views to the rear across rolling farmland, with bi-folding doors perfectly framing the landscape and extend…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice