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Year 5 disposal
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49/ 100
Caution
10.71% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 7.95% return before costs — above-market
- 10.7% Rent by the room return before costs (net 5.44% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- 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
+£25/mo
Barely breaks even each month
Price vs market
Above comparable sales
+58% vs 12 sold
Return · IRR
0.8%/yr
Modest annualised return
Cash to get in
£87K
Deposit + fees + refurb
Price £175KReturn before costs on price · Rent by the room 10.71%5-yr return on cash 7%Rent est. £1,159 (£950–£1,414)
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: £950–£1,414/mo · n=50
Financing
DepositYour cash in — the rest is the mortgage25% · £43,750
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 (£21,161–£39,500 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £131,250 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 sub-£200K
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
+£25
after mortgage, operating costs & tax
Rent in£1,159/mo gross
£1,114/mo collected · £45/mo lost to voids
Where it goes
£711Mortgage£372Costs
£25/mo left as profit · 2% of rent kept
Mortgage£711
Costs£372
Management£116
Maintenance£67
Insurance£20
CapEx reserve£58
Voids + council tax£7
Ltd co. accounts£104
Tax£6
Profit+£25
Returns
Return before costs on price7.95%
Cash return on cash0.35%
Gross margin£742
Cash needed£87,039
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.57
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 | £13,908 | £4,467 | £8,531 | £0 | £173 | £737 | £737 |
| Year 2 | £14,325 | £4,601 | £8,531 | £0 | £227 | £966 | £1,703 |
| Year 3 | £14,755 | £4,739 | £8,531 | £0 | £282 | £1,203 | £2,906 |
| Year 4 | £15,198 | £4,881 | £8,531 | £0 | £339 | £1,447 | £4,353 |
| Year 5 | £15,654 | £5,027 | £8,531 | £0 | £398 | £1,697 | £6,050 |
Disposal gain (gross)-£26,280
CGT£0
Net Disposal proceeds£188,384
What we verified
What we verified
51065 ok · 1 caution · 0 fail · 6 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
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 cohortST5 1NW · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
University of Manchester · 51.2 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 · 980 sqft
£25k–£49k
£ per sqft
building cost only
£25–£50
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£6,860–£12,740
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,780–£20,580
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 history109d on marketno cuts yet
Strategy matrix
Rent by the room wins — +£634/mo · £609/mo ahead of Rent it out (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 | 7.95% | +£25 | £87,039 | 7.0% | Low | Feasible |
| Housing-benefit rent | 4.07% | -£470 | £87,039 | -28.0% | Med | Feasible |
| Council lease | 0.00% | -£902 | £87,039 | -63.0% | Low | Feasible |
| Refurb & refinance | 7.95% | +£25 | £107,075 | 5.7% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£191 | £225,950 | -6% | Med | Feasible |
| ⭐ Rent by the room | 6.85% * | +£634 | £85,250 | — | — | 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 Staffordshire North · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Staffordshire North
- LHA monthly cap:
- £593
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
+£223/mo cash flow vs Rent it out if converted to Rent by the room
16.46% Return before costs on price converted vs 7.95% as-is
£175k → 5-bed HMO @ ~£443/room: £2,152 pcm gross, ~£1,236 pcm net (6.8% net on £216k all-in incl. ~£29k works); GDV ~£174k → refinance releases ~£-0k (~£86k left in)
medium confidence
Unlocks ~£12,496/yr extra rent
3 → 5 lettable rooms · ~7.7% 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 104 m²; convert 2 spare room(s) to bedrooms, keeping one reception as the lounge → up to 5 lettable rooms (0 double, 1 single) (incl. the garage — convertible to a bedroom or the communal area); sized to Newcastle-under-Lyme adopted standard (6.51/11 m²; Newcastle-under-Lyme BC HMO standards - shared houses (council web pages, undated)); 1 room size(s) not printed on the plan — counted but unverified vs the standard; adds ~£1,041/mo; 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.
3 → 5 bed HMO+2 singles6.85% net on cost8.93% cash-on-cashuplift 5.48% → 7.65%
💷 Refinance could release ~-£405
HMO licence
Sized to Newcastle-under-Lyme'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)
2× Double @ £561/mo1× Single @ £440/mo
≈ £1,562/mo gross room income
As-is Rent it out
Monthly profit+£44
Return before costs on price7.95%
Cash needed£55,648
If converted to Rent by the room
Monthly profit+£267
Return before costs on price16.46%
Cash needed£71,648
Δ vs Rent it out Monthly profit+£223
+2 rooms (5 total)
Monthly profit+£386
Return before costs on price17.85%
Cash needed£91,648
Extra rent+£1,041/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£48,640–£91,430full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£3,920–£6,860
- Replumb£2,940–£5,880
- Windows£9,800–£17,640
- Paint + decor£6,860–£12,740
- Flooring£10,780–£20,580
Based on 3998 HMO comps within 3.6 km
Comparables
sold within 0.5 miWide · CV 50.2%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score90 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodHassell Primary SchoolPrimary · Community school · ST5 1LF
- Not ratedDemetae AcademyNot applicable · Other independent school · ST5 1JF
- Not ratedLyme Brook Independent SchoolNot applicable · Other independent special school · ST5 1JB
- Not ratedNewcastle-under-Lyme SchoolNot applicable · Other independent school · ST5 1DB
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£13,908
Section 24 credit£0
Annual tax due£173
Post-tax Monthly profit annual£202
Exit costs
Projected sale price (5y · 2%/yr growth)£193,214
Capital gain (pre-CGT)£18,214
Sale costs (~2.5%)£4,830
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£6,050
Rates as of Oct 2024
Acquisition costs
£87,039cash neededPurchase price£175,000
Deposit (25%)£43,750
Stamp duty+5% additional-property surcharge£9,750
Refurb£28,214
Legal + survey£1,700
Mortgage fees£3,625
Total cash neededdeposit + costs (loan covers the rest)£87,039
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
This three bedroom semi detached house presents an excellent opportunity for buyers seeking a property with great potential, ideally located within walking distance of the Royal Stoke Hospital and offering easy access to Newcastle town centre.
The home features two generously sized first floor bedrooms as well as two versatile ground floor rooms, providing flexible living and entertaining spaces that can be adapted to suit a variety of needs.
The accommodation is in need of…
Floor plans
Nearby active comparables5 deals
Comparable rentals
ST5 · same beds + typeNo nearby rentals matched on postcode prefix + bedrooms + property type.
Listing metarightmove · Critchlow Estate Agents
About this listing
109 days · RightmovePrice history
5-year price trend
Monthly profit
+£25
Cash needed
£87K
Return after costs
0.35%
IRR
0.83%
Listed 109d ago
Parkstone Avenue, Newcastle, ST5
bungalow · 3 bed · 1 bath · 980 sqft
£175,000
est £1,159 · 7.95% gross
EPC D
1 / 20
49/100
Caution
10.71% Rent by the room strategy — market rent unverified, verify locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
7.95% Return before costs — above-market
10.7% Rent by the room Return before costs — conversion play
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£175K
58% above sold comps
Return before costs (best)
10.71%
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: £950–£1,414/mo · n=50
Financing
DepositYour cash in — the rest is the mortgage25% · £43,750
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 (£21,161–£39,500 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £131,250 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 sub-£200K
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
+£25
after mortgage, operating costs & tax
Rent in£1,159/mo gross
£1,114/mo collected · £45/mo lost to voids
Where it goes
£711Mortgage£372Costs
£25/mo left as profit · 2% of rent kept
Mortgage£711
Costs£372
Management£116
Maintenance£67
Insurance£20
CapEx reserve£58
Voids + council tax£7
Ltd co. accounts£104
Tax£6
Profit+£25
Returns
Return before costs on price7.95%
Cash return on cash0.35%
Gross margin£742
Cash needed£87,039
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.57
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Staffordshire North · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Staffordshire North
- LHA monthly cap:
- £593
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 | £13,908 | £4,467 | £8,531 | £0 | £173 | £737 | £737 |
| Year 2 | £14,325 | £4,601 | £8,531 | £0 | £227 | £966 | £1,703 |
| Year 3 | £14,755 | £4,739 | £8,531 | £0 | £282 | £1,203 | £2,906 |
| Year 4 | £15,198 | £4,881 | £8,531 | £0 | £339 | £1,447 | £4,353 |
| Year 5 | £15,654 | £5,027 | £8,531 | £0 | £398 | £1,697 | £6,050 |
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 miWide · CV 50.2%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,706
Annual rental tax£71
CGT yr 5£0 · company level
5y net total£6,050
Acquisition costs
25% deposit£43,750
Stamp duty£9,750
Refurb£28,214
Legal + survey£1,700
Mortgage + broker£3,625
Cash needed£87,039
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
This three bedroom semi detached house presents an excellent opportunity for buyers seeking a property with great potential, ideally located within walking distance of the Royal Stoke Hospital and offering easy access to Newcastle town centre.
The home features two generously sized first floor bedrooms as well as two versatile ground floor rooms, providing flexible living and entertaining spaces that can be adapted to suit a variety of needs.
The accommodation is in need of…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice