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Year 5 disposal
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Weak
6.23% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£503/mo — heavily negative — needs monthly capital injection
- -3.0% 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.
- 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
−£503/mo
You top up £503/mo
Price
£720K
No local sold comps to compare
Return · IRR
-3.0%/yr
Loses money over 5 years
Cash to get in
£279K
Deposit + fees + refurb
Return before costs on price · Rent by the room 6.23%5-yr return on cash -5%Rent est. £3,258 (£3,207–£3,310)
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: £3,207–£3,310/mo · n=7
Financing
DepositYour cash in — the rest is the mortgage25% · £180,000
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 (£16,652–£31,084 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £540,000 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 £400K+
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£503
after mortgage, operating costs & tax
Rent in£3,258/mo gross
£3,133/mo collected · £125/mo lost to voids
Where it goes
£2,925Mortgage£710Costs
Outgoings exceed rent — you top up £503/mo
Mortgage£2,925
Costs£710
Management£326
Maintenance£67
Insurance£40
CapEx reserve£163
Voids + council tax£11
Ltd co. accounts£104
Tax—
Shortfall−£503
Returns
Return before costs on price5.43%
Cash return on cash-2.16%
Gross margin£2,422
Cash needed£278,903
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.07
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 | £39,096 | £8,525 | £35,100 | £0 | £0 | -£4,529 | -£4,529 |
| Year 2 | £40,269 | £8,781 | £35,100 | £0 | £0 | -£3,612 | -£8,141 |
| Year 3 | £41,477 | £9,044 | £35,100 | £0 | £0 | -£2,667 | -£10,808 |
| Year 4 | £42,721 | £9,315 | £35,100 | £0 | £0 | -£1,694 | -£12,502 |
| Year 5 | £44,003 | £9,595 | £35,100 | £0 | £0 | -£692 | -£13,194 |
Disposal gain (gross)-£32,038
CGT£0
Net Disposal proceeds£775,065
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
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 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 cohortSO31 6LJ · 5 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Southampton · 11.7 km
Reason
5-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
5-bed · 2-bath · 1621 sqft
£40k–£77k
£ per sqft
building cost only
£24–£48
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£11,347–£21,073
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£17,831–£34,041
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingMandatory
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Mandatory
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 history72d on marketno cuts yet
Strategy matrix
Rent it out wins — -£503/mo · level with Refurb & refinance
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| ⭐ Rent it out | 5.43% | -£503 | £278,903 | -4.7% | Low | Feasible |
| Housing-benefit rent | 2.41% | -£2,068 | £278,903 | -40.8% | Med | Feasible |
| Council lease | 2.41% | -£1,762 | £278,903 | -36.4% | Low | Feasible |
| Refurb & refinance | 5.43% | -£503 | £323,784 | -4.1% | Med | Feasible |
| Short-stay let / Airbnb | 0.23% | -£3,273 | £278,903 | -70.6% | High | Feasible |
| Buy, improve & sell | 0.00% | -£211 | £815,984 | 5% | Med | Feasible |
| Rent by the room | 6.23% | -£2,748 | £320,903 | -45.4% | — | Feasible |
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,446/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,446
- 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
Local lettings demandby strategyLive area data
Short-stay let5% occupancy
£92/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
-£1,428/mo cash flow vs Rent it out if converted to Rent by the room
4.00% Return before costs on price converted vs 5.43% as-is
Room mix (5 lettable rooms)
4× Double @ £737/mo1× En-suite @ £792/mo
≈ £3,740/mo gross room income
As-is Rent it out
Monthly profit-£371
Return before costs on price5.43%
Cash needed£191,898
If converted to Rent by the room
Monthly profit-£1,800
Return before costs on price4.00%
Cash needed£207,898
Δ vs Rent it out Monthly profit-£1,428
Show conversion detail
Conversion cost estimate
£3,000
Range: £2,000 – £5,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£76,775–£143,545full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£6,484–£11,347
- Replumb£4,863–£9,726
- Windows£16,210–£29,178
- Paint + decor£11,347–£21,073
- Flooring£17,831–£34,041
Based on 47 HMO comps within 1.0 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
Schools & catchment1 school nearby
Nearby schoolsOfsted-rated, nearest first1 of 5
- Not ratedPark Gate Primary SchoolPrimary · Community school · SO31 6LX
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£39,096
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£6,033
Exit costs
Projected sale price (5y · 2%/yr growth)£794,938
Capital gain (pre-CGT)£74,938
Sale costs (~2.5%)£19,873
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-£13,194
Rates as of Oct 2024
Acquisition costs
£278,903cash neededPurchase price£720,000
Deposit (25%)£180,000
Stamp duty+5% additional-property surcharge£62,000
Refurb£22,203
Legal + survey£2,900
Mortgage fees£11,800
Total cash neededdeposit + costs (loan covers the rest)£278,903
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Spacious five bedroom family home with three reception rooms, study and garage
This exceptional five-bedroom home offers luxurious modern living with a beautifully designed layout and an impressive specification throughout. Extending to approximately 1,621 sq ft of accommodation, plus garage, the property is perfectly suited to modern family life, combining generous living spaces with energy-efficient features and high-quality finishes.
The welcoming entrance hall provides…
Floor plans
Listing metarightmove · Charters
About this listing
72 days · RightmovePrice history
5-year price trend
Monthly profit
−£503
Cash needed
£279K
Return after costs
-2.16%
IRR
-2.98%
Listed 72d ago
Locks Road, Locks Heath, Southampton, Hampshire, SO31
house · 5 bed · 2 bath · 1,621 sqft
£720,000
est £3,258 · 5.43% gross
1 / 12
0/100
Marginal
6.23% Rent by the room strategy — market rent unverified, verify locally.
5.43% Return before costs — around the area average for this property type.
Monthly profit −£503/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£720K
Return before costs (best)
6.23%
Rent by the room
Bedrooms
5
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: £3,207–£3,310/mo · n=7
Financing
DepositYour cash in — the rest is the mortgage25% · £180,000
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 (£16,652–£31,084 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £540,000 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 £400K+
Maintenance (£/mo)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£503
after mortgage, operating costs & tax
Rent in£3,258/mo gross
£3,133/mo collected · £125/mo lost to voids
Where it goes
£2,925Mortgage£710Costs
Outgoings exceed rent — you top up £503/mo
Mortgage£2,925
Costs£710
Management£326
Maintenance£67
Insurance£40
CapEx reserve£163
Voids + council tax£11
Ltd co. accounts£104
Tax—
Shortfall−£503
Returns
Return before costs on price5.43%
Cash return on cash-2.16%
Gross margin£2,422
Cash needed£278,903
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.07
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,446/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,446
- 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 | £39,096 | £8,525 | £35,100 | £0 | £0 | -£4,529 | -£4,529 |
| Year 2 | £40,269 | £8,781 | £35,100 | £0 | £0 | -£3,612 | -£8,141 |
| Year 3 | £41,477 | £9,044 | £35,100 | £0 | £0 | -£2,667 | -£10,808 |
| Year 4 | £42,721 | £9,315 | £35,100 | £0 | £0 | -£1,694 | -£12,502 |
| Year 5 | £44,003 | £9,595 | £35,100 | £0 | £0 | -£692 | -£13,194 |
Rent by the room upside
What we verified
5007
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedMandatory
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 heuristicRent by the room / sharers
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£7,020
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£13,194
Acquisition costs
25% deposit£180,000
Stamp duty£62,000
Refurb£22,203
Legal + survey£2,900
Mortgage + broker£11,800
Cash needed£278,903
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
Spacious five bedroom family home with three reception rooms, study and garage
This exceptional five-bedroom home offers luxurious modern living with a beautifully designed layout and an impressive specification throughout. Extending to approximately 1,621 sq ft of accommodation, plus garage, the property is perfectly suited to modern family life, combining generous living spaces with energy-efficient features and high-quality finishes.
The welcoming entrance hall provides…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice