Skip to main contenthow this is calculated →
Year 5 disposal
⊞ View all 15
22/ 100
Weak
7.22% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 7.22% return before costs — above-market
Why to be cautious
- Monthly profit −£213/mo — significantly negative — real recurring drain
- -2.4% 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
−£213/mo
You top up £213/mo
Price
£260K
Around comparable sold prices
Return · IRR
-2.4%/yr
Loses money over 5 years
Cash to get in
£103K
Deposit + fees + refurb
Return before costs on price 7.22%5-yr return on cash -6%Rent est. £1,564 (£1,375–£1,779)
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: £1,375–£1,779/mo · n=71
Financing
DepositYour cash in — the rest is the mortgage25% · £65,000
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 (£11,213–£20,930 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £195,000 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
-£213
after mortgage, operating costs & tax
Rent in£1,564/mo gross
£1,504/mo collected · £60/mo lost to voids
Where it goes
£1,056Mortgage£660Costs
Outgoings exceed rent — you top up £213/mo
Mortgage£1,056
Costs£660
Management£156
Maintenance£67
Insurance£28
CapEx reserve£78
Voids + council tax£8
Service charge + ground rent£219
Ltd co. accounts£104
Tax—
Shortfall−£213
Returns
Return before costs on price7.22%
Cash return on cash-2.47%
Gross margin£843
Cash needed£103,375
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.42
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 | £18,768 | £7,926 | £12,675 | £0 | £0 | -£1,833 | -£1,833 |
| Year 2 | £19,331 | £8,163 | £12,675 | £0 | £0 | -£1,507 | -£3,340 |
| Year 3 | £19,911 | £8,408 | £12,675 | £0 | £0 | -£1,172 | -£4,513 |
| Year 4 | £20,508 | £8,661 | £12,675 | £0 | £0 | -£827 | -£5,340 |
| Year 5 | £21,124 | £8,920 | £12,675 | £0 | £0 | -£472 | -£5,812 |
Disposal gain (gross)-£13,591
CGT£0
Net Disposal proceeds£279,884
What we verified
What we verified
23062 ok · 3 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdLeasehold
Tenure & planningLeasehold
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
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
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Verify
Lender impact
No EWS1 / floor info in description. Buildings > 11 m need EWS1 or PAS 9980 — confirm height + status with the agent before offering.
Verify with lender
A1/A2 = mortgageable · B1 = mortgageable with plan · B2 = remediation required
RICS EWS1 guidance →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 profileMixed demand
Tenant profilelikely cohortRG7 1GB · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Reading · 4 km
Reason
Mixed-demand area without a single dominant tenant cohort. Local lettings agent can clarify.
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
2-bed · 2-bath · 810 sqft
£25k–£49k
£ per sqft
building cost only
£31–£61
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£5,670–£10,530
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£8,910–£17,010
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history58d on marketno cuts yet
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£250,000 in 2019 → £260,000 asking
+4.0%in 7y
- 2019£250,000—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Short-stay let / Airbnb wins — +£1,611/mo · £1,824/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 | 7.22% | -£213 | £103,375 | -5.6% | Low | Feasible |
| Housing-benefit rent | 5.04% | -£667 | £103,375 | -32.2% | Med | Feasible |
| Council lease | 5.04% | -£546 | £103,375 | -29.9% | Low | Feasible |
| Refurb & refinance | 7.22% | -£213 | £122,355 | -4.7% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 27.25% | +£1,611 | £103,375 | 102.6% | High | Feasible |
| Buy, improve & sell | 0.00% | -£418 | £299,455 | 4% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
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 Reading · cap £1,092/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,092
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- Management:
- landlord pays agent (typical 10%)
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 let85% occupancy
£230/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
-£44/mo cash flow vs Rent it out if converted to Rent by the room
11.08% Return before costs on price converted vs 7.22% as-is
As-is Rent it out
Monthly profit+£41
Return before costs on price7.22%
Cash needed£76,898
If converted to Rent by the room
Monthly profit-£3
Return before costs on price11.08%
Cash needed£92,898
Δ vs Rent it out Monthly profit-£44
Show conversion detail
Cannot Rent by the room:Only 2 bed — too small for an HMO (3+ unrelated tenants from 2+ households) without major reconfiguration.
Conversion cost estimate
£50,000
Range: £42,500 – £60,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£64,980–£116,370full refurb + room split
What's in this cost
- Kitchen£9,900–£19,800
- 2 × bathroom£13,500–£24,750
- Rewire£4,725–£7,560
- Replumb£3,780–£6,615
- Windows£10,395–£17,955
- Paint + decor£9,450–£16,065
- Flooring£13,230–£23,625
Comparables
sold within 0.5 miWide · CV 20.6%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- Not ratedRiseley Green SchoolNot applicable · Other independent special school · RG7 1QF
- Not ratedThe Vine Christian SchoolNot applicable · Other independent school · RG7 1HF
- Not ratedGrazeley Church of England Primary SchoolPrimary · Academy converter · RG7 1JY
- Not ratedLambs Lane Primary SchoolPrimary · Academy converter · RG7 1JB
- Not ratedOakbank SchoolSecondary · Free schools · RG7 1ER
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£18,768
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£2,555
Exit costs
Projected sale price (5y · 2%/yr growth)£287,061
Capital gain (pre-CGT)£27,061
Sale costs (~2.5%)£7,177
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-£5,812
Rates as of Oct 2024
Acquisition costs
£103,375cash neededPurchase price£260,000
Deposit (25%)£65,000
Stamp duty+5% additional-property surcharge£16,000
Refurb£14,950
Legal + survey£2,525
Mortgage fees£4,900
Total cash neededdeposit + costs (loan covers the rest)£103,375
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
An excellent 2 double bedroom first floor apartment with 2 bathrooms, Open Plan Kitchen/Dining/Living area, Balcony and Allocated parking.
The apartment is located within easy reach of Reading Town Centre, The M4 Motorway, Local Amenities and the Berkshire Countryside.
This contemporary two-bedroom apartment offers spacious and well-designed accommodation throughout. Both bedrooms are comfortable doubles, with the principal bedroom featuring fitted wardrobes and a modern en…
Floor plans
Listing metarightmove · Parkers
About this listing
58 days · RightmovePrice history
5-year price trend
Monthly profit
−£213
Cash needed
£103K
Return after costs
-2.47%
IRR
-2.35%
Listed 58d ago
Hayes Drive, Three Mile Cross, Reading, Berkshire, RG7
flat · 2 bed · 2 bath
£260,000
est £1,564 · 7.22% gross
1 / 15
22/100
Marginal
7.22% — verify the rent + comps locally.
7.22% Return before costs — above-market
Price
£260K
at sold-comp median
Return before costs
7.22%
est rent £1,564/monot enough comparablesRange £1,375–£1,779/mo (Q1–Q3)
Bedrooms
2
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: £1,375–£1,779/mo · n=71
Financing
DepositYour cash in — the rest is the mortgage25% · £65,000
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 (£11,213–£20,930 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £195,000 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
-£213
after mortgage, operating costs & tax
Rent in£1,564/mo gross
£1,504/mo collected · £60/mo lost to voids
Where it goes
£1,056Mortgage£660Costs
Outgoings exceed rent — you top up £213/mo
Mortgage£1,056
Costs£660
Management£156
Maintenance£67
Insurance£28
CapEx reserve£78
Voids + council tax£8
Service charge + ground rent£219
Ltd co. accounts£104
Tax—
Shortfall−£213
Returns
Return before costs on price7.22%
Cash return on cash-2.47%
Gross margin£843
Cash needed£103,375
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.42
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 Reading · cap £1,092/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,092
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- Management:
- landlord pays agent (typical 10%)
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 | £18,768 | £7,926 | £12,675 | £0 | £0 | -£1,833 | -£1,833 |
| Year 2 | £19,331 | £8,163 | £12,675 | £0 | £0 | -£1,507 | -£3,340 |
| Year 3 | £19,911 | £8,408 | £12,675 | £0 | £0 | -£1,172 | -£4,513 |
| Year 4 | £20,508 | £8,661 | £12,675 | £0 | £0 | -£827 | -£5,340 |
| Year 5 | £21,124 | £8,920 | £12,675 | £0 | £0 | -£472 | -£5,812 |
Rent by the room upside
What we verified
4307
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureTenure typeLeasehold
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
Service chargeReduces net yield£2,376/yr
Ground rentDoubling clauses kill mortgageability£250/yr
Area▾
Crimepolice.uk · monthlyChecking…
SchoolsGIAS · OfstedChecking…
FloodEA Flood Map · England onlyChecking…
Investor profile▾
Tenant profileBeds + postcode heuristicFamily let
Rent by the room feasibilityMin 3 beds for C4 routeBelow threshold
Comparables
sold within 0.5 miWide · CV 20.6%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,535
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£5,812
Acquisition costs
25% deposit£65,000
Stamp duty£16,000
Refurb£14,950
Legal + survey£2,525
Mortgage + broker£4,900
Cash needed£103,375
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
An excellent 2 double bedroom first floor apartment with 2 bathrooms, Open Plan Kitchen/Dining/Living area, Balcony and Allocated parking.
The apartment is located within easy reach of Reading Town Centre, The M4 Motorway, Local Amenities and the Berkshire Countryside.
This contemporary two-bedroom apartment offers spacious and well-designed accommodation throughout. Both bedrooms are comfortable doubles, with the principal bedroom featuring fitted wardrobes and a modern en…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice