Run the deal before you run to the viewing.

Headline yields flatter every deal. This starts with the gross number and takes off stamp duty, mortgage costs, voids, maintenance and management until what's left is the truth: monthly cash flow, return on the cash you put in, and how long until you break even. The mortgage rate defaults to the latest Bank of England 5-year fixed average (4.69%), so adjust it to your own offer.

Purchase price£250,000

Deposit25%

Mortgage rate4.69%

Term25 yrs

Refurbishment budget£0

Expected monthly rent£1,200

Annual service charge / ground rent£0

Maintenance allowance8% of rent

Management fee10% of rent

Void allowance2 wks/yr

Buyer type (stamp duty)Mortgage type

Monthly cash flow

£213

Return on cash

3.3%

Cash required

£77,500

deposit + stamp duty + refurb

Break even

30.3 yrs

cash-flow payback; excludes equity built by repayment

The yield, honestly

Watch the headline number turn into what actually lands in your account.

Gross yield 5.8%

After voids

After maintenance, management, service charge

After mortgage: 1.0% net on price

Where the money goes

Loan£187,500

Deposit£62,500

Stamp duty (SDLT)£15,000

Mortgage (interest only)£733/mo

Rent collected (after voids)£13,846/yr

Maintenance + management + service charge£2,492/yr

Mortgage cost£8,794/yr

Net income£2,560/yr

Saved scenarios

Keep separate offer, rate and refurbishment cases without losing the assumptions.

Illustrative only, not financial or tax advice. Stamp duty is calculated for England and Northern Ireland residential rates (2025/26, including the 5% additional-property surcharge and first-time buyer relief); Scotland and Wales use different schemes. Mortgage figures are simple projections, not offers. Check any deal with a broker and your own numbers. Want the market side? Search the postcode for sold evidence and market strength.