Deal input
Enter your deal details — the analyser scores it across 8 metrics and returns an overall grade.
What each grade means — UK benchmarks 2025
| Grade | Gross yield | Net yield | Monthly cash flow | Cash-on-cash ROI | Meaning |
|---|---|---|---|---|---|
| A | 8%+ | 5.5%+ | £400+/mo | 9%+ | Excellent — strong across all metrics |
| B | 6.5–8% | 4–5.5% | £100–£400/mo | 5–9% | Good — viable with some trade-offs |
| C | 5–6.5% | 2.5–4% | £0–£100/mo | 2–5% | Marginal — works only with capital growth |
| D | <5% | <2.5% | Negative | <2% | Poor — renegotiate or pass |
How to use this tool effectively
Enter your deal's figures as accurately as possible — the quality of the output depends entirely on the quality of the inputs. A few tips:
Purchase price and market value: if you are buying at asking price, enter the same figure in both fields. If you believe the property is worth more than you are paying (buying below market value), enter the true market value separately — this generates an extra score on the BMV discount metric.
Purchase costs: include all upfront costs beyond the deposit — Stamp Duty Land Tax (or LBTT/LTT if in Scotland/Wales), solicitor fees, survey, and any refurbishment budget. Use the Stamp Duty Calculator to calculate your SDLT accurately. These costs form part of your "total cash invested" for the ROI calculation — understating them will overstate your returns.
Running costs: include management fees (typically 8–15% of rent), estimated maintenance (1% of property value per year is a common benchmark), insurance and any other property-specific recurring costs. Do not include the mortgage — enter that separately via the rate and type fields.
Occupancy rate: 92–95% is a reasonable assumption for most well-located properties with professional management. A lower rate reflects higher vacancy risk (new-build areas, seasonal lets, weak rental demand).
Rental demand quality: this is a subjective input based on your knowledge of the area. University cities and areas with major employers (hospitals, large offices) typically score highest. Suburban commuter areas are moderate. Weaker employment areas with limited demand score lowest — and this feeds into the final deal grade.
Understanding the 8 scoring metrics
The analyzer scores each of the following 8 metrics on a 0–10 scale against UK benchmark ranges. The overall score (0–100) is a weighted average, with cash flow (25%) and net yield (20%) carrying the most weight:
Gross yield (10%): annual gross rent as a percentage of purchase price. For standard single-let BTL, a B-grade requires 6.5%+; an A requires 8%+. HMO and serviced apartment targets are higher (12%+ for A-grade HMO). Gross yield alone is a poor predictor of actual returns.
Net yield (20%): gross rent minus management, maintenance and insurance costs, as a percentage of purchase price. This is your true income return before the mortgage. For standard BTL, a B-grade needs 4%+; A-grade needs 6%+.
Monthly cash flow (25%): what remains after all costs including the mortgage payment. Positive cash flow means the property pays for itself; negative means you are topping it up from your own funds. The single most important metric for most landlords.
Cash-on-cash ROI (20%): annual net cash divided by total cash invested (deposit plus all upfront costs). This is the most comparable measure across different-sized deals — it normalises for the amount of capital deployed.
BMV discount (5%): percentage below market value you are purchasing. Zero points for buying at or above market value. A score requires purchasing genuinely below independently assessed market value.
Leverage quality (5%): measured as equity percentage (100% minus LTV). Lenders typically require a minimum 25% deposit for BTL mortgages (75% LTV). Higher equity produces a higher leverage quality score.
Rental demand quality (10%): your assessment of tenant demand in the area, from poor (1) to excellent (5). University towns, hospital anchor areas and major city centres typically score highest.
Capital growth prospects (5%): your expected annual price appreciation. The analyser scores against UK long-run averages — 2.5%+ for B, 4%+ for A.
Frequently asked questions
What makes a good UK property investment deal?
How is the deal score calculated?
What yield do I need for positive cash flow at current rates?
What is BMV and does it matter?
How do the benchmarks change between property types?
Should I trust the deal grade for an investment decision?
Warning signs that a deal is too optimistic
The deal analyser is only as accurate as the figures you enter. Several common input patterns produce inflated scores that should prompt you to re-examine your assumptions before acting.
Occupancy rate above 95%: even well-managed, well-located properties typically experience some void periods between tenancies, maintenance closures, or tenant transitions. Entering 99–100% occupancy assumes a level of perfection that experienced landlords almost never sustain over time. Use 92–95% for an optimistic central case and stress-test at 85–90% to understand downside cash flow.
Maintenance costs below 0.5% of property value per year: this is only defensible for a brand-new property under a comprehensive developer warranty. For most properties — particularly those over ten years old — using less than 1% of value per year understates likely repair and upkeep costs and structurally overstates your cash flow and net yield scores.
Rent figures sourced from the vendor or selling agent: vendor-provided rent figures are an expectation, not a guarantee. Always verify achievable rent independently by checking live comparable lettings on Rightmove and Zoopla, and ideally by speaking to a local letting agent not connected to the sale. The deal grade changes materially if the achievable rent is 10% lower than projected — which is not an unusual outcome.
Capital growth assumptions above 5% per year: the tool uses compound growth, so entering 6–8% compounding over 5+ years produces equity projections significantly above long-run UK averages. Use 3% as a central case and test at 1–2% to stress-test the downside. A deal that only looks viable at 6% annual growth is a growth bet, not an income investment.
Limitations of this tool
The deal analyser models the key income and return metrics for a standard single-let buy-to-let, HMO, or serviced apartment. Several important factors that affect total financial outcome are outside its scope.
Income tax and mortgage interest relief: the tool shows pre-tax cash flow. Higher-rate taxpayers buying in personal names will pay significantly more income tax on rental profits than basic-rate taxpayers, and Section 24 restricts mortgage interest relief to the basic rate for individuals. These effects can turn a positive pre-tax cash flow negative after income tax. A property accountant should model your specific tax position before you commit to any deal.
Capital gains tax on disposal: the tool does not model the CGT liability when you eventually sell. For a higher-rate taxpayer, residential property CGT is currently charged at 24% on gains above the annual exempt amount — this materially affects your net total return on exit and may change the relative ranking of deals when assessed on a post-tax basis.
Refinancing and capital recycling: the Buy, Refurbish, Refinance, Rent (BRRR) strategy, bridging finance, and phased equity release all add costs and complexity not captured here. Use the BRRR Calculator for those scenarios.
Portfolio-level effects: lender stress-testing, portfolio mortgage affordability constraints, and the interaction of multiple properties on your tax position all require portfolio-level analysis that a single-deal tool cannot provide. A specialist buy-to-let mortgage broker is the right starting point for portfolio planning.
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