If you've seen our recent social post, you'll know we filter every property through a short set of tests before we'd consider it worth an investor's time. Twenty-plus years of working in County Durham has sharpened those tests considerably. This article walks through each one — not as a sales pitch, but as a practical framework you can apply to any opportunity you're evaluating, whether it comes from us or anyone else.
Test 1: Is the Property Actually Lettable?
The first question isn't about yield — it's about the asset itself. A property that needs structural work, sits in persistent disrepair, or doesn't suit the local tenant profile is a problem before it's an investment.
We look for homes that are either already in good condition or can be brought to a lettable standard through a managed refurbishment. That means fit-for-purpose layout, appropriate size for the likely tenant household, and no defects that will resurface as maintenance costs within the first year.
The condition of the property on day one shapes every number that follows.
Test 2: Micro-Location, Not Just a Postcode
"County Durham" covers a wide geography. A terraced house on a well-connected street with local amenities, good transport links, and low void history is a fundamentally different proposition from a similar-looking property two streets away with none of those things.
We've been selecting specific streets in specific towns since 2004. That granularity matters. Broad area data — ONS figures, regional averages — gives you a starting point, not a decision. Walk the street. Check the immediate environment. Ask who actually rents there and why.
Test 3: Evidenced Tenant Demand and a Realistic Rent
An achievable rent is not the highest rent listed on a portal. It's what comparable properties in that specific location are actually letting for, consistently, without extended void periods.
ONS data for County Durham (last updated 15 September 2026, reflecting August 2026 figures) puts average private rent at £650 per month. That's a useful reference point — but individual streets, property sizes, and conditions vary significantly. Check the ONS County Durham housing data for current context, and treat the figure as a benchmark rather than a target.
The question to ask: is there a queue of tenants for this type of property in this location, or are landlords competing to fill it?
Test 4: Gross Yield, Calculated Honestly
Gross yield is a useful screening tool. Here's the formula:
Gross Yield (%) = (Annual Rent ÷ Total Acquisition Cost) × 100
Total acquisition cost means purchase price plus stamp duty, legal fees, and refurbishment — not just the purchase price. Using only the purchase price inflates the figure.
ONS data puts County Durham's average house price at £140,000 (July 2026 figures). At that price, a £650 monthly rent produces a gross yield of around 5.6% before any costs. Some properties — particularly those requiring refurbishment — can produce higher indicative yields. ReadyLet's selected properties have shown indicative gross yields of 9–11% on individual property packs. Those are figures for specific properties under specific assumptions, not guaranteed returns across a portfolio. Check every pack, and check the rent and cost assumptions behind the number.
Gross yield is a filter, not a profit figure. It doesn't account for voids, maintenance, management fees, insurance, compliance costs, or tax.
Test 5: The Full Net-Cost and Risk Check
This is where most investors under-prepare. A property that screens well on gross yield can still underperform if the net picture is ignored.
Work through every cost: purchase costs (including stamp duty at the higher rate for additional dwellings), refurbishment, ongoing maintenance, landlord insurance, letting agent or management fees, and a realistic void allowance. Then add a contingency — because something unexpected always arrives.
Tenancy law and landlord compliance obligations are non-negotiable costs too, not optional extras. GOV.UK's Renting out your property guidance covers the legal baseline. Read it, or take advice from someone who has.
"Numbers make sense from day one" means the investment works at a realistic rent, with normal voids, without relying on capital growth that may or may not materialise.
Optimistic occupancy assumptions and speculative price appreciation are not a business case.
A Note on ReadyLet's Approach
We're a family-run company. We buy, refurbish, and sell properties in County Durham — areas we know well and have been working in since 2004. We manage the refurbishment, provide six months of snagging cover, source tenants, and can introduce investors to ongoing management. We don't promise outcomes we can't control.
Which of these five tests do you find hardest to assess from the outside? We're happy to walk through the numbers on specific properties — no pressure, just a straight conversation.
Sources
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ONS Private Rental Market Statistics and House Price Index, County Durham — last updated 15 September 2026: ons.gov.uk
Risk disclaimer: Property investment carries risk. Capital is at risk and returns are not guaranteed. Rental income, occupancy levels, and property values can fall as well as rise. This article is for general information only and does not constitute financial, tax, or legal advice. Seek independent professional advice before making any investment decision.
