UK Property Investment Glossary

Plain-English definitions for every property, planning, tax and mortgage term you'll meet on PropertyAlert.uk — plus how PropertyAlert's own scoring works. Don't see a term? Ask Maxe, the assistant on every page.

A–Z Reference

90 terms across 8 categories — use Ctrl/Cmd+F to jump to a specific word, or browse by category on the left.

PropertyAlert Scoring Terms

Deal Score #: PropertyAlert's overall opportunity score, from 0 to 10. A weighted composite of Investment Score (50% weight), Motivation Score (30% weight) and Yield Score (20% weight) -- the single number that blends how cheap, how urgent, and how profitable a listing is.
Investment Score #: PropertyAlert's 1-10 score of how far below the local postcode-sector benchmark price a property is listed or sold. A higher score means a bigger discount to the area's typical price per square foot for that property type -- it does not assess condition, location quality or demand on its own.
Motivation Score #: PropertyAlert's 1-10 score of how urgently a seller appears to want to sell, based on keyword and listing signals such as price reductions, long days on market, probate, vacant possession and chain-free status.
Motivation Band #: The plain-English tier PropertyAlert maps a Motivation Score onto: Urgent (8-10), Active (6-7), Watch (4-5), Standard (1-3).
Yield Score #: PropertyAlert's 1-10 score mapped from a property's gross rental yield: Poor (under 4%) scores 1-2, Average (4-5.9%) scores 3-4, Good (6-7.9%) scores 5-7, Strong (8-9.9%) scores 8-9, and Exceptional (10%+) scores 10.
Postcode Sector #: The first part of a UK postcode plus one digit -- e.g. WD17 3 from WD17 3JT. PropertyAlert uses postcode sectors as its primary geographic unit for benchmark pricing, rental comparables and hotspot rankings.
BMV Hotspot #: A postcode sector ranked highly on PropertyAlert's BMV Hotspots page for the number and quality of below-market-value deals found there over the past month.
R2SA Hotspot #: A postcode sector ranked highly on PropertyAlert's R2SA Hotspots page for its estimated short-let cashflow potential -- nightly rate, occupancy, and Article 4 status all feed into the ranking.

Investment Strategies

BTL (Buy-to-Let) #: Buying residential property specifically to let out to a long-term tenant under an AST, for rental income and/or capital growth. The most common private-investor strategy in the UK.
SA (Serviced Accommodation) #: A property let on a short-term basis via platforms like Airbnb or Booking.com, rather than under a standard tenancy. Higher gross revenue than BTL but more active management and, in some areas, licensing restrictions.
R2SA (Rent to Serviced Accommodation) #: Renting a property from a landlord and subletting it as short-term serviced accommodation. The investor doesn't buy or mortgage anything -- they earn the spread between SA income and the rent they pay the landlord.
R2R (Rent to Rent) #: The same structure as R2SA, but the property is sublet room-by-room as an HMO rather than as serviced accommodation. No mortgage required.
HMO (House in Multiple Occupation) #: A property let to three or more tenants from separate households who share facilities such as a kitchen or bathroom. HMOs often need a licence from the local council -- see HMO Licensing.
Flip #: Buying a property below market value, adding value through refurbishment or planning gain, then reselling relatively quickly for profit. Capital-intensive and shorter-hold than BTL or SA.
BRRR (Buy, Refurbish, Rent, Refinance) #: A strategy that buys a property below value, refurbishes it to add value, lets it out, then refinances against the higher post-refurbishment value to pull the original capital back out -- recycling the deposit into the next deal.
AST (Assured Shorthold Tenancy) #: The standard UK residential tenancy agreement for long-term lets, typically running for an initial fixed term of 6 or 12 months.
Sourcing / Deal Sourcer #: Finding and packaging below-market property deals, typically for a fee, on behalf of investors who don't have time to search themselves.
Portfolio Landlord #: A landlord who owns four or more mortgaged buy-to-let properties. UK lenders apply extra underwriting rules (full portfolio review, tighter stress tests) to portfolio landlords.

Deal Signals & Seller Motivation

BMV (Below Market Value) #: A property listed or sold at a price below the typical price per square foot for its postcode sector and property type -- on PropertyAlert, specifically 15% or more below that local benchmark.
Motivated Seller #: A vendor with a strong reason to sell quickly -- job relocation, financial pressure, probate, divorce -- who is often willing to accept a lower price in exchange for a fast, certain sale.
Probate Sale #: A property being sold by the executor of a deceased owner's estate. Probate vendors often prioritise a clean, quick sale over squeezing out maximum price.
Chain-Free / No Onward Chain #: A sale where the seller has no dependent onward purchase, which reduces the risk the whole transaction collapses partway through.
Back on Market #: A listing that has reappeared after a previous sale on it fell through. The vendor is often keen to re-sell quickly having already been through one failed attempt.
Price Reduced #: A listing where the asking price has been cut at least once since it first appeared -- a reduction of 5-10% or more usually signals increasing motivation.
Days on Market (DOM) #: How long a listing has been for sale. Listings over 90 days have failed to sell at current pricing; over 180 days often signals real motivation to accept an offer.
Owner Sale #: A property sold directly by the owner or via an online/fixed-fee agent (e.g. Purplebricks) rather than a traditional high-street estate agent -- sellers here may have more room to negotiate since they're not paying a full commission.
Tenant in Situ #: An investment property being sold with a tenant already living in it under an existing tenancy, appealing to buyers who want rental income from day one.
Auction #: A sale method with a fixed auction date, where the winning bidder is immediately and legally committed to buy, usually with a tight 20-28 day completion deadline.
Guide Price #: An indicative minimum price shown for an auction property. The property will not sell below its confidential Reserve Price, which may be higher than the guide.
Reserve Price #: The confidential minimum an auction seller will accept. Bidding that stays below the reserve will not secure the property, even if it's the highest bid.
OIEO / OIRO (Offers in Excess Of / in the Region Of) #: Price qualifiers on a listing signalling the vendor's expectations relative to the guide price -- OIEO/OIRO typically means the vendor expects full asking price or above, and isn't looking for a discount.
EWS1 #: An External Wall System fire-safety assessment form required for some buildings with cladding. A poor (B1/B2) rating can restrict mortgage availability.
Green Energy Features #: Solar panels or heat pumps (air-source/ASHP or ground-source/GSHP) fitted to a property. Can lower running costs, help EPC rating, and appeal to eco-conscious tenants.
Repossession #: A property taken back and sold by a mortgage lender after the previous owner defaulted on their payments -- lenders typically want a quick sale.
Vacant Possession #: A property being sold with no tenant in place, so there's no need to manage around an existing tenancy -- though the vendor bears empty-property holding costs like council tax and utilities in the meantime.

Yield, Returns & Mortgage Finance

Gross Yield #: Annual rental income as a percentage of the purchase price, before any costs are deducted. A property at £150,000 achieving £750/month rent has a gross yield of 6.0% (£9,000 / £150,000).
Net Yield #: Gross yield minus running costs -- void periods, letting agent fees, maintenance, insurance, and any ground rent or service charge. A more realistic return figure than gross yield; typically 1.5-2.5 percentage points lower.
Cash-on-Cash Return #: Annual pre-tax cashflow divided by the actual cash invested (deposit plus buying costs), expressed as a percentage -- measures return on your own money, not the property's total value.
ROI (Return on Investment) #: Profit expressed as a percentage of the total amount invested.
IRR (Internal Rate of Return) #: The annualised return of an investment across its whole holding period, accounting for the timing of rental cashflows and the eventual sale or refinance -- a more complete measure than a single year's yield.
LTV (Loan to Value) #: The mortgage amount as a percentage of the property's value. Lower LTV (a bigger deposit relative to value) usually unlocks a cheaper interest rate.
RCR (Rental Coverage Ratio) #: The ratio mortgage lenders use to stress-test a buy-to-let application: monthly rent must typically cover 125-145% of the monthly mortgage payment, calculated at a stress-tested interest rate rather than the actual product rate.
Interest-Only Mortgage #: A mortgage where monthly payments cover only the interest, with the full capital balance repaid at the end of the term -- the standard structure for most UK buy-to-let mortgages.
Fixed-Rate Mortgage #: A mortgage where the interest rate is locked for a set period, commonly 2 or 5 years, giving payment certainty before reverting to a variable rate.
Buy-to-Let Mortgage #: A mortgage product for landlords, assessed primarily on the property's rental income (see RCR) rather than the borrower's personal salary alone.
Stress Test Rate #: The (typically higher than the actual product rate) interest rate lenders use to check a buy-to-let mortgage would still be affordable if rates rose -- often 5.5-6.5% even when the real deal rate is lower.
Deposit #: The portion of a property's price the buyer pays in cash upfront rather than borrowing via mortgage.
Gearing #: The proportion of an investment funded by debt (mortgage) rather than the investor's own cash. Higher gearing means more leverage -- bigger potential returns on your own capital, but bigger downside risk too.
Cashflow #: The net income left each month after all costs -- mortgage payment, management, maintenance, insurance -- have been paid.
Void Period #: The time a rental property sits empty between tenants, during which no rent is earned. Typically budgeted at 4-6 weeks a year in a net yield calculation.
Holding Costs #: Ongoing costs -- mortgage interest, council tax, utilities, insurance -- incurred while owning a property, especially while it's empty or being refurbished.
SPV (Special Purpose Vehicle) #: A limited company set up specifically to hold property investments, often used for tax treatment and mortgage-structuring reasons rather than buying personally.
GDV (Gross Development Value) #: The expected value of a development or refurbishment project once complete, used to appraise flips and conversions before committing to the cost of the works.
Exit Strategy #: The plan for how and when an investor will realise their return on a property -- sell, refinance and hold, or convert to a different letting strategy.

Legal & Planning

Article 4 Direction #: A planning restriction that removes permitted development rights in a specific area -- most commonly used by councils to require full planning permission before a home can be used as short-term serviced accommodation.
Permitted Development Rights #: The ability to make certain changes to a property -- like a loft conversion or change of use -- without needing full planning permission. Can be restricted by an Article 4 Direction.
Planning Application #: A formal request submitted to a local council for permission to build, convert, extend, or change the use of land or a building.
London 90-Night Limit #: A legal cap restricting whole-home short-term letting in Greater London to 90 nights per calendar year unless planning permission is obtained for more.
HMO / Selective Licensing #: Mandatory licences some local councils require before a property can legally be let as an HMO, or (under selective licensing) let at all in a designated area.
RICS Survey #: A structural survey by a RICS-qualified surveyor -- a Level 2 HomeBuyer Report or more thorough Level 3 Building Survey -- used to check a property's condition before committing to buy.
Title Investigation #: A solicitor's check of a property's legal ownership history and any restrictions registered against it, carried out before exchange of contracts -- not just before completion.
Restrictive Covenant #: A legal restriction on what can be done with a property or piece of land, registered against its title and binding on future owners.
Chancel Repair Liability #: A rare, historic liability that can make a property owner responsible for contributing to repairs of a local parish church chancel -- checked during title investigation.
Conveyancing #: The legal process of transferring property ownership from seller to buyer, typically handled by a solicitor or licensed conveyancer.
Exchange of Contracts #: The point at which a property sale becomes legally binding on both parties, ahead of completion.
Completion #: The legal point at which ownership of a property transfers to the buyer and the remaining balance of funds is paid.

Leasehold & Tax

Leasehold #: Ownership of a property for a fixed term (the lease), after which ownership reverts to the freeholder unless the lease is extended.
Freehold #: Outright ownership of a property and the land it stands on, with no lease term, ground rent, or need for extension.
Ground Rent #: An annual charge a leaseholder pays to the freeholder simply for holding the lease, separate from any service charge.
Service Charge #: An annual fee paid by a leaseholder towards the maintenance and upkeep of a building's shared areas and structure.
Short Lease #: A leasehold property with fewer than 85 years remaining on the lease. Creates negotiating leverage for buyers, since extension costs are coming.
Marriage Value #: The extra value released by extending a short lease, split (typically 50/50) between leaseholder and freeholder once the unexpired lease term drops below 80 years -- this can add tens of thousands to the cost of an extension.
SDLT (Stamp Duty Land Tax) #: The tax paid when buying property in England and Northern Ireland, charged in bands based on the purchase price.
SDLT Surcharge #: An extra Stamp Duty rate (currently 5%) applied on top of standard SDLT bands when buying an additional residential property, such as a buy-to-let or second home.
First-Time Buyer Relief #: A reduced Stamp Duty rate for buyers who have never owned property before, applying a nil-rate band up to a set purchase price.
Section 24 #: The UK tax rule restricting mortgage interest relief on rental income to a basic-rate tax credit rather than a full expense deduction -- it raises the effective tax bill for higher-rate-taxpayer landlords with mortgaged property.
Capital Gains Tax (CGT) #: UK tax on the profit made when you sell a property that isn't your main residence, after deducting the annual exempt amount and allowable costs.
Private Residence Relief #: Capital Gains Tax relief on the sale of a property that has been your main home for some or all of the time you owned it.
Annual Exempt Amount #: The amount of capital gain an individual can make in a tax year before Capital Gains Tax becomes due on the rest.

Property & Market Data

EPC (Energy Performance Certificate) #: An official rating, from A (most efficient) to G (least efficient), of a property's energy performance. Required by law to sell or let most properties.
MEES (Minimum Energy Efficiency Standards) #: The minimum EPC rating a rental property must legally meet before it can be let, with penalties for landlords who let a non-compliant property.
HPI (House Price Index) #: The official measure of how average house prices in an area are changing over time, used to gauge capital growth trends by postcode sector.
Land Registry #: The official UK government body that records property ownership and the actual prices properties sold for -- the ground truth PropertyAlert's benchmarks are built on, distinct from asking prices.
Comparable Sales (Comps) #: Recently sold properties of a similar type and size nearby, used to establish whether an asking price genuinely represents below-market value.
IMD (Index of Multiple Deprivation) #: An official UK government measure ranking small areas by relative deprivation across income, employment, health, education, crime and living environment.
£/sqft Benchmark #: The typical price per square foot for a given property type in a postcode sector, calculated from real sold prices -- the yardstick PropertyAlert compares every listing against to flag BMV opportunities.

Companies House & Distressed Sellers

Companies House #: The UK register of companies. PropertyAlert monitors it for financial-distress signals -- late accounts, dissolution proceedings, director resignations, CCJs -- on companies that own residential property.
CCJ (County Court Judgment) #: A court order confirming a debt is owed by an individual or company. Used by PropertyAlert as a financial-distress signal on property-owning companies.
CCOD (Compulsory Strike-Off / Dissolution) #: The process by which Companies House forcibly removes a company from the register, forcing a wind-down of its assets -- including any property it owns -- within a fixed timeline that cannot be extended.
Late Accounts #: Annual accounts overdue at Companies House -- a common early indicator that a property-owning company may be in financial difficulty.
Director Resignation #: A company director departing without a replacement being appointed -- can indicate management breakdown at a property-owning company.

Want to see these terms in action? Every score, signal and calculator mentioned above is live on the Deals Feed and explained step by step in the full Help Guide. Or just ask Maxe — the chat assistant on every page — to define any term for you.

Reminder: These definitions are general UK property-investment information, not legal, tax or financial advice. Rules (SDLT bands, Section 24, EPC/MEES thresholds, etc.) change — always confirm current figures with a qualified adviser or solicitor before acting.