EVERYTHING
YOU'D ACTUALLY USE.

The industry loves acronyms. Here's a plain-English glossary of the terms we get asked about most often.

BTL

Buy-to-let. Residential property purchased with the intention of renting it out rather than living in it.

Gross yield

Annual rent divided by purchase price, expressed as a percentage. Doesn't account for costs.

Net yield

Annual rent minus all running costs, divided by purchase price. The honest yield number.

LTV

Loan-to-value. Mortgage amount as a percentage of property value. BTL mortgages typically max out at 75% LTV.

Section 24

2017 tax change restricting mortgage interest relief for personal landlords to a basic-rate tax credit. Doesn't apply to ltd companies.

SDLT

Stamp Duty Land Tax. The tax you pay when buying property in England/NI. Scotland uses LBTT, Wales uses LTT.

Off-plan

Buying a property before construction is complete, usually at a discount to the eventual market value.

EPC

Energy Performance Certificate. Legally required for rental properties. Minimum rating rising to C by 2030.

HMO

House in Multiple Occupation. A rental with three or more tenants from different households sharing facilities.

Ground rent

Annual payment from leaseholder to freeholder. Capped on new leases as of 2022.

Service charge

Annual cost for communal maintenance of leasehold buildings. Typically £800-£2,500/yr.

Yield compression

When property prices rise faster than rents, yields fall. The inverse is yield expansion.