Property Investment
Glossary & Terms

Properties available for a price lower than their actual market value. Investors seek these for instant equity preservation and capital growth.

A short-term loan used to 'bridge' the gap between buying a property and securing long-term finance or selling it.

The increase in the value of a property over time, driven by market demand and regional infrastructure growth.

A strategy or tool focused on rapidly increasing an investor's capital base, often through high-yield or value-add projects.

The net amount of cash moving in and out of an investment. Positive cash flow means the property generates profit after all expenses.

A measurement of the cash flow available to pay current debt obligations, a critical metric for enterprise lenders.

A certificate showing the energy efficiency of a property, rated from A (most efficient) to G (least efficient).

Outright ownership of the property and the land on which it stands; the ultimate form of sovereign land ownership.

The annual rental income generated by a property, expressed as a percentage of the property value, before expenses.

A property rented out by at least 3 people who are not from 1 'household' but share facilities like the bathroom and kitchen.

Ownership of the property for a fixed period of time (via a lease) but not the land it stands on.

The ratio of a loan to the value of the asset purchased. A £75k mortgage on a £100k house is 75% LTV.

The annual rental income minus all costs (mortgage, maintenance, insurance, etc.), expressed as a percentage of total capital.

Purchasing a property before it has been built or completed, often at a significant discount.

A performance measure used to evaluate investment efficiency, calculated by dividing the return by the total cost.

A tax paid if you buy a property or land over a certain price in England and Northern Ireland.

A legal notice used by landlords in England to evict tenants without giving a reason (often called a 'no-fault' eviction).

Tax changes restricting the amount of income tax relief landlords can get on residential property finance costs.

Fully furnished accommodation available for short-term let, providing hotel-like amenities and premium yields.

The income return on an investment, such as the interest or dividends received from holding a particular asset.