Glossary

ARV — After-Refurbishment Value. The estimated value of a property once refurbishment is complete. Used in BRRR and Flip calculations.

AST — Assured Shorthold Tenancy. The standard form of residential tenancy in England and Wales for private long-let properties.

Article 4. A direction by a local planning authority that removes permitted-development rights — typically requiring planning permission to create a new HMO or change use to short-let.

BMV — Below Market Value. The percentage discount of an asking price against the comparable sold median.

BRRR — Buy, Refurbish, Refinance, Rent. A strategy in which the investor pulls most of their capital back out after refurbishment, via refinancing against the post-refurb value.

BTL — Buy-to-Let. A residential property purchased and let to tenants for income.

Cash-on-Cash. Annual net cash flow divided by total cash invested.

Conveyancing. The legal process of transferring property ownership.

EICR. Electrical Installation Condition Report. Required every five years for rented residential property.

EPC. Energy Performance Certificate. A rating from A (best) to G (worst). Minimum E to let; moving to C by 2028.

Flip. Buying, refurbishing, and selling a property within a short window.

Freehold. Outright ownership of a property and the land it sits on.

GDV — Gross Development Value. The estimated end value of a property after refurbishment.

Gross yield. Annual rent divided by purchase price, before any costs.

HMO — House in Multiple Occupation. A property let room-by-room to three or more unrelated tenants. Subject to specific licensing and safety rules.

Land Registry. The government body recording property ownership and sale prices in England and Wales.

Leasehold. Ownership of a property for a fixed term granted by a freeholder.

LTV — Loan-to-Value. A mortgage as a percentage of the property's value.

Money Left In. The capital remaining in a BRRR deal after refinancing.

Net yield. Gross yield minus management, insurance, maintenance, voids, and ground rent.

PLO — Purchase Lease Option. A right (not obligation) to buy at a fixed future price while controlling the property.

PRS — Property Redress Scheme. A regulator that sourcing and estate agents must join.

R2R — Rent-to-Rent. Leasing a property from its owner and sub-letting it (with permission).

R2SA — Rent-to-Serviced-Accommodation. R2R operated as a short-let.

ROI — Return on Investment. Annual profit divided by total cash invested, often annualised over a one- or five-year horizon.

SA — Serviced Accommodation. A property short-let to guests on platforms such as Airbnb and Booking.com.

SDLT — Stamp Duty Land Tax. Tax paid on UK property purchases above a threshold; an additional 5% surcharge applies to additional residential properties.

Title Split. Separating a multi-unit property held on a single title into multiple individually saleable titles.

Voids. Periods when a property is between tenants and earning no rent. Modelled as a percentage of the year (5–8% typical).

Yield. A measure of income relative to price. See Gross yield and Net yield.