Landlord Glossary

For UK landlords, property investors, and short-let operators

Last reviewed: April 2026

Here is what the jargon means, in one line each. Then you can get back to managing your property.

Additional Dwelling Supplement (ADS) - Scotland''s equivalent of the SDLT surcharge on additional properties. Currently 8% on the total purchase price.

Allowable expenses - Costs you can deduct from rental income before calculating tax. Includes repairs, agent fees, insurance, and mortgage interest (as a 20% tax credit under Section 24).

Article 4 direction - A council restriction removing permitted development rights, typically preventing conversion from C3 (dwelling) to C4 (small HMO) without planning permission.

AST (Assured Shorthold Tenancy) - The standard residential tenancy in England since 1997. Gives the landlord a right to possession after the fixed term expires (via Section 21 until May 2026).

ATED (Annual Tax on Enveloped Dwellings) - Annual charge on residential properties valued over GBP 500,000 held in a company, partnership, or collective investment scheme. Reliefs exist for genuine letting businesses.

BADR (Business Asset Disposal Relief) - Formerly Entrepreneurs'' Relief. CGT at a reduced rate (rising to 14% in 2025/26, then 18% in 2026/27) on qualifying business disposals. No longer available for FHL after April 2025.

BMV (Below Market Value) - A property purchased for less than its open market value. Often sourced through distressed sales, auctions, or direct-to-vendor deals.

BRRR (Buy, Refurbish, Refinance, Rent) - Investment strategy where you buy a property below value, refurbish it, refinance to pull capital out, and rent it. Goal is to recycle your deposit.

C3 (Use Class C3) - Planning classification for a dwelling house occupied by a single household. Converting to C4 (HMO) may require planning permission in Article 4 areas.

C4 (Use Class C4) - Planning classification for a small HMO (3-6 unrelated people sharing). Larger HMOs fall into sui generis and always need planning permission.

Capital allowances - Tax deductions for spending on qualifying assets. Available on commercial property (structures and buildings allowance at 3%/year) but NOT on residential property.

CP12 - The gas safety certificate issued after an annual gas safety inspection. Required every 12 months for all rented properties with gas appliances.

DSR (Debt Service Ratio) - The ratio of rental income to mortgage payments. Lenders typically require 125-145% ICR at a stress-test rate of 5.5%.

EICR (Electrical Installation Condition Report) - Required every 5 years for all privately rented properties in England. Identifies any electrical safety issues that need remedial work.

EPC (Energy Performance Certificate) - Energy efficiency rating from A (best) to G (worst). Currently minimum E required for lettings; C required from 2030.

FHL (Furnished Holiday Letting) - A tax regime providing favourable treatment for qualifying holiday lets. Abolished from 6 April 2025. Landlords lost BADR, capital allowances, pension contributions, and full mortgage interest deductibility.

Ground 8 - Mandatory possession ground under Section 8 where the tenant owes at least 2 months'' rent at the date of the notice AND the date of the hearing.

HHSRS (Housing Health and Safety Rating System) - 29 hazard categories used by councils to assess housing conditions. Forms the basis of Section 9A fitness for human habitation enforcement.

ICR (Interest Coverage Ratio) - The ratio of rental income to mortgage interest payments. Lenders typically require 125-145% at a stress-test rate.

Section 24 - Finance Act 2015 provision that restricts mortgage interest deductibility for individual landlords to a basic rate (20%) tax credit. Does not affect limited company landlords.

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