Buying or renting a home can sometimes feel like learning a completely new language.
From mortgages and conveyancing to APTs, deposits and EPCs, there are plenty of property terms that can leave you wondering what everyone is actually talking about.
This guide explains some of the most common terms you are likely to come across when buying or renting a home, using straightforward language rather than complicated jargon.
PART ONE: BUYING A HOME
Agreement in Principle (AIP)
An Agreement in Principle is an indication from a mortgage lender of how much they may be prepared to lend you.
It is not a guaranteed mortgage offer, but it can give you a useful idea of your potential budget before you start looking for a property.
You may also hear this called a Mortgage in Principle or Decision in Principle.
Asking Price
The asking price is the amount a property is being marketed for by the seller.
It does not necessarily mean this is the amount the seller will ultimately accept. Buyers can make offers above or below the asking price.
Base Rate
The Bank of England Base Rate is an interest rate set by the Bank of England.
It can influence the interest rates charged by lenders and therefore affect the cost of some mortgages.
Buildings Insurance
Buildings insurance covers the physical structure of a property against certain risks, such as fire, flooding or storm damage, depending on the policy.
If you have a mortgage, your lender will usually require suitable buildings insurance to be in place.
Chain
A property chain happens when several property transactions depend on one another.
For example, you might be buying from someone who is buying another property, whose seller is also buying elsewhere.
The more people involved in a chain, the more complicated the transaction can become.
Completion
Completion is the point at which the purchase legally takes place.
The remaining purchase money is transferred to the seller, ownership passes to you and you can collect the keys.
Conveyancing
Conveyancing is the legal process involved in buying or selling a property.
A solicitor or licensed conveyancer checks the legal ownership of the property, carries out searches, deals with contracts and helps make sure the purchase can legally proceed.
Deposit
When buying a property, the word "deposit" can mean the money you contribute towards the purchase price rather than borrowing from a mortgage lender.
For example, if you buy a £300,000 property with a £60,000 deposit, you would need a £240,000 mortgage.
The deposit is different from the deposit paid when renting a property.
Equity
Equity is the amount of a property that you effectively own.
For example, if your property is worth £300,000 and you have £200,000 remaining on your mortgage, you have £100,000 of equity, before taking account of selling costs or other debts secured against the property.
Exchange of Contracts
Exchange is one of the most important stages of buying a property.
Once contracts have been exchanged, the purchase becomes legally binding. Normally, neither the buyer nor seller can simply walk away without potentially facing financial consequences.
An accepted offer is not normally legally binding until exchange has taken place.
Freehold
Freehold means you own the property and the land it stands on outright, subject to any legal restrictions or rights affecting it.
Most traditional houses in England are freehold, although there are exceptions.
Fixtures and Fittings
Fixtures are items that are generally attached to the property, such as built-in wardrobes, radiators or bathroom suites.
Fittings generally refer to items that are not permanently attached, such as freestanding furniture or appliances.
The sales particulars or contract should make clear what is included in the sale.
Leasehold
Leasehold means you own the property for a particular period under the terms of a lease, but you do not own the land outright.
Leasehold is particularly common with flats.
A lease can include costs and obligations that you should understand before buying, such as service charges and ground rent.
Mortgage
A mortgage is a loan used to buy a property.
You normally contribute some of the purchase price yourself and borrow the remaining amount from a mortgage lender.
The mortgage is secured against the property, meaning the lender has rights over the property if you fail to keep up the required repayments.
Mortgage Valuation
A mortgage valuation is an assessment carried out for the mortgage lender to establish whether the property provides suitable security for the amount they are lending.
It is important to understand that a mortgage valuation is not the same thing as a full property survey.
Mortgage Term
The mortgage term is the length of time over which you have agreed to repay your mortgage.
For example, a mortgage could have a term of 25 or 30 years.
Offer
An offer is the amount a buyer proposes to pay for a property.
In England, an accepted offer is normally subject to contract and is not legally binding until contracts are exchanged.
Searches
Property searches are checks carried out during the conveyancing process.
They can provide information about matters such as planning, drainage, environmental issues and local authority information that could affect the property.
Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax is a tax that may be payable when buying a property in England.
The amount depends on factors including the purchase price, whether you are a first-time buyer and whether you already own another property.
Sold Subject to Contract (SSTC)
If a property is described as "Sold Subject to Contract", the seller has accepted an offer but contracts have not yet been exchanged.
The transaction is therefore not yet legally binding.
Survey
A property survey is an inspection designed to identify issues with the property.
There are different levels of survey, ranging from more basic inspections to more detailed assessments.
A survey is different from a mortgage valuation.
Title
The title is the legal evidence of ownership of a property.
Your conveyancer will check the title as part of the legal process.
Under Offer
Under Offer generally means an offer has been made on a property and accepted by the seller, but the sale has not yet exchanged contracts.
The property may therefore still be available depending on the circumstances and the seller's instructions.
PART TWO: RENTING A HOME
Assured Periodic Tenancy (APT)
An Assured Periodic Tenancy, usually shortened to APT, is now the standard type of private tenancy for many renters in England.
Since 1 May 2026, new private sector assured tenancies generally operate on a rolling basis rather than having a fixed end date.
Existing assured shorthold tenancies also became assured periodic tenancies from 1 May 2026.
In simple terms, the tenancy continues from one rental period to the next until it is properly ended.
Assured Shorthold Tenancy (AST)
An Assured Shorthold Tenancy, or AST, was the most common form of private tenancy in England before the Renters' Rights reforms came into effect.
From 1 May 2026, new ASTs can no longer be created for private sector assured tenancies in England, and existing assured shorthold tenancies moved to the new assured periodic tenancy system.
Deposit
A tenancy deposit is money paid by the tenant as security against certain things, such as unpaid rent or damage to the property.
For most private rentals in England, the deposit is capped at five weeks' rent where annual rent is below £50,000, or six weeks' rent where annual rent is £50,000 or more.
The deposit must be protected using a government-approved tenancy deposit protection scheme.
EPC
An Energy Performance Certificate, or EPC, gives a property an energy-efficiency rating.
Properties are generally rated from A, which is the most energy efficient, through to G.
An EPC can give prospective tenants an idea of how energy efficient a property is.
Guarantor
A guarantor is someone who agrees to meet certain financial responsibilities if the tenant fails to do so.
For example, a guarantor may agree to cover unpaid rent if the tenant does not pay it.
Holding Deposit
A holding deposit is a payment made to reserve a rental property while the landlord or letting agent carries out the necessary checks before the tenancy is agreed.
A holding deposit can generally be up to one week's rent.
Landlord
The landlord is the person or organisation that owns the property and rents it to a tenant.
The landlord remains responsible for meeting their legal obligations, even where a letting or property management agent is acting on their behalf.
Letting Agent
A letting agent acts on behalf of a landlord in connection with renting a property.
Depending on the service provided, an agent might advertise the property, arrange viewings, find tenants, carry out referencing, collect rent or manage the property.
Periodic Tenancy
A periodic tenancy is a tenancy that continues from one rental period to the next rather than having a fixed end date.
Under the current rules in England, assured periodic tenancies generally operate on a rolling basis, such as weekly or monthly.
Rent
Rent is the amount a tenant pays to occupy a property.
It is normally paid weekly or monthly, depending on the tenancy agreement.
Renters' Rights Act 2025
The Renters' Rights Act 2025 introduced major changes to private renting in England.
The first major changes came into effect on 1 May 2026.
Among other changes, the reforms ended assured shorthold tenancies, introduced assured periodic tenancies and ended Section 21 "no fault" evictions for private sector assured tenancies.
The important thing to remember is that the Renters' Rights Act is not simply about tenants having "more rights". It changes how landlords and tenants enter into, manage and end private tenancies.
Referencing
Referencing is the process of checking whether a prospective tenant is suitable for a rental property.
Checks can include things such as identity, income, previous rental history and credit information.
The exact checks will depend on the circumstances and the letting agent or landlord.
Right to Rent
Right to Rent checks are checks carried out to establish whether an adult is legally permitted to rent residential property in England.
Landlords and letting agents have responsibilities surrounding these checks.
Section 8 Notice
A Section 8 notice is a legal notice that can be used by a landlord to seek possession of a property where one or more legal grounds apply.
Following the Renters' Rights reforms, possession proceedings have changed significantly and landlords must use the appropriate legal grounds and procedures.
Section 21 Notice
A Section 21 notice was commonly known as a "no-fault" eviction notice.
It allowed landlords to seek possession of an assured shorthold tenancy without having to give a specific reason.
Section 21 possession notices were abolished for private sector assured tenancies from 1 May 2026 as part of the Renters' Rights reforms.
Tenant
The tenant is the person who rents and occupies the property under the terms of a tenancy.
Tenancy Agreement
A tenancy agreement sets out the terms of the arrangement between the landlord and tenant.
It can include information such as the rent, responsibilities of the parties and rules relating to the property.
Under the current rules, an assured periodic tenancy cannot have a fixed end date.
PART THREE: TERMS YOU'LL HEAR IN BOTH BUYING AND RENTING
Agent
An agent is a professional who acts on behalf of someone else.
In property, this might mean an estate agent acting for a seller or buyer, or a letting/property management agent acting for a landlord.
Completion Date
The completion date is the date on which a property purchase legally completes.
For a buyer, it is generally the day you become the legal owner and receive the keys.
Estate Agent
An estate agent helps people buy, sell and sometimes let property.
Their role can include marketing properties, arranging viewings, negotiating offers and helping coordinate the transaction.
Fixtures
Fixtures are generally items that are attached to the property and are intended to remain with it.
Examples can include radiators, fitted wardrobes and bathroom suites.
Freehold vs Leasehold
These are two different forms of property ownership.
Freehold generally means you own the property and land outright.
Leasehold generally means you own the property for the length of the lease but not the land itself.
Property Market
The property market refers to the buying, selling and renting of homes and other properties.
You will often hear people talk about whether the market is "rising", "falling", "slow" or "competitive".
Property Valuation
A property valuation is an assessment of what a property is worth.
The purpose and method of the valuation can vary depending on who is carrying it out and why.
An estate agent's market appraisal, for example, is different from a mortgage valuation.
Solicitor
A solicitor is a qualified legal professional who can deal with the legal aspects of a property transaction.
For a purchase, this commonly includes conveyancing, searches, contracts and the transfer of ownership.
Subject to Contract
"Subject to contract" means that an agreement has been reached in principle but the transaction is not yet legally binding.
This term is particularly important when buying and selling property.
Valuation
A valuation is an assessment of the likely value of a property.
However, not all valuations serve the same purpose. An estate agent's valuation for marketing purposes is different from a formal valuation carried out for a mortgage lender.
A QUICK PROPERTY JARGON CHECKLIST
If you're buying or renting for the first time, these are some of the terms worth understanding before you get started:
Buying:
Agreement in Principle
Asking Price
Chain
Completion
Conveyancing
Deposit
Equity
Exchange of Contracts
Freehold
Leasehold
Mortgage
Mortgage Valuation
Searches
Stamp Duty Land Tax
Survey
Sold Subject to Contract
Renting:
Assured Periodic Tenancy (APT)
Deposit
EPC
Guarantor
Holding Deposit
Landlord
Letting Agent
Rent
Referencing
Renters' Rights Act
Right to Rent
Section 8
Section 21
Tenant
Tenancy Agreement
Remember: Don't be afraid to ask
Property transactions involve a lot of terminology, but you should never feel that you are expected to understand everything immediately.
If an estate agent, mortgage adviser, solicitor, landlord or letting agent uses a term you don't understand, ask them to explain it.
A good property professional should be happy to explain what something means and, just as importantly, what it means for you.
This guide is intended as a straightforward introduction to common property terminology. Property law and regulations can change, and individual circumstances can affect how the rules apply, so professional legal or financial advice should be sought where appropriate.
Contact Hunters Stanstead Abbotts today
Your local property experts; our advice is free but our knowledge is priceless.
"I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country.”
No comments:
Post a Comment