Landlord glossary

Additional dwelling supplement (ADS)

Scotland’s additional tax on qualifying purchases of additional residential property. The rate increased to 8% for contracts entered into on or after 5 December 2024. Check transaction dates, ownership rules and exceptions.

Revenue Scotland: ADS rate changeSource checked 9 September 2026

ARLA (Association of Residential Letting Agents)

A professional body for letting agents in the UK, now part of Propertymark. ARLA-qualified agents must hold client money protection insurance and follow a code of practice.

Arrears

Rent that is overdue and unpaid. Any arrears may support discretionary possession grounds, while post-1 May 2026 mandatory Ground 8 generally requires at least 3 months' rent (or 13 weeks for weekly or fortnightly rent) at notice and hearing.

Article 4 direction

A local planning order that removes permitted development rights in a specific area. Common in conservation areas and increasingly used to restrict HMO conversions without full planning permission.

AST (Assured Shorthold Tenancy)

A historic form of assured tenancy used in England before 1 May 2026. Most existing ASTs became assured periodic tenancies on that date; separate rules continue to apply in Wales.

BACS

Bankers' Automated Clearing Services — the UK system for bank-to-bank transfers. Landlord rent payments, deposit returns, and partner commission payouts typically use BACS.

Beneficial owner

The person who benefits from a property even if the legal title is held in a different name — for example, a spouse, trust, or nominee. Relevant for tax, anti-money-laundering checks, and Land Registry requirements.

Break clause

A contractual provision allowing a fixed-term arrangement to end early under specified conditions. Do not apply an old AST break clause to England’s assured periodic regime without checking current tenancy rules.

Bridging finance

Short-term borrowing often used between a purchase and longer-term funding. Compare total interest, fees, security and repayment plans with an appropriate adviser; speed is not guaranteed.

Building regulations

National standards that all building work must comply with, covering structure, fire safety, insulation, ventilation, drainage, and electrical safety. Relevant for conversions, extensions, and major refurbishments.

Buy-to-let (BTL)

Property acquired to rent out. Mortgage terms, deposit requirements and affordability checks depend on the lender and borrower; a typical deposit figure is not a lending offer.

Capital allowances

Tax relief on qualifying capital expenditure, subject to the asset and business rules. Do not assume ordinary residential letting qualifies or rely on the former furnished-holiday-letting regime for current purchases.

HMRC: FHL regime abolitionSource checked 9 September 2026

Capital Gains Tax (CGT)

Tax paid on the profit when you sell a property that isn't your main home. The rate is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers on residential property, with a £3,000 annual exemption.

Chain

A sequence of linked property transactions where each sale depends on the next. Being 'chain-free' (no onward purchase) makes your offer more attractive to sellers.

Chattels

Movable items in a property that are not fixtures (e.g. curtains, free-standing appliances, furniture). Important for inventory purposes and deposit deduction disputes.

CO alarm

A carbon monoxide alarm. England’s rules require one in a room used wholly or partly as living accommodation containing a fixed combustion appliance, except a gas cooker. Requirements differ across the UK.

GOV.UK: smoke and CO alarm guidanceSource checked 9 September 2026

Commonhold

A form of property ownership for flats where residents collectively own the common parts (corridors, roof, grounds) through a commonhold association. Rare in practice — most UK flats are leasehold.

Community Infrastructure Levy (CIL)

A charge that local authorities can set on new development to fund local infrastructure. May apply to commercial-to-residential conversions.

Compliance score

A summary of recorded readiness, not a certificate that legal requirements are met. Tendmere’s indicators depend on applicability and available evidence; missing, stale or unverified records must remain visible. A percentage alone cannot establish legal compliance.

Consent to let

Permission from your mortgage lender to rent out a property that has a residential (not buy-to-let) mortgage. Required when you need to let temporarily — e.g. due to relocation. Usually time-limited and may carry a fee or rate increase.

Consumer unit

The modern term for a fuse box. Contains circuit breakers and RCDs (residual current devices) that protect electrical circuits. Inspected as part of an EICR.

Controlled waste

Household, commercial, or industrial waste that must be disposed of by a licensed carrier. Landlords are responsible for ensuring waste from void properties or clearances is disposed of legally.

Corporation Tax

Tax on company profits. The main rate is 25%; qualifying small profits may be taxed at 19%, with marginal relief between relevant thresholds. Associated companies, short accounting periods and eligibility affect the calculation.

HMRC: Corporation Tax ratesSource checked 9 September 2026

Covenant

A legal obligation attached to a property's title. Restrictive covenants may prohibit certain uses (e.g. no business use, no subdivision). Check title deeds before converting or changing use.

Damp proof course (DPC)

A barrier built into walls (usually a strip of plastic or bitumen) to prevent moisture rising from the ground. A failed or bridged DPC causes rising damp — a common issue in older rental properties.

Decent Homes Standard

A government standard requiring homes to be free from serious hazards, in reasonable repair, with reasonably modern facilities and adequate thermal comfort. It currently applies to social housing; extension to private rentals is part of later Renters' Rights Act implementation and subject to consultation timing.

Deposit protection

Protection of an in-scope tenancy deposit with an approved scheme. England and Wales commonly have a 30-day deadline from receipt for protection and required information; other nations and tenancy types have different rules.

Dilapidations

Disrepair or damage considered against tenancy obligations and condition evidence. Deposit deductions are not automatic: fair wear and tear, responsibility, reasonable costs and the dispute process matter.

Direct debit

A payment instruction that allows the payee (landlord or agent) to collect money from the tenant's bank account. Unlike standing orders, the payee controls the collection. Common in agency-managed properties.

Disbursements

Costs paid on your behalf by a solicitor during a property purchase — Land Registry fees, search fees, stamp duty. Listed separately from the solicitor's own fees on their invoice.

Disrepair claim

A legal claim by a tenant against a landlord for failing to maintain the property in good repair, as required under Section 11 of the Landlord and Tenant Act 1985. Can result in compensation and court-ordered repairs.

DPS (Deposit Protection Service)

One of three government-approved tenancy deposit protection schemes in England and Wales. Offers both custodial (free, DPS holds the money) and insured (landlord holds the money, pays a fee) options.

Dwelling

A self-contained unit of accommodation used as a home. The legal definition matters for council tax (each dwelling gets its own band), SDLT (surcharge applies per additional dwelling), and HMO licensing.

Early repayment charge (ERC)

A charge that may apply when repaying mortgage borrowing during a specified period. Use the lender’s current redemption statement rather than a universal percentage.

Easement

A legal right to use someone else's land for a specific purpose — typically a right of way or right to run pipes/cables. Easements are attached to the property title and transfer with ownership.

EICR (Electrical Installation Condition Report)

A report on fixed electrical installations. In-scope England rented homes need inspection at least every 5 years, or sooner if the report requires it. Findings and remedial work need a qualified person’s assessment.

EPC (Energy Performance Certificate)

A document rating a building’s energy performance. Check the applicable nation, current minimum standard, exemptions and future implementation dates; a proposed target is not the same as a requirement already in force.

Estoppel certificate

A term sometimes used for confirmation of tenancy facts in a property transaction. It is not a universal UK landlord form or substitute for legal due diligence.

Exchange of contracts

The point when a purchase contract becomes binding under the relevant conveyancing process. Deposit and completion arrangements depend on the transaction; Scotland follows a different system.

Fair wear and tear

The normal deterioration of a property through everyday use. Landlords cannot charge tenants for fair wear and tear — only for damage beyond what's reasonably expected.

FCA (Financial Conduct Authority)

The UK financial-services regulator. Check the firm, service and exact permissions on the official register; not every buy-to-let arrangement has the same regulatory protection.

Fire risk assessment

A formal assessment of fire hazards in a property, required for all HMOs and buildings with common areas. Must identify risks, evaluate who is at risk, and recommend mitigation measures. Must be reviewed regularly.

Fixed term

A tenancy period with a stated end date. Fixed-term assured tenancies in England's private rented sector were replaced by assured periodic tenancies from 1 May 2026, although historic records and other tenancy types may still use the term.

Fixtures and fittings

Items permanently attached to a property (fixtures: boiler, bathroom suite, fitted kitchen) vs items that can be removed (fittings: curtains, light shades, free-standing appliances). The distinction affects inventory, deposits, and tax treatment.

Flat roof

A low-pitched roof whose construction and drainage affect maintenance. Inspection frequency, insurance and lending conditions depend on the building; do not assume a universal replacement cycle.

Forfeiture

A legal process concerning termination of a lease for a breach, subject to important restrictions and remedies. It is not a general instruction to remove a residential tenant; seek specialist advice.

Freehold

Outright ownership of land and the building on it, with no time limit. Most houses are freehold. Flats are usually leasehold (you own the flat but not the building).

Furnished Holiday Letting (FHL)

A former tax category for qualifying holiday accommodation. The separate regime ended from April 2025: 6 April for Income Tax and Capital Gains Tax, and 1 April for Corporation Tax. Historical records and transitional rules can still matter.

HMRC: FHL regime abolitionSource checked 9 September 2026

Gas Safe Register

The official register of qualified gas engineers in the UK. Only Gas Safe registered engineers can legally work on gas appliances in rental properties. Always verify your engineer's registration number before they start work.

Gas Safety Certificate

Common name for the landlord gas safety record. It records relevant safety checks rather than certifying every aspect of a home. Keep the record, tenant-delivery evidence and follow-up work connected.

Gross yield

Annual rent divided by property purchase price, expressed as a percentage. For example, a property bought for £200,000 renting at £1,000/month has a gross yield of 6%. Does not account for expenses.

Ground 8

A mandatory ground for possession under Section 8 of the Housing Act 1988. For notices from 1 May 2026, it generally requires at least 3 months' rent arrears (or 13 weeks for weekly or fortnightly rent) at both notice and hearing, with 4 weeks' notice.

Ground rent

A charge under a lease payable to the freeholder. Whether it is payable or restricted depends on the lease and applicable legislation; check actual terms before budgeting.

Guarantor

Someone agreeing to meet specified obligations if the tenant does not. The guarantee’s wording, execution and enforceability matter. Affordability multiples vary by provider and are not universal legal requirements.

Habitable room

A term whose exact meaning depends on the rule being applied. Do not use a generic room list to decide alarm coverage: England’s smoke-alarm rules include bathrooms and lavatories as living accommodation.

GOV.UK: smoke and CO alarm guidanceSource checked 9 September 2026

Head lease

The primary lease between the freeholder and the leaseholder. Relevant when you own a leasehold flat — the head lease sets the rules you and your tenants must follow (e.g. subletting restrictions, pet clauses).

HHSRS (Housing Health and Safety Rating System)

A risk-based assessment used by local councils to evaluate housing hazards. Covers 29 hazard categories including damp, excess cold, falls, fire, and electrical safety. A Category 1 hazard (serious risk) requires the council to take enforcement action.

HMO (House in Multiple Occupation)

A shared home occupied by at least 3 people from more than one household and sharing facilities. In England, mandatory licensing generally covers qualifying HMOs with 5 or more occupants in more than one household; there is no three-storey requirement. Check council schemes and exceptions.

GOV.UK: houses in multiple occupationSource checked 9 September 2026

How to Rent guide

A government guide relevant to historic England tenancy paperwork. For assured tenancies from 1 May 2026, check current written-information requirements; qualifying existing tenancies needed the Renters’ Rights Act Information Sheet. An old How to Rent PDF does not prove the new requirements were met.

GOV.UK: written tenancy informationSource checked 9 September 2026

Improvement notice

A notice served by a local authority requiring a landlord to carry out specific improvements to a property within a set timeframe — typically to address HHSRS hazards. Non-compliance can lead to prosecution or a civil penalty.

Indemnity insurance

A one-off insurance policy that covers against specific risks — typically missing paperwork (e.g. no building regulations sign-off for past work). Often required by mortgage lenders and solicitors during property purchases.

Interest-only mortgage

A mortgage where monthly payments cover only the interest — not the capital. The full loan amount remains due at the end of the term. Most BTL mortgages are interest-only because the lower payments improve cash flow.

Inventory

A detailed record of a property's condition, fixtures, fittings, and contents at the start of a tenancy. Essential evidence for deposit disputes. Should include dated photographs of every room.

Joint and several liability

When multiple tenants sign a joint tenancy agreement, each tenant is individually liable for the entire rent — not just their share. If one tenant doesn't pay, the others must cover the shortfall.

Landlord's insurance

Specialist insurance covering buildings, contents (if furnished), public liability, rental income protection, and legal expenses. Standard home insurance does not cover rental properties.

LBTT (Land and Buildings Transaction Tax)

Scotland’s property transaction tax, with its own rates and thresholds. A separate Additional Dwelling Supplement may apply. It is not the same system as England’s SDLT.

Revenue Scotland: ADS rate changeSource checked 9 September 2026

Leasehold

A form of property ownership where you own the property for a fixed period (the lease term) but not the land it sits on. Most UK flats are leasehold. The lease length decreases over time and can affect the property's value and mortgageability.

Legionella

Bacteria that can grow in water systems at temperatures between 20-45°C, causing Legionnaires' disease. Landlords have a legal duty to carry out a legionella risk assessment on all rental properties.

Licence to occupy

An arrangement giving someone permission to use a property without creating a tenancy. Common in lodger arrangements where the landlord lives in the same property.

Lodger

Someone renting accommodation in a home shared with a resident landlord. Rights depend on the living arrangement and applicable law; the label alone does not establish notice or eviction procedures.

LTT (Land Transaction Tax)

Wales’ property transaction tax. Additional residential purchases may attract higher residential rates, applied in bands rather than a flat surcharge on the entire price. Check the Welsh Revenue Authority’s transaction rules.

Welsh Revenue Authority: LTT ratesSource checked 9 September 2026

LTV (Loan to Value)

The loan as a percentage of the property value. A £150,000 loan on a £200,000 property has a 75% LTV. Lender limits and valuation assumptions vary.

Making Tax Digital (MTD)

HMRC’s digital record-keeping and reporting system. Income Tax entry depends on combined qualifying gross self-employment and property income, not rental profit: over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028, subject to eligibility and exemptions.

HMRC: MTD eligibilitySource checked 9 September 2026

Management order

A local authority order that transfers management of a property from the landlord to the council. Used in cases of serious neglect, non-licensing, or antisocial behaviour. The council manages the property and deducts costs from rent.

Mesne profits

Compensation a landlord can claim from a tenant who remains in a property after a possession order has been granted. Calculated at the market rent rate for the period of unlawful occupation.

MyDeposits

A tenancy deposit protection provider offering different scheme arrangements. Confirm whether the actual deposit uses a custodial or insured service and the applicable jurisdiction.

Net yield

Rental income after a stated set of costs, divided by a stated property value or investment cost. Some calculations exclude finance costs and others include them. Label assumptions before comparing investments.

NRL (Non-Resident Landlord)

A landlord whose usual home is outside the UK. Under the NRL Scheme, letting agents must deduct 20% tax from rent unless the landlord has HMRC approval to receive rent gross (form NRL1).

Open Banking

A UK banking initiative that allows FCA-authorised third-party apps to securely access your bank transaction data (read-only). Tendmere's bank-feed workflow is provider-credential gated; manual and CSV imports are live until the partner connection is active.

Party wall

A shared wall between two properties. The Party Wall Act 1996 requires you to serve notice on adjoining owners before carrying out certain works (e.g. building on the boundary, cutting into a party wall).

Payment on account

An advance payment towards your next tax bill, due on 31 January and 31 July each year. Each payment is 50% of the previous year's tax liability. Can catch new landlords off guard — your first January may include 150% of a normal year's tax.

Periodic tenancy

A tenancy that rolls on a period-by-period basis. From 1 May 2026, most private rented sector tenancies in England are assured periodic tenancies; tenants can usually leave with 2 months' notice and landlords must use valid Section 8 grounds for possession.

Permitted Development (PD)

National planning permission that allows certain types of development without a full planning application. Includes Class MA for converting commercial buildings to residential use.

Prescribed Information

Required information about an in-scope protected tenancy deposit, the parties and scheme procedures. Keep the information and delivery evidence together; a scheme reference alone does not establish that the information duty was met.

Rent book

A record of rent due and received. Specific rent-book duties can depend on the tenancy and payment frequency. A digital ledger should not be assumed to replace every statutory requirement.

Renters' Rights Act 2025

The English private rented sector reform now being implemented in phases. Phase 1 took effect on 1 May 2026, abolishing Section 21 in the PRS, moving most tenancies to assured periodic tenancies, reforming Section 8 grounds, banning rental bidding, and strengthening pet-request rights.

Replacement Domestic Items Relief

Tax relief allowing landlords to deduct the cost of replacing domestic items (furniture, appliances, kitchenware) in furnished properties. Covers the replacement cost only — not the initial purchase. Replaced the old Wear and Tear Allowance in 2016.

Right to Rent

Checks on adult occupiers’ entitlement to rent residential accommodation in England, subject to exemptions. Routes include eligible online share-code or document checks; it is not a UK-wide requirement to collect original documents in every case.

GOV.UK: checking right to rentSource checked 9 September 2026

RLA / NRLA

The National Residential Landlords Association — the UK's largest landlord membership body, formed from the merger of the RLA and NLA in 2020. Provides advice, lobbying, and resources for private landlords.

SA105

UK property supplementary pages used with a Self Assessment return where applicable. A property-income report helps prepare a review; it is not itself an HMRC filing. Tendmere’s production HMRC submission remains unavailable.

Section 13

The formal process for increasing rent on an assured periodic tenancy. From 1 May 2026 landlords use Form 4A, give at least 2 months' notice, and cannot increase rent in the first year or more than once a year. Tenants can challenge the proposed market rent at tribunal.

Section 21

The former 'no fault' eviction route for assured shorthold tenancies. In England's private rented sector it was abolished by the Renters' Rights Act 2025 from 1 May 2026; landlords now need a valid Section 8 ground.

Section 24

The restriction on mortgage interest relief for individual landlords. Since April 2020, landlords can only claim a 20% tax credit on mortgage interest rather than deducting it as an expense. Does not apply to limited companies.

Section 8

A route to possession that requires the landlord to prove specific grounds (such as rent arrears, antisocial behaviour, or wanting to sell). Both mandatory and discretionary grounds exist.

Selective licensing

A council scheme requiring in-scope privately rented homes in a designated area to be licensed, subject to exemptions. Check the council’s current boundary, conditions and enforcement information.

Smoke alarm

Legally required on every storey with a habitable room in all rented properties in England. Must be in working order at the start of each tenancy.

SPV (Special Purpose Vehicle)

A limited company set up specifically to hold rental property. Most BTL lenders require the company to be an SPV with a specific SIC code (68100 or 68209) and no other trading activity.

Stamp Duty Land Tax (SDLT)

Property transaction tax in England and Northern Ireland. Buying an additional residential property usually adds 5 percentage points to the relevant residential rates, subject to exceptions. Scotland uses LBTT; Wales uses LTT.

HMRC: residential SDLT ratesSource checked 9 September 2026

Standing order

A recurring payment instruction controlled by the payer. A scheduled instruction does not prove rent reached the receiving account; reconcile actual receipts.

TDS (Tenancy Deposit Scheme)

One of three government-approved tenancy deposit protection schemes in England and Wales. Offers both custodial and insured options.

Void period

A period without rental occupation or income between lettings. Ongoing costs and council-tax liability depend on the property and circumstances; model them separately from lost rent.

Yield

Rental income expressed as a percentage of a stated property value or investment cost. Gross and net measures use different costs; check the formula before comparing results.