Plain-English definitions of the terms landlords meet when selling a property portfolio, from Ground 1A and Capital Gains Tax to HMOs and the new landlord register. Each entry links to the full guide.
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Allowable expenses are the running costs of a letting business that can be deducted from rent before income tax: repairs, agent fees, insurance, service charges, accountancy and similar. Improvements and purchase costs are capital, so they are not deductible from rent but may reduce Capital Gains Tax when you sell. Mortgage interest gets only a basic rate credit for individual landlords.
Read the full entry: Allowable Expenses for LandlordsThe annual exempt amount is the tax-free allowance for Capital Gains Tax. For the 2026 to 2027 tax year it is £3,000 per person, so joint owners each have their own allowance. Selling properties in different tax years can mean using more than one year's allowance.
Read the full entry: Annual Exempt AmountAn Article 4 direction is a council order that removes certain permitted development rights in an area. For landlords, the most common one removes the right to turn a family house (use class C3) into a small HMO (use class C4) without planning permission.
Read the full entry: Article 4 DirectionAsbestos was widely used in buildings before 2000, in materials such as textured ceilings, floor tiles, pipe lagging and garage roofs. It is usually safe if left undisturbed. Landlords must manage asbestos in the common parts of flats and HMOs, and must have a refurbishment survey before work that could disturb it.
Read the full entry: AsbestosSince 1 May 2026, most private tenancies in England have been assured periodic tenancies with no fixed end date, under the Renters' Rights Act 2025. Tenants can end the tenancy with two months' notice, and landlords must rely on a statutory ground to regain possession.
Read the full entry: Assured Periodic TenancyATED is an annual tax on UK homes worth more than £500,000 owned by a company or certain partnerships. Homes let commercially to unconnected tenants are relieved from the charge, but the company must still file an ATED relief declaration return every year by 30 April, or face penalties.
Read the full entry: ATED (Annual Tax on Enveloped Dwellings)An auction sale sells property to the highest bidder on a set date. At a traditional auction contracts exchange when the hammer falls and completion usually follows within 28 days. The modern method of auction gives the buyer longer to complete but charges them a reservation fee.
Read the full entry: Auction SaleAwaab's Law sets strict legal deadlines for investigating and fixing damp, mould and other serious hazards. It already applies to social housing, with phase two starting on 30 November 2026. The government is consulting on extending it to private landlords (closing 18 December 2026), and no start date has been set yet.
Read the full entry: Awaab's LawThe basic-rate band is the slice of taxable income taxed at the basic rate: £37,700 above the personal allowance for 2026 to 2027. Capital gains that fit within any unused part of the band are taxed at 18%, and gains above it at 24%.
Read the full entry: Basic-Rate BandBridging finance is a short-term loan secured on property, usually for up to 24 months, used to buy or refinance quickly before longer-term funding or a sale is in place. It is fast but expensive, with interest charged monthly, and every lender needs a clear exit strategy.
Read the full entry: Bridging FinanceThe Building Safety Act 2022 protects qualifying leaseholders from most costs of fixing building safety defects such as dangerous cladding. A landlord who owned more than three UK properties on 14 February 2022 may not get those protections. An EWS1 form records a fire safety assessment of external walls and is often needed for buyers to get a mortgage.
Read the full entry: Building Safety Act and EWS1Business Asset Disposal Relief (BADR) taxes qualifying business gains at a lower CGT rate: 14% in 2025 to 2026 and 18% from 6 April 2026, up to a £1 million lifetime limit. Ordinary residential letting is an investment, not a trading business, so most landlords cannot claim it. Former furnished holiday let owners may still qualify for a limited time.
Read the full entry: Business Asset Disposal ReliefA buy-to-let mortgage is a loan secured on a property bought to rent out. Lenders size it mainly on the rent, testing that rent covers the interest by a set margin at a stressed rate. Landlords with four or more mortgaged rental properties are treated as portfolio landlords and face fuller checks.
Read the full entry: Buy-to-Let MortgageCapital Gains Tax is charged on the gain you make when you sell a property that is not your main home. For 2026 to 2027, gains on residential property are taxed at 18% within the basic-rate band and 24% above it, after the £3,000 annual exempt amount.
Read the full entry: Capital Gains Tax (CGT)Capital improvements are costs that add to a property, such as an extension or a loft conversion, rather than maintaining it. They can usually be deducted when working out the gain for Capital Gains Tax, whereas ordinary repairs and mortgage interest cannot. Keep the invoices, as your accountant will need evidence.
Read the full entry: Capital ImprovementsA capital loss arises when a property sells for less than its allowable cost. Losses are set against gains in the same tax year first, and unused losses can be carried forward to later years if they are reported to HMRC, usually within four years.
Read the full entry: Capital LossesA cash-funded buyer pays from their own resources rather than with a mortgage. This removes the buyer's lender from the process, which can reduce delays, although searches, title checks and the redemption of your own mortgage still take time.
Read the full entry: Cash-Funded BuyerWhen you sell a UK residential property and there is Capital Gains Tax to pay, you must report the sale to HMRC and pay the tax within 60 days of completion. Late reporting can lead to penalties and interest, so involve your accountant before the sale completes.
Read the full entry: CGT 60-Day ReportingA chain-free sale is one where neither side depends on another sale or purchase to complete. Most landlord sales have no onward chain, because the seller is not buying a home. The best result comes when the buyer is chain free too, such as a cash investor.
Read the full entry: Chain-Free SaleCivil penalties are fines councils can impose on landlords instead of prosecuting them, for breaches such as licensing failures, ignoring improvement notices or breaking Renters' Rights Act rules. Penalties run up to £40,000 for serious or repeat breaches. A banning order goes further and stops a person letting property in England.
Read the full entry: Civil Penalties and Banning OrdersA commercial lease lets a shop, office or other business unit, often in a building that also has flats. Business tenants may have security of tenure under the Landlord and Tenant Act 1954 unless the lease was contracted out. The rent, length, break clauses and the tenant's financial strength decide most of the value when you sell.
Read the full entry: Commercial Leases in Mixed-Use BuildingsComparable evidence is the record of similar properties that have recently sold or let nearby. Valuers and buyers use it to set a price. For rental portfolios there are two kinds of comparables: vacant possession sale prices for each house, and investment comparables based on rent and yield.
Read the full entry: Comparable EvidenceA completion statement is the solicitor's account of the money on a sale. It starts with the price, adjusts for rent and service charge apportionments and transferred deposits, then deducts mortgage redemptions, fees and any retentions, showing exactly what the seller receives on completion day.
Read the full entry: Completion StatementConveyancing is the legal work of transferring ownership of property, carried out by a solicitor or licensed conveyancer. In a portfolio sale it covers every title, tenancy and lender involved, so it is usually the longest stage of the sale.
Read the full entry: ConveyancingConveyancing searches are enquiries the buyer's solicitor makes of councils, water companies and other bodies to find issues not shown on the title, such as planning history, road schemes, drainage and flood risk. On a portfolio sale each property needs its own searches, so they are often the slowest part of the timetable.
Read the full entry: Conveyancing SearchesCouncils in England can charge a premium of up to 100%, effectively double council tax, on homes that have been empty and substantially unfurnished for a year or more. The premium is at each council's discretion, and homes actively marketed for sale or let are exempt for up to 12 months.
Read the full entry: Council Tax Empty Homes PremiumA cross-charged mortgage uses several properties as security for one loan or for all debts owed to the lender. Selling one property usually needs the lender's consent to release its charge, and the lender may require more of the sale proceeds to go towards the remaining debt than that property's own share of the loan.
Read the full entry: Cross-Charged Portfolio MortgagesA data room is a secure online folder holding every document a buyer needs to assess a property portfolio: titles, tenancies, rent schedules, safety certificates, licences and accounts. A complete data room lets buyers make firm offers and lets solicitors move to exchange faster.
Read the full entry: Data RoomThe Decent Homes Standard sets minimum conditions for rented homes, such as being in reasonable repair and free from serious hazards. The Renters' Rights Act 2025 extends it to privately rented homes, with the requirements phased in over the coming years. Buyers factor the likely cost of meeting it into their offers.
Read the full entry: Decent Homes StandardA deed of variation lets a beneficiary redirect what they inherit, for example passing a share of a rental property to their own children. If it is made within two years of the death and includes the right statements, Inheritance Tax and Capital Gains Tax treat the change as if the person who died had made it in their will.
Read the full entry: Deed of VariationThe deposit at exchange is the sum the buyer pays when contracts are exchanged, usually 10% of the price. It commits the buyer: if they fail to complete, the seller can serve a notice to complete and, if that expires, keep the deposit and resell. A lower deposit, such as 5%, can be agreed but gives the seller less protection.
Read the full entry: Deposit at ExchangeA desktop market appraisal is an indicative view of what a property or portfolio might achieve, based on rents, tenancies, condition, location and comparable evidence. It is not a RICS Red Book valuation and should not be relied on for lending, tax or probate.
Read the full entry: Desktop Market AppraisalA disrepair claim is a legal claim by a tenant that the landlord has failed to carry out repairs they are responsible for, or let a home that is unfit for human habitation. Tenants can claim compensation and ask the court to order works. Landlords are responsible for the structure, exterior and key installations.
Read the full entry: Disrepair ClaimsDue diligence is the buyer's investigation of a property or portfolio before committing: legal title, searches, tenancies, rent, safety compliance, physical condition and finance. For a portfolio it is the stage most likely to cause delays or price renegotiation, so preparation by the seller pays off.
Read the full entry: Due DiligenceAn early repayment charge (ERC) is a fee a lender charges if a mortgage is repaid during its fixed or discounted period. It is usually a percentage of the balance that steps down each year, for example 5% in year one falling to 1% in year five. On a portfolio sale, ERCs across several loans can cost tens of thousands of pounds.
Read the full entry: Early Repayment ChargesPrivate landlords in England must have the electrical installation in each rented home inspected and tested by a qualified person at least every five years, and give tenants a copy of the Electrical Installation Condition Report (EICR). Remedial work must be done within 28 days, or sooner if the report says so.
Read the full entry: Electrical Safety (EICR)An Energy Performance Certificate rates a home's energy efficiency from A to G. Privately rented homes must currently meet at least band E, and the government has confirmed a move to band C by 1 October 2030, with a £10,000 cost cap per property, subject to legislation.
Read the full entry: EPC and Minimum Energy Efficiency StandardsExchange of contracts is the point at which a sale becomes legally binding, usually with a deposit paid. Completion is when the money is transferred and ownership passes to the buyer; for tenanted property, the buyer becomes the landlord from that date.
Read the full entry: Exchange and CompletionProfits made in a property company belong to the company, so landlords pay tax again to take them out. The main routes are dividends, salary, repayment of money the director lent the company, and, on a final exit, liquidation, where distributions are usually taxed as capital gains on the shares.
Read the full entry: Extracting Money from a Property CompanyA fire risk assessment (FRA) identifies fire hazards and the measures needed to keep people safe. Landlords who are the responsible person for the common parts of a block of flats or an HMO must have one under the Regulatory Reform (Fire Safety) Order 2005, and since October 2023 every FRA must be recorded in full.
Read the full entry: Fire Risk AssessmentsThe First-tier Tribunal (Property Chamber) is the specialist tribunal that decides many residential property disputes in England, including challenges to rent increases, appeals against licensing decisions and civil penalties, rent repayment orders, and leasehold disputes over service charges and lease extensions.
Read the full entry: First-tier Tribunal (Property Chamber)Freehold means you own the property and the land outright. Leasehold means you own the right to occupy it for a fixed number of years under a lease from the freeholder. Most flats are leasehold, and the lease length, ground rent and service charges all affect what buyers will pay.
Read the full entry: Freehold and LeaseholdFurnished holiday lets used to have their own, more generous tax rules, including full relief for mortgage interest and access to Business Asset Disposal Relief. The regime was abolished from 6 April 2025, so holiday lets are now taxed like other residential lets, including on sale.
Read the full entry: Furnished Holiday Lets (FHL)Landlords must have every gas appliance, fitting and flue in a rented home checked every 12 months by a Gas Safe registered engineer, and give tenants a copy of the gas safety record within 28 days. New tenants must receive it before they move in. Records must be kept for at least two years.
Read the full entry: Gas Safety Certificate (CP12)Gazumping is when a seller accepts a higher offer after already agreeing a sale. Gazundering is when a buyer cuts their offer just before exchange. Both are legal in England and Wales until contracts are exchanged, so the best protection is a short, well prepared timetable and, where needed, an exclusivity agreement.
Read the full entry: Gazumping and GazunderingGifting a rental property to a family member counts as selling it at market value for Capital Gains Tax, so tax can be due even though no money changes hands. For Inheritance Tax the gift drops out of your estate if you survive 7 years and stop benefiting from the rent.
Read the full entry: Gifting PropertyGround 1A lets a landlord regain possession in order to sell, with at least four months' notice, but not within the first 12 months of a tenancy. If possession is obtained this way, the property cannot be re-let for 12 months from the end of the notice, even if the sale falls through.
Read the full entry: Ground 1A (Selling Ground)Ground rent is a yearly payment to the freeholder under a lease. Service charges cover the costs of running the building, such as insurance, repairs and cleaning. New residential leases granted since 30 June 2022 carry no financial ground rent, but older leases can have rising ground rents that hit value, and high service charges reduce net yield.
Read the full entry: Ground Rent and Service ChargesA guarantor is a person who agrees to pay the tenant's rent and other liabilities if the tenant does not. Guarantees must be in writing and signed, and should be worded to cover a periodic tenancy, rent increases and any change of landlord. With rent in advance now limited, guarantors are the main support for tenants without a strong credit history.
Read the full entry: GuarantorsHeads of terms are a short written summary of the main points agreed for a sale before contracts are drafted: price, which properties are included, timetable, conditions and who pays which costs. They are normally not legally binding, apart from clauses such as exclusivity and confidentiality.
Read the full entry: Heads of TermsMandatory licensing applies to HMOs with five or more people forming two or more households. Councils can also introduce additional licensing for smaller HMOs and selective licensing for other privately rented homes in particular areas. A licence is personal to the licence holder and does not pass to a buyer.
Read the full entry: HMO and Selective LicensingA holding deposit reserves a property while checks are done and is capped at one week's rent. Tenancy deposits are capped at five weeks' rent, or six where annual rent is between £50,000 and £100,000. Since 1 May 2026, landlords cannot demand rent before the tenancy agreement is signed, and can ask for no more than one month's rent in advance before it starts.
Read the full entry: Holding Deposits and Rent in AdvanceA property is a house in multiple occupation (HMO) when it is let to three or more people forming two or more households who share facilities such as a kitchen or bathroom. HMOs occupied by five or more people forming two or more households need a mandatory licence from the council.
Read the full entry: House in Multiple Occupation (HMO)The Housing Health and Safety Rating System is the risk-based method councils use to assess hazards in homes, such as damp and mould, excess cold, falls and fire. Serious Category 1 hazards oblige the council to act, usually through an improvement notice, and landlords who fail to comply face penalties.
Read the full entry: Housing Health and Safety Rating System (HHSRS)Incorporation means moving a personally owned rental portfolio into a limited company. The transfer is treated as a sale at market value, so Capital Gains Tax and Stamp Duty can be due unless reliefs apply. Incorporation relief can defer the gain, but only for a genuine property business, and from 6 April 2026 it must be claimed.
Read the full entry: IncorporationIndemnity insurance is a one-off policy that protects a buyer and their lender against the financial loss from a specific legal defect, such as missing building regulation approval or a breached covenant. It is a quick way to deal with historic problems in a sale, but it pays out only if the risk actually leads to a loss, and it is void if the issue is raised with the council.
Read the full entry: Indemnity InsuranceInheritance Tax can be charged on the value of an estate, including rental property, above the available nil-rate bands. Selling, gifting or restructuring a portfolio can affect both Inheritance Tax and Capital Gains Tax, so take specialist advice before acting.
Read the full entry: Inheritance Tax and PropertyAn interest cover ratio (ICR) compares a property's rent with the mortgage interest, usually at a stressed rate. Lenders typically want rent to be at least 125% of the interest for companies and basic-rate taxpayers, and 145% for higher-rate taxpayers, before they will lend or refinance.
Read the full entry: Interest Cover RatioAt the end of an interest-only mortgage term the whole loan becomes due. Landlords must repay it from savings, refinance, or sell the property. Lenders expect a plan in place before the term ends; if the loan is not repaid, it can go into default and, ultimately, the lender can take possession and sell.
Read the full entry: Interest-Only Mortgage Term EndAn inventory and check-in report records the contents and condition of a property at the start of a tenancy, usually with dated photos. Compared with the check-out report, it is the main evidence in a deposit dispute. Without one, landlords struggle to justify deductions for damage beyond fair wear and tear.
Read the full entry: Inventories and Check-In ReportsProperty can be jointly owned as joint tenants, where the whole passes automatically to the survivor, or as tenants in common, where each owner holds a share they can leave by will. The choice affects Capital Gains Tax, income tax, inheritance and who must sign when you sell.
Read the full entry: Joint Ownership (Joint Tenants and Tenants in Common)Japanese knotweed is an invasive plant that can damage paving, drains and lightweight structures. It does not stop a sale, but sellers must answer the knotweed question on the property information form honestly, and most lenders want a professional management plan with an insurance-backed guarantee before they lend.
Read the full entry: Knotweed (Japanese Knotweed)Know-your-customer (KYC) and anti-money laundering (AML) checks confirm who you are and where funds come from. Firms involved in property transactions carry them out under the Money Laundering Regulations before they can act for you.
Read the full entry: KYC and Anti-Money Laundering ChecksLandlord insurance covers a rental property's buildings, the landlord's contents and their liability to tenants and visitors, with options such as rent guarantee and legal expenses. Standard home insurance does not cover letting. Lenders require buildings cover, and policies often limit cover when a property is empty or let as an HMO without telling the insurer.
Read the full entry: Landlord InsuranceA lease extension adds years to the lease of a flat. Value and mortgageability fall as a lease shortens, especially below 80 years, when marriage value has traditionally increased the premium. Leaseholders can extend through the statutory route or by agreement, and the Leasehold and Freehold Reform Act 2024 is changing the rules.
Read the full entry: Lease ExtensionsLandlords have a legal duty to assess and control the risk of exposure to legionella bacteria in the water systems of their rented homes. There is no legionella certificate, but landlords should carry out and record a proportionate risk assessment and take simple control measures.
Read the full entry: Legionella Risk AssessmentA letting agent handover is the transfer of management, tenant records, deposits and rent from the seller's agent to the buyer when a tenanted property is sold. The seller should check the agency agreement for sale fees or notice periods, and tenants must be told the new landlord's name and address.
Read the full entry: Letting Agent HandoverMany landlords hold property through a limited company, often a special purpose vehicle (SPV) set up only to own property. The company can sell its properties and pay Corporation Tax on the gains, or in some cases the shares in the company can be sold instead. The tax treatment differs significantly, so take advice from your accountant.
Read the full entry: Limited Company (SPV) PortfolioLoan to value (LTV) is the mortgage balance as a percentage of the property's value. A £150,000 loan on a £200,000 house is 75% LTV. Across a portfolio, LTV shows how much equity you have, what lenders will offer, and how much cash a sale would release.
Read the full entry: Loan to ValueMaking Tax Digital (MTD) for Income Tax requires landlords and sole traders to keep digital records and send HMRC quarterly updates through compatible software. It started on 6 April 2026 for people with combined property and self-employment income over £50,000, falls to £30,000 from April 2027 and £20,000 from April 2028.
Read the full entry: Making Tax Digital for LandlordsMaterial information is anything an average buyer needs to make an informed decision about a property, such as tenure, council tax band, utilities, flood risk or building safety issues. Estate agents must not leave it out of their marketing, and National Trading Standards guidance sets it out in three parts: A, B and C.
Read the full entry: Material InformationMixed-use property combines residential and commercial parts in one purchase, such as a shop with a flat above. Buyers pay Stamp Duty at non-residential rates, which top out at 5% with no surcharge, but HMRC applies the test strictly. Lending and VAT also follow commercial rules for the non-residential part.
Read the full entry: Mixed-Use PropertyWhen you sell a mortgaged property, the loan is repaid from the sale proceeds on completion, using a redemption statement from the lender. If you are still in a fixed or discounted rate period, an early repayment charge, often 1% to 5% of the balance, may also be due.
Read the full entry: Mortgage Redemption and Early Repayment ChargesNegative equity means the mortgage on a property is larger than the property is worth. To sell, the landlord must pay the shortfall or agree terms with the lender. In a portfolio sale, equity in other properties can often cover the gap.
Read the full entry: Negative EquitySince 1 May 2026, landlords and letting agents in England cannot refuse to let to someone, or put them at a disadvantage, because they receive benefits or have children living with them. "No DSS" and "no children" adverts are banned, and terms in mortgages or insurance that would require such refusals no longer bind landlords.
Read the full entry: No DSS and No Children RulesA non-disclosure agreement is a contract in which a buyer agrees to keep the details of your portfolio confidential. PSC asks buyers to sign one before they receive portfolio information, which helps keep an off-market sale discreet.
Read the full entry: Non-Disclosure Agreement (NDA)The Non-Resident Landlord Scheme taxes UK rent paid to landlords who usually live abroad. Letting agents, or tenants paying more than £100 a week, must deduct basic rate tax from the rent unless HMRC has approved the landlord to receive it gross. Non-residents who sell UK property must report within 60 days.
Read the full entry: Non-Resident Landlord SchemeAn off-market sale is one where the property is not advertised on public property portals. Details are shared privately with suitable buyers, which can protect tenants and the landlord's privacy, although fewer buyers will see the property.
Read the full entry: Off-Market SaleOverage, also called clawback, is a promise by a buyer to pay the seller an extra sum if the property's value rises because of a future event, usually planning permission. It lets a landlord sell now while keeping a share of any development uplift later.
Read the full entry: OverageSince 1 May 2026, tenants in England can ask to keep a pet and landlords must not unreasonably refuse. The landlord must reply in writing, normally within 28 days, and give reasons if they refuse. A head lease that bans pets, or a property unsuitable for the animal, can be a reasonable ground.
Read the full entry: Pets in LetsA phased sale spreads the sale of a portfolio over more than one tax year. It can make use of more than one annual exempt amount and basic-rate band, but means keeping the remaining properties, mortgages and tenants for longer.
Read the full entry: Phased SaleA portfolio or block sale is the sale of several properties together, usually to one investor buyer and often with a single completion date. It can save time and costs compared with selling each property separately, although the price will reflect the buyer taking the whole portfolio.
Read the full entry: Portfolio Sale (Block Sale)A power of attorney lets a chosen person act for a landlord. A registered lasting power of attorney for property and financial affairs allows attorneys to manage and sell rental property if the landlord can no longer do so. Without one, family must apply to the Court of Protection for deputyship, which is slower.
Read the full entry: Power of AttorneyUnder the Renters' Rights Act 2025, private landlords in England must register themselves and their properties on the Private Rented Sector Database. Registration opens on 15 December 2026, region by region: West Midlands landlords go first and must register by 14 March 2027, and all landlords must be registered by 14 November 2027.
Read the full entry: Private Rented Sector Database (Landlord Register)The Renters' Rights Act 2025 will require private landlords to join a landlord ombudsman scheme, so tenants can escalate complaints without going to court. It will follow the landlord register, and the government expects it to be in place in 2028.
Read the full entry: Private Rented Sector Landlord OmbudsmanPrivate Residence Relief can reduce or remove Capital Gains Tax on a home that has been your main residence. If a rental property was once your home, part of the gain may qualify, including the final nine months of ownership. Your accountant will confirm what applies.
Read the full entry: Private Residence ReliefA probate property sale is the sale of property owned by someone who has died. Executors can market the property straight away but normally need the grant of probate before completion. Tenancies continue after the death, and CGT is worked out on the rise in value since the probate valuation.
Read the full entry: Probate Property SaleThe property allowance makes the first £1,000 of gross property income tax free, or lets you deduct £1,000 instead of actual expenses. Rent-a-room relief makes up to £7,500 a year tax free when you let furnished rooms in your own home to a lodger. Both suit small amounts of income rather than a rental portfolio.
Read the full entry: Property Allowance and Rent-a-Room ReliefQuiet enjoyment is a tenant's legal right to live in their home without unreasonable interference from the landlord. It is implied into every tenancy. Landlords can enter for repairs, inspections and viewings only with reasonable notice, usually at least 24 hours, and at reasonable times.
Read the full entry: Quiet EnjoymentWhen a fixed rate ends, landlords can refinance with a new lender, switch to a new product with their existing lender, or sell. Refinancing keeps the portfolio but may fail stress tests or squeeze cash flow at today's rates; selling releases equity and ends the risk but triggers Capital Gains Tax and sale costs.
Read the full entry: Refinancing versus SellingRent arrears are rent that is due but unpaid. Landlords can seek possession on the mandatory Ground 8 once at least three months' rent is owed, or on discretionary grounds for smaller arrears or persistent late payment. When a property is sold, arrears are usually kept by the seller or assigned to the buyer by agreement.
Read the full entry: Rent ArrearsSince 1 May 2026, landlords in England can only increase the rent on an assured tenancy once a year, using a Section 13 notice on the prescribed form with at least two months' notice. Tenants can challenge the increase at the First-tier Tribunal, which decides the market rent.
Read the full entry: Rent Increases (Section 13 Notice)A rent repayment order requires a landlord to repay rent to a tenant, or to the council where housing benefit or Universal Credit was paid, because the landlord committed certain offences, such as letting an unlicensed HMO or illegal eviction. The Renters' Rights Act 2025 extended them and raised the maximum to two years' rent.
Read the full entry: Rent Repayment Orders (RRO)Rent-to-rent is an arrangement where a company rents a property from the owner, often for a guaranteed rent, then sublets it, usually room by room. The owner gets steady income without management, but stays exposed to licensing, safety and rent repayment risks if the operator gets things wrong.
Read the full entry: Rent-to-RentRental yield is the annual rent expressed as a percentage of a property's value. Gross yield uses the rent before costs, while net yield deducts costs such as management, repairs and insurance. Investor buyers use yield to compare portfolios and decide what to offer.
Read the full entry: Rental YieldThe Renters' Rights Act 2025 is the biggest reform of private renting in England in decades. From 1 May 2026 it abolished Section 21 evictions and moved tenancies onto periodic terms, with further measures, including the landlord register and ombudsman, being phased in.
Read the full entry: Renters' Rights Act 2025The residence nil-rate band (RNRB) is an extra Inheritance Tax allowance of up to £175,000 per person when a home the deceased lived in passes to children or grandchildren. It is tapered away by £1 for every £2 the estate exceeds £2 million, so many portfolio landlords lose some or all of it.
Read the full entry: Residence Nil-Rate BandGross yield is annual rent ÷ price. Net yield deducts running costs first. Gross profit is rent collected less direct property costs, and net profit also deducts overheads, mortgage interest and then tax. ROI compares profit with the cash you put in; ROCE compares profit before interest and tax with all the capital tied up, borrowed or not.
Read the full entry: Return on Investment (ROI) and Deal CalculationsUnder the Landlord and Tenant Act 1987, a landlord selling a building with two or more flats may have to offer it first to the qualifying tenants by serving Section 5 notices. Long leaseholders usually qualify, but assured and assured shorthold tenants do not, so a block let entirely on ordinary tenancies is usually outside the rules.
Read the full entry: Right of First Refusal (Section 5 Notice)Landlords in England must check that every adult who will live in a rented home has the right to rent in the UK before the tenancy starts, and keep copies of the documents. Follow-up checks are needed for people with time-limited permission. Penalties are up to £20,000 per occupier for repeat breaches.
Read the full entry: Right to Rent ChecksIn a sale and leaseback, an owner sells a property and immediately leases it back from the buyer, releasing capital while keeping use of the building. It is common for commercial property. For homeowners, sale and rent back is regulated by the Financial Conduct Authority because of past mis-selling.
Read the full entry: Sale and LeasebackSection 21 of the Housing Act 1988 allowed landlords to end an assured shorthold tenancy without giving a reason. It was abolished in England from 1 May 2026 by the Renters' Rights Act 2025, so landlords now need a specific statutory ground to regain possession.
Read the full entry: Section 21Section 24 refers to the rules that stop individual landlords deducting mortgage interest from their rental income. Instead, they receive a tax credit worth 20% of the interest, which leaves higher-rate taxpayers paying more tax. Properties held in a limited company are treated differently.
Read the full entry: Section 24 (Mortgage Interest Restriction)A Section 8 notice is the notice a landlord serves to seek possession on one or more statutory grounds, such as selling the property (Ground 1A) or rent arrears. The notice period depends on the ground used; for selling, it is at least four months.
Read the full entry: Section 8 NoticeCouncils and housing associations buy homes from private landlords to house families and people in temporary accommodation. They can be reliable buyers, but they usually need vacant possession or a tenant they can rehouse, expect the property to meet their standards, and work to their own valuation and approval timetable.
Read the full entry: Selling to a Housing Association or CouncilServiced accommodation and short lets are furnished homes let by the night or week rather than on tenancies. They are not assured tenancies, so the Renters' Rights Act tenancy rules do not apply, but they face planning limits in some areas, VAT on larger operators, business rates or council tax tests, and, since April 2025, ordinary property tax treatment.
Read the full entry: Serviced Accommodation and Short LetsIn a share sale, the owner sells the company that holds the properties rather than the properties themselves. The buyer pays Stamp Duty of 0.5% on the shares instead of Stamp Duty Land Tax on the properties, and the seller avoids the company's own tax on the property gains. In return buyers expect a price discount for the company's latent tax, and full warranties.
Read the full entry: Share Sale of a Property CompanyA sitting tenant is a tenant who stays in the property when it is sold. The term is most often used for Rent Act 1977 regulated tenants, whose tenancies began before 15 January 1989. They pay a registered fair rent, have strong security and succession rights, and properties let to them sell at a significant discount to vacant value.
Read the full entry: Sitting Tenants and Regulated TenanciesLandlords in England must fit a smoke alarm on every storey used as living accommodation and a carbon monoxide alarm in any room with a fixed combustion appliance, other than a gas cooker. Alarms must work on the first day of each tenancy and be repaired or replaced once a fault is reported.
Read the full entry: Smoke and Carbon Monoxide AlarmsStamp Duty Land Tax is paid by the buyer, not the seller, when they buy property in England (Wales has Land Transaction Tax instead). Investor buyers usually pay a 5% surcharge on additional residential properties, which affects what they are willing to offer for a portfolio.
Read the full entry: Stamp Duty Land Tax (SDLT)Student lets are homes let to students, usually shared houses let for the academic year. Since 1 May 2026 they are assured periodic tenancies like other lets, but landlords of student HMOs can use Ground 4A to regain possession over the summer, with four months' notice, so the property can be re-let for the next year.
Read the full entry: Student LetsA survey is an inspection of a property's condition commissioned by the buyer. RICS sets three levels: Level 1 for basic condition, Level 2 for most conventional homes, and Level 3 for older or altered buildings. A lender's mortgage valuation is separate and only confirms the property is good security for the loan.
Read the full entry: SurveysDeposits taken for assured tenancies must be protected in a government-approved scheme within 30 days, with the prescribed information given to the tenant. When a tenanted property is sold, arrangements must be made to transfer each deposit and its protection to the buyer.
Read the full entry: Tenancy Deposit ProtectionA tenanted sale is the sale of a property with the tenants staying in place. The tenancy continues and the buyer becomes the landlord on completion, so tenants must be told who their new landlord is. Many investor buyers prefer tenanted properties because the rent continues from day one.
Read the full entry: Tenanted Sale (Sitting Tenants)A restriction is an entry in the proprietorship register at HM Land Registry that stops a sale or mortgage being registered unless certain conditions are met, such as a lender's consent or two trustees signing. Every restriction on a title must be satisfied or removed before the buyer can be registered.
Read the full entry: Title RestrictionsA transfer of equity changes who owns a property without selling it on the open market, for example adding a spouse to the title or removing a former partner. It needs a Land Registry transfer and usually the lender's consent. Transfers between spouses are free of CGT, but Stamp Duty can apply where mortgage debt is taken on.
Read the full entry: Transfer of EquityA trust holds property for beneficiaries, with trustees as the legal owners. Landlords use trusts for estate planning, but property in most trusts faces Inheritance Tax charges every 10 years, trustees pay 24% CGT on residential gains with a reduced allowance, and a sale needs every trustee to sign.
Read the full entry: TrustsUnder offer means a seller has accepted an offer. Sold subject to contract (SSTC) means the sale is agreed but contracts have not yet been exchanged. Neither is legally binding, so the period between acceptance and exchange is when most sales fall through.
Read the full entry: Under Offer and SSTCUnregistered land is property that has never been registered at HM Land Registry because it has not changed hands since registration became compulsory. Ownership is proved with paper deeds instead. A sale triggers first registration, so missing or incomplete deeds can delay a sale.
Read the full entry: Unregistered LandVacant possession means the property is empty on completion, with no tenants or belongings left behind. Under the Renters' Rights Act 2025, regaining possession to sell means using Ground 1A with at least four months' notice, so many landlords now sell with tenants in place instead.
Read the full entry: Vacant PossessionLetting and selling existing residential property is exempt from VAT, so landlords do not charge VAT on rent or the sale price but cannot reclaim VAT on their costs. Commercial property is different: if the owner has opted to tax, VAT is charged, though a tenanted sale can often be a transfer of a going concern outside VAT.
Read the full entry: VAT and PropertyA void period is the time a rental property stands empty between tenancies. During a void the landlord earns no rent but still pays the mortgage, council tax, utilities and insurance, so frequent or long voids cut the real yield and lower what investors will pay.
Read the full entry: Void PeriodsMost of this A to Z describes England. Wales has its own tenancy law (occupation contracts under the Renting Homes (Wales) Act 2016), Rent Smart Wales registration and Land Transaction Tax. Scotland has private residential tenancies, landlord registration and Land and Buildings Transaction Tax. Capital Gains Tax applies across the UK.
Read the full entry: Wales and Scotland DifferencesReplacement of domestic items relief lets residential landlords deduct the cost of replacing furniture, furnishings, appliances and kitchenware in a let home. It replaced the 10% wear and tear allowance in April 2016. Only replacements qualify, not the first purchase, and any upgrade element is not allowed.
Read the full entry: Wear and Tear (Replacement of Domestic Items Relief)Under the Renters' Rights Act 2025, landlords must give tenants of new tenancies a written statement of the main terms. For tenancies that existed before 1 May 2026, written tenancies needed the government's information sheet by 31 May 2026, and verbal tenancies needed a written statement. Penalties are up to £7,000.
Read the full entry: Written Statement of TermsA title plan is the HM Land Registry map showing the extent of a registered property, usually edged in red. It shows general boundaries only, not the exact line of a fence or wall. Plans that do not match what is on the ground are a common cause of questions when a property is sold.
Read the full entry: X Marks the Spot: Title Plans and BoundariesThe UK tax year ends on 5 April. For landlords selling property, which side of that date contracts are exchanged decides which year's allowances and rates apply to the gain. Planning a sale around the year end can make better use of allowances, but should not drive a bad commercial decision.
Read the full entry: Year-End Tax Planning (5 April)A zero deposit or deposit replacement scheme lets a tenant pay a smaller, non-refundable fee instead of a cash deposit, with the provider covering the landlord for unpaid rent or damage up to an agreed limit. The tenant remains liable for any claim. When a property is sold, the cover may not pass to the buyer automatically.
Read the full entry: Zero Deposit SchemesGeneral information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
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