Estate Agent Glossary: Common UK Property Terms Explained

Buying, selling, or renting a property can be confusing with all the jargon involved. Here’s a comprehensive glossary of the most common UK estate agent property erms to help you navigate the process.

General Property Terms

• Freehold – You own both the property and the land it stands on.

• Leasehold – You own the property but not the land, typically for a set number of years (e.g., 99 or 125 years).

• Chain – A series of property transactions linked together, where each sale depends on another.

• Gazumping – When a seller accepts a higher offer from another buyer after already agreeing on a lower one.

• Gazundering – When a buyer lowers their offer just before contracts are exchanged.

• Under Offer – A property where an offer has been accepted, but contracts haven't been exchanged yet.

• SSTC (Sold Subject to Contract) – The seller has accepted an offer, but the legal process is not yet complete.

• Exchange of Contracts – The legal step where both buyer and seller commit to the sale.

• Completion – The final step where ownership officially transfers to the buyer, and keys are handed over.

Valuation & Pricing Terms

• Asking Price – The price the seller hopes to achieve for the property.

• Guide Price – A rough price indication, often used for auction properties or competitive markets.

• Market Value – The estimated price a property would sell for in the current market.

• Overpriced – A property listed above its market value, making it harder to sell.

• Undervalued – A property priced below market value, often for a quick sale or auction.

Mortgage & Finance Terms

• Agreement in Principle (AIP) – A lender's initial indication of how much they’re willing to lend. Also called a Decision in Principle (DIP).

• Conveyancing – The legal process of transferring property ownership from seller to buyer.

• Deposit – The upfront amount a buyer puts down (usually 5–20% of the purchase price).

• Equity – The difference between the property’s market value and the remaining mortgage balance.

• LTV (Loan-to-Value Ratio) – The percentage of the property’s value covered by the mortgage (e.g., 80% LTV means the buyer is borrowing 80% of the price).

• Stamp Duty – A tax paid by buyers on properties above a certain price threshold. First-time buyers may be eligible for discounts.

Rental Terms

• AST (Assured Shorthold Tenancy) – The most common type of rental agreement in the UK.

• Guarantor – A person who agrees to pay the rent if the tenant is unable to.

• HMO (House in Multiple Occupation) – A rental property shared by three or more tenants who aren’t from the same household.

• Deposit Protection Scheme (DPS) – A government-backed scheme that holds a tenant’s deposit securely until the end of the tenancy.

• Break Clause – A clause that allows a tenant or landlord to end a tenancy early, subject to conditions.

Property Types & Features

• Detached – A house that is completely separate from other properties.

• Semi-Detached – A house that shares one wall with another property.

• Terraced – A house that is part of a row of connected properties.

• End-of-Terrace – The last house in a row of terraced homes.

• Maisonette – A flat with its own private entrance, often spread over two floors.

• Studio Flat – A single-room apartment where the living space and bedroom are combined.

• New Build – A newly constructed property, often sold off-plan before completion.

  
  

Understanding these terms will make your property journey smoother, whether you’re buying, selling, or renting. If you have any questions or need expert guidance.

Find out what a Property Conveyancer does.