Understanding Specific Terms Used In The Property Industry

Like all industries, investment property has its own long list of terms and vocabulary that goes straight over the head of anyone inexperienced in this area. When considering investing in property, it goes without saying that if you’re going to regularly be buying, selling or renting out properties then it is incredibly beneficial to understand at least the very basics of this jargon. 

To help anyone that is new to the industry or currently undertaking property investment training, the team here at Fielding Financial have put together a list of some of the most commonly used vocab, terms and phrases in the property industry. Keep reading today to get to grips with the language you’ll be hearing regularly. 

Stamp duty land tax (SDLT)

This is a type of tax that you must pay when purchasing a property over a certain price. It is payable when you buy a house, a flat, any other building or even a piece of land. You should always consider this when budgeting for a new investment.

Mortgage in principle 

You may hear this referred to as an agreement in principle, a decision in principle, an approval in principle or a mortgage promise. It is essentially an estimate of how much money you’ll be able to borrow from a lender for a mortgage. This estimate can help you to get an offer accepted on a property. 


This is also called capital and is the amount of money that you put into a property, this amount will go up over time as you continue to pay off your mortgage, the market value of the property increases. Simply put, it is how much money would be yours if you sold the property and paid off the mortgage. 

Negative equity

These are the words that no one investing in a property wants to hear. Negative equity is where the value of your property falls below the value of the mortgage you have taken out to purchase the property. It essentially means, if you sell the property you wouldn’t make enough to repay the mortgage. 

Pied à terre

Not only is this jargon but, it is also French. It translates to “foot on the ground” and is an expression that is used when referring to a property that is kept for temporary, occasional or even secondary use. 

Permitted development

When renovating a property, some of the work you wish to undertake will require planning permission but some of the work will fall under the category of permitted development. You can carry out any work in this category without having to apply for any kind of permission.

Below market value

This is relatively straightforward but is something that all property investors should know. It is a term used when a property is sold for a lower price than it is on the market for. If you can get a good property below market value it is great for an investment. 

Joint venture 

You will more than likely come across this term as an investor. It describes a business arrangement between two or more people where they essentially put their money together to purchase a property. 


In short, a guarantor is someone who guarantees to pay any debt for a borrower if they are unable to pay themselves. Sometimes you need a guarantor to be able to get a mortgage and often you need one in order to rent a property, especially if you have a bad credit rating. 

Progressing in the property industry

Hopefully, the guide above will help you understand more of what you hear on a day to day basis. It goes without saying that the more knowledge you have of the industry you’re entering into, the easier it will be to progress and succeed. So, if you’re looking to learn more about property investment in general, please visit the Fielding Financial website today. 

We are proud to be a property investment company that specialises in providing property investment beginners with a range of training and courses that they can undertake. No matter what your current level of industry knowledge and understanding may be, we have the perfect tools to help you along the way. So, instead of wondering how to get started in property investment, simply reach out to our team at Fielding Financial.  

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