UK Property Development Glossary
Plain-English definitions of the 25 terms property developers, investors and BTL landlords meet most often when underwriting UK deals.
- Article 4 Direction
- A council-issued direction that removes specified permitted development rights in a defined area, often to require planning permission for HMO or other conversions. It applies to mapped areas and named rights, so it must be checked for the exact address.
- Building Safety Act Gateway
- The approval regime in England under the Building Safety Act 2022 for higher-risk buildings, generally those of at least 18m or 7 storeys with two or more homes. Gateway 1 applies at planning, Gateway 2 before building work and Gateway 3 at completion. Whether it applies depends on the building, its use and the work proposed, not on the council. Wales, Scotland and Northern Ireland have separate regimes.
- Class MA
- An English permitted development right under Class MA of the Town & Country Planning (General Permitted Development) (England) Order allowing change of use from Class E (commercial) to C3 (dwelling) via prior approval rather than a full application. It does not apply in Wales, Scotland or Northern Ireland.
- CIL (Community Infrastructure Levy)
- A charge that local authorities can levy on new developments per square metre of net additional floorspace. Rates vary by council and use class — Check the council's charging schedule for the current rate.
- Commercial-to-Residential
- Converting a commercial property (typically Class E offices, shops or light industrial) into residential use. In England this can use Class MA prior approval, subject to its conditions and limits. Elsewhere in the UK a full planning application is normally needed.
- EPC (Energy Performance Certificate)
- A statutory rating of a property's energy efficiency, A (best) to G (worst). Required to market a property and material for letting: privately rented property generally needs at least an E for a new tenancy. Proposals to raise standards are subject to government decisions and are not yet law.
- Freehold vs Leasehold
- Freehold means outright ownership of the land and building indefinitely. Leasehold means time-limited ownership of a unit (typically a flat) under a lease from the freeholder, with ground rent and service charges payable.
- HMO (House in Multiple Occupation)
- A property rented by three or more unrelated tenants forming two or more households who share kitchen or bathroom facilities. Large HMOs (5+ tenants) are mandatorily licensed; smaller HMOs may need additional or selective licensing.
- Land Assembly
- Combining adjacent plots — often under different owners — into a single developable site. Typically requires options agreements, conditional contracts or a strategic acquisition campaign.
- Listed Building
- A building protected under the Planning (Listed Buildings and Conservation Areas) Act 1990 because of its architectural or historic significance. Grade I, II*, II — alterations require Listed Building Consent.
- Permitted Development (PD)
- Categories of development that can proceed without a full planning application under a national permitted development order. England, Wales, Scotland and Northern Ireland each have their own order and limits.
- Prior Approval
- A lighter-touch planning consent process for some PD rights (e.g. Class MA, larger householder extensions). The council can only refuse on specified grounds — not on principle.
- PTAL (Public Transport Accessibility Level)
- A 0–6b score used in London to measure how well a site is served by public transport. Critical for planning policy compliance, density and parking standards.
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Sample dataOpen live Dashboard24 Coleherne Road
Quick stats
EPC rating, transport access, HMO density and flood risk at a glance.
Potential C with works.
Excellent
Moderate saturation.
low probability of flooding.
Sale history
Registered transactions and nearby comparables to benchmark the price.
- 18 Coleherne Road£1,975,0008 Feb 2024
- 31 Coleherne Road£1,690,00014 Sept 2022
- 9 Coleherne Road£1,545,0003 Nov 2021
- 24 Coleherne RoadSubject£1,850,00012 Apr 2019
- 24 Coleherne RoadSubject£1,420,0006 Jul 2011
Sample records styled on HM Land Registry Price Paid Data. Not real transactions.
Property fundamentals
Heritage, tenure and neighbourhood deprivation shape consent and buyer appetite.
Index of Multiple Deprivation, 1 = most deprived, 10 = least.
England's IMD ranks every neighbourhood from most to least deprived.
Kensington and Chelsea 012B. Urban conurbation, high-value Victorian terraces and strong rental demand.
Not listed, but alterations in a Conservation Area need full planning consent.
Listing and conservation designations restrict alterations.
Full ownership, no lease or ground rent liabilities.
Freehold means outright ownership of the building and land.
Royal Borough of Kensington and Chelsea
The authority whose planning policy applies to this plot.
Energy performance
Current rating and the cost and uplift of upgrading before selling or letting.
SAP score moves from 48 to 79 with the modelled works.
£18,200 to £28,600
Indicative spend to reach the potential band.
Greener-homes value premium per band achieved.
Estimated rent premium per band achieved.
£3,120 to £1,280
Heating, hot water and lighting after improvements.
- Air source heat pump£8,000 to £14,000saves £720/yr
- Solid wall insulation (external)£9,000 to £15,000saves £540/yr
- Secondary glazing£1,200 to £3,500saves £180/yr
Development potential
Planning risk, recommended route and a first-pass screen of permitted development rights.
Illustrative sample only. It assumes Conservation Area and Article 4 restrictions that limit permitted development. Extensions may need planning consent. Where an Article 4 direction removes C3 to C4 rights, an HMO conversion requires a planning application, not prior approval.
- The sample assumes an Article 4 direction removes Class L permitted development rights.
- Apply for planning permission; prior approval does not replace removed permitted development rights.
- Materials must match original Victorian stock.
- Anything above eaves height needs full consent.
- Class AA rights do not apply in designated Conservation Areas.
Sample first-pass screen. The live Dashboard checks the real constraints for any address.
Commercial and levies
Class MA, CIL, MEES and biodiversity net gain obligations.
Residential (C3). Class MA applies to commercial Class E only.
PD right to convert commercial premises to homes.
Verify against the current charging schedule.
Community Infrastructure Levy on new floorspace.
Sample EPC E. Commercial lets in England and Wales currently need at least EPC E, with exemptions. Domestic rules are separate, and proposed changes are not yet law.
Current rented non-domestic EPC rules in England and Wales are separate from proposed future standards. Check exemptions, use and jurisdiction.
Existing residential: negligible obligation unless adding new footprint.
Biodiversity Net Gain: a measurable 10% habitat improvement.
- S106 (Section 106 Agreement)
- A planning obligation under Section 106 of the Town & Country Planning Act 1990, used to secure affordable housing, public-realm contributions or transport improvements as a condition of planning consent.
- Title Splitting
- Dividing a single property title into multiple Land Registry titles — typically when converting a house into flats or a HMO. Requires separate leases, freehold management structure and Land Registry approval.
- Title Register
- The official HM Land Registry record of a property's ownership, tenure type, charges, restrictions and (where relevant) lease terms. HM Land Registry charges a fee per register, and it is the authoritative source of tenure information for England and Wales.
- BTR (Build-to-Rent)
- Purpose-built rental developments owned and managed long-term by a single institutional landlord, with shared amenities and on-site management — distinct from buy-to-let or PRS.
- PBSA (Purpose-Built Student Accommodation)
- Student housing developed and operated specifically for the student market. Often falls under sui generis use class with bespoke planning policy in university cities.
- Use Class
- The Town & Country Planning (Use Classes) Order classification system: C3 (dwelling), C4 (small HMO), Class E (commercial, business, services), F1/F2 (community), Sui Generis (one-off uses like HMO 7+).
- Conservation Area
- Areas designated by councils for special architectural or historic interest. Some permitted development rights are already restricted there, demolition needs consent and tree works are controlled. Article 4 directions are sometimes added.
- Green Belt
- Designated open land around some UK cities where development is restricted. In England the 2024 NPPF reforms introduced a 'grey belt' concept for limited release of lower-quality green-belt land; other nations have their own policy.
- Air Rights / Airspace Development
- Building additional floors above existing buildings — in England sometimes possible under upward-extension permitted development rights, subject to prior approval, height, daylight and structural checks. Elsewhere in the UK a planning application is normally required.
- Brownfield
- Previously developed land — typically former industrial, commercial or institutional sites. National policy strongly supports brownfield-first development to ease pressure on greenfield/Green Belt.
- Density (dph)
- Dwellings per hectare — the principal density metric for residential schemes. London Plan and most local plans set density ranges by PTAL and town-centre tier.
- Right to Build
- Self-build and Custom Housebuilding Act 2015 duty in England requiring councils to keep a register of demand and give enough development permissions to meet it.