Property Investment Glossary
Key UK buy-to-let and investment terms in plain English.
Gross Yield
Gross rental yield is annual rental income divided by the property purchase price, expressed as a percentage.
It does not account for running costs.
A gross yield above 6% is generally considered strong in UK buy-to-let.
Net Yield
Net yield deducts all costs — mortgage payments, maintenance, letting agent fees, insurance, and void periods — from the rental income before calculating the return.
This is the number that tells you what you actually keep.
HM Land Registry
HM Land Registry is the UK government body that records property ownership and sale prices in England and Wales.
Every registered sale is publicly available and forms the backbone of property price data in the UK.
Ofsted Rating
Ofsted inspects and rates schools in England on a scale from Outstanding to Inadequate.
Properties near Outstanding-rated schools consistently command higher rents and sale prices.
Capital Growth
Capital growth is the increase in a property's market value over time.
Combined with rental yield, it determines the total return on a property investment.
Loan to Value (LTV)
LTV is the ratio of your mortgage to the property value.
A £150,000 mortgage on a £200,000 property is 75% LTV.
Lower LTV typically means better mortgage rates and lower risk.
HMO
A House in Multiple Occupation is a property rented to three or more people who are not from the same household.
HMOs typically produce higher yields but require additional licensing and management.
Automated Valuation Model (AVM)
An AVM uses algorithms and comparable sales data to estimate a property's current market value without a physical inspection.
The 2 Minutes Responder uses AVM methodology as one of its five scoring inputs.
Void Period
A void period is time when a rental property sits empty with no rental income.
Even one month of voids per year can reduce your effective annual yield by 8%.
PropScore
PropScore is 2MR's proprietary 0-100 investment score combining location quality, rental yield, capital growth potential, risk exposure, and market demand into one decisive number.
Flood Risk Zone
The Environment Agency classifies UK land into flood risk zones based on probability of flooding.
Zone 3 (high risk) can affect mortgage availability, insurance costs, and property value.
Rental Demand
Rental demand measures the ratio of available rental properties to active tenant enquiries in a given area.
High demand with low supply signals strong yield potential and short void periods.