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Every term, plainly defined
UK housing runs on acronyms. If you are new to the sector — and especially if you are investing from outside the UK — this page defines every term used across this site and in every property pack.
30 terms, in the order you are likely to meet them. Nothing here is jargon for its own sake — each of these appears in a real lease, a real legal pack or a real conversation with an adviser.
Transitional housingA form of supported housing providing stable, well-managed homes with light-touch support for people moving toward independent living — for example care leavers, people leaving domestic violence, or households on a local authority waiting list. It is not a care home, a hostel or an HMO, and it does not involve 24-hour care.
Supported housingAn umbrella term for housing provided alongside some level of support, supervision or care. It ranges from light-touch transitional housing through to intensively supported accommodation. The level of support affects how housing costs are assessed and funded.
Supported livingHousing where a person has their own tenancy and receives care or support to live independently. Often used interchangeably with supported housing in investment marketing, though the two are not technically identical.
Assisted livingAccommodation with an on-site care element, typically for older people. Transitional housing is not assisted living — there is no 24-hour care component — although investors searching for one often mean the other.
Exempt accommodationA category of supported accommodation where housing costs are assessed differently from ordinary rented housing, because the landlord is a specified type of body providing care, support or supervision. Assessment is against actual eligible costs rather than being capped at the Local Housing Allowance rate.
Pass-through leaseA lease under which the landlord's income derives from the property's actual income after operating and service-charge costs have been funded, rather than from a fixed rent promised by the operator. Income is reported monthly and moves with real occupancy and performance.
Guaranteed rentAn arrangement where an operator promises a fixed rent regardless of occupancy or underlying income. The promise is backed by the operator's balance sheet rather than by the property. Widely used in UK supported housing before a wave of scheme failures between roughly 2018 and 2022.
FRI leaseFull Repairing and Insuring lease — a commercial lease structure under which the tenant takes responsibility for repairs and insurance. Often paired with a fixed rent in supported housing offers. A different and, in our view, inferior structure to pass-through.
FreeholdOutright, permanent ownership of a property and the land it stands on, registered in your name at HM Land Registry. Distinct from leasehold, where you own a time-limited interest granted by a freeholder.
Local AuthorityA local council in the UK, responsible among other things for housing. English local authorities carry a statutory duty to help people who are homeless or at risk of homelessness. There are 317 local authorities in England.
Registered Provider (RP)An organisation registered with the Regulator of Social Housing to provide social housing — typically a housing association, charity or specialist provider. An RP may provide governance, compliance and claim oversight within a supported housing structure.
Universal CreditA UK government welfare payment that replaced several older benefits. For eligible claimants it can include a housing element that contributes toward rent.
Housing BenefitAn older form of housing support, still used in many supported and exempt accommodation cases, helping eligible people pay their rent.
DWPThe Department for Work and Pensions — the UK government department responsible for welfare policy and payments, including the housing support that ultimately funds rent in this sector.
Local Housing Allowance (LHA)The rate used to cap housing support for most private renters in a given Broad Rental Market Area. Supported and exempt accommodation is assessed differently, against actual eligible costs rather than the LHA cap.
Broad Rental Market Area (BRMA)The geographical area used to set Local Housing Allowance rates. Most County Durham properties fall within the Durham BRMA, but this should be confirmed by postcode for each specific property.
Management agreementThe contract under which a specialist operator manages the property — referrals, rent and service-charge administration, repairs, compliance and tenant welfare. In this structure the agreement runs for 25 years.
Head leaseA lease granted over the property to a counterparty who may then arrange occupation. Confirm the identity and standing of the head-lease counterparty in each property's legal pack.
Service chargeThe mechanism funding maintenance, insurance, tenant support, compliance, management, utilities, void provision and repairs. Costs are funded from the service charge before landlord rent passes through.
Sinking fundA reserve built from unspent service-charge budget and retained for future works. Where expenditure comes in below budget the balance may instead be returned to the landlord.
Ring-fenced client accountA bank account holding rental income separately from the operator's own working capital, before costs are deducted and net income is paid to the investor. It supports clean monthly reporting and separation of funds.
VoidA period during which a property is unoccupied and therefore producing no housing-cost income. Portfolio data indicates typical voids of about one week per year on a 600-unit transitional sample.
OccupancyThe proportion of time a property is occupied by an eligible resident. Under a pass-through lease this is the single largest driver of running yield.
Decent Homes StandardThe UK government's minimum benchmark for housing condition, covering repair, facilities, thermal comfort and freedom from serious hazards. Every home is refurbished to this standard before occupation.
Target net yieldAnnual net income as a percentage of purchase price, after operating costs are funded through the service charge. A target is an objective, not a promise — actual running yield varies with occupancy and operational performance.
Gross yieldAnnual rent as a percentage of purchase price, before costs. Most advertised UK property yields are gross, which is why they are not directly comparable with a net figure.
CPI+1%The annual upward-only rent review mechanism in the lease: the Consumer Prices Index plus one percentage point, subject to the lease and legal pack.
ASTAssured Shorthold Tenancy — the standard form of private residential tenancy in England and Wales, under which many eligible residents occupy.
SDLTStamp Duty Land Tax — the UK tax payable on property purchase. Non-resident purchasers pay an additional 2% surcharge. Rates and thresholds change; take independent tax advice.
Non-Resident Landlord Scheme (NRLS)The HMRC scheme governing how UK rental income is taxed when the landlord lives overseas. Allowable deductions such as management costs and service charges reduce the taxable amount.
A note on terminology in marketing. “Supported living”, “assisted living”, “social housing” and “transitional housing” are used loosely and sometimes interchangeably in investment material. They are not the same thing, and the differences affect how income is assessed and funded. If an offer is vague about which category a property falls into, that vagueness is itself information. We decode the terminology in full here.
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