The First-Time Buyer’s Jargon Buster: Property Terms You Need to Know
As a PR agency specialising in the property industry, we work with a wide range of clients from across the sector, from leading housing associations, housebuilders and master developers to property portals and estate agents.
A large amount of the work that we do is centred around first time buyers and their experience stepping onto the property ladder. Buying a home for the first time can feel very overwhelming - particularly when you have to navigate a lot of jargon!
New to the Faust team, I’ve also spent a few months getting to grips with some of the property industry lingo. Here are some of the key phrases that I’ve seen popping up in our clients’ work, which first time buyers should know:
1. Housing Association
A non-profit organisation providing affordable housing throughout the country, from five-bedroom homes to studio flats. Their homes are available through outright sale or schemes like Shared Ownership, Rent to Buy and London Living Rent.
2. Shared Ownership
A scheme that allows you to buy a percentage of a property (usually between 25% and 75%) while paying rent on the remaining share. You can increase your ownership over time through a process called staircasing, giving you the option to eventually own 100% of your home.
3. London Living Rent
Funded by the Mayor of London, London Living Rent is a government-backed scheme that enables you to rent a home at a discounted rate, helping you save additional money each month, which can go towards buying a home.
4. Rent to Buy
Similar to London Living Rent, Rent to Buy helps tenants across England save for a deposit to buy a home by offering properties at a discount, typically 20% below market rent.
5. Outright Sale
Buying a property outright means purchasing 100% of the home with or without a mortgage, rather than through a scheme like Shared Ownership.
6. Full Market Value
The total price of a property if you were to buy it outright, without any discounts or shared ownership schemes.
7. Flat Over Garage (FOG)
A type of property where the flat is built above a row of garages, often with parking or storage space beneath. These homes can be more affordable than traditional flats and may appeal to first-time buyers looking for something a little different.
8. Leasehold vs. Freehold
Buying a leasehold property means you own the property but not the land it sits on. You may have to pay ground rent and service charges, and your ownership is limited to a set number of years. However, if you buy a freehold property, you own both the property and the land outright, with no time restrictions or ongoing lease costs.
9. Service Charge
A fee paid by leasehold property owners (usually flats) to cover the maintenance of shared areas like hallways, gardens, lifts, and communal facilities.
10. Ground Rent
A charge leasehold homeowners may have to pay to the freeholder (landowner). Some new laws have reduced or eliminated these fees on new leases.
Understanding these terms will take some of the pressure off during your home-buying journey, helping you to confidently navigate mortgage applications, government schemes, and property listings.
Looking for more advice on buying your first home? Keep an eye on our blog for more expert insights!
Written by Olivia Bermingham