Lettings glossary: key terms for UK letting agents

This glossary defines the terms UK letting agents use every day, in plain English and up to date for the Renters' Rights Act changes that took effect on 1 May 2026. It covers client money, tenancies and the law, compliance and safety, repairs and inspections, and the software and service models agencies use to run it all. Where a term deserves more than a paragraph, it links to a full guide.

Rules here are for England unless stated; Scotland, Wales and Northern Ireland have their own regimes. This is general information, not legal advice.

Client money terms

Client money

Money an agent holds on behalf of someone else — rent collected for landlords, deposits not yet protected, money held for repairs. It is not the agency's money, and it must be kept separate from the agency's own funds.

Client account

A bank account that holds client money and nothing else, kept separate from the agency's business (office) account. Banks usually designate it as a client account so funds are recognised as belonging to the agency's clients.

Client accounting

The bookkeeping behind client money: recording every receipt and payment against the right landlord and tenancy, producing landlord statements, paying out, and proving the books balance. See client accounting for letting agents.

Client Money Protection (CMP)

Letting agents in England that hold client money must belong to a government-approved Client Money Protection scheme. It reimburses landlords and tenants if an agent misuses or loses their money. Our guide explains how Client Money Protection works.

Reconciliation (three-way reconciliation)

Checking that three things agree to the penny: the client bank balance, the client ledger in your system, and the total of the individual landlord ledgers. Any difference has to be found and explained. See how to reconcile client money.

Landlord statement

The regular statement a landlord receives showing rent collected, deductions such as fees and repair costs, and the amount paid out to them.

Arrears

Rent that is due but unpaid. Good practice is to chase early and on a fixed timetable — see how to reduce rent arrears.

Holding deposit

A payment to reserve a property while referencing is done. Under the Tenant Fees Act 2019 it is capped at one week's rent.

Tenancy deposit

The security deposit paid at the start of a tenancy. It is capped at five weeks' rent where the annual rent is under £50,000, and six weeks' where it is £50,000 or more.

Deposit protection

A deposit taken for an assured tenancy must be protected in one of the government-approved schemes — the Deposit Protection Service (DPS), mydeposits or the Tenancy Deposit Scheme (TDS) — within 30 days of receiving it, and the tenant must be given the prescribed information.

Deposit replacement scheme

A product that lets a tenant pay a non-refundable fee instead of a cash deposit, with the provider covering the landlord. The tenant stays liable for any valid claim. It is lawful only as an optional alternative to a deposit. See deposit replacement schemes.

Prescribed information

The details about the deposit and the scheme protecting it that must be given to the tenant once the deposit is protected.

Tenancy and legal terms

Renters' Rights Act 2025

The law that reformed private renting in England. It became law on 27 October 2025, and its core tenancy reforms took effect on 1 May 2026; further measures are being phased in. See the Renters' Rights Act for letting agents.

Assured periodic tenancy

Since 1 May 2026, the single type of private tenancy in England. It rolls on from period to period with no fixed end date and continues until it is ended properly — by the tenant giving notice or the landlord using a legal ground for possession.

Assured shorthold tenancy (AST)

The standard private tenancy in England until 1 May 2026, usually with a fixed term. Under the Renters' Rights Act, existing ASTs converted to assured periodic tenancies, and fixed terms ended.

Section 21

The "no-fault" route a landlord could use to end a tenancy without giving a reason. It was abolished from 1 May 2026.

Section 8

The route for a landlord to seek possession on a specific legal ground, such as rent arrears, selling the property or moving in. Since Section 21 was abolished, every possession claim runs through Section 8, and each ground has its own notice period and evidence requirements. See the tenant eviction procedure.

Section 13

The statutory process for increasing rent on a periodic tenancy. Rent can be raised once a year this way, and the tenant can challenge an above-market increase at the First-tier Tribunal. See rent increases under the Renters' Rights Act.

Tenant's notice

Under the Renters' Rights Act, a tenant can end their tenancy at any time by giving two months' notice.

Written statement of terms

Since 1 May 2026, the written information a landlord must give a tenant about their tenancy before it is entered into. It can form part of the tenancy agreement. The government's How to Rent guide was withdrawn on the same date.

Pet requests

Under the Renters' Rights Act, a tenant can ask in writing to keep a pet, and the landlord must reply within 28 days and must not unreasonably refuse. See pets in rented property.

Rental bidding

Inviting or accepting offers above the advertised rent. Since the Renters' Rights Act it is unlawful: agents must advertise a rent and cannot accept more than it.

Rent in advance

Rent paid before it falls due. The Renters' Rights Act caps how much can be required up front, so large advance payments no longer work as a screening tool. See the rent in advance rules.

Right to Rent

The legal requirement for landlords and agents in England to check that adult occupiers have the right to rent in the UK before a tenancy starts.

Referencing

Checks on a prospective tenant's identity, income, affordability, credit history and previous tenancies, usually carried out before a tenancy is agreed.

Guarantor

A person who agrees to pay the rent, or cover other obligations, if the tenant does not.

Tenant Fees Act 2019

The law that banned most fees letting agents and landlords can charge tenants in England, capping holding deposits and tenancy deposits and limiting other permitted payments.

Redress scheme

Letting agents in England must belong to a government-approved redress scheme, which handles complaints the agency cannot resolve. The Renters' Rights Act adds a separate PRS Landlord Ombudsman for private landlords.

PRS Database

The national Private Rented Sector Database created by the Renters' Rights Act, where landlords will register themselves and their properties. Registration is due to open on 15 December 2026, starting in the West Midlands and rolling out region by region, at £65 per property per year; every actively let property must be registered by 14 November 2027. See what letting agents must do before the PRS Database goes live.

Decent Homes Standard (private rented sector)

A minimum condition standard for rented homes, being extended to the private rented sector as a later phase of the Renters' Rights Act reforms.

Awaab's Law (private rented sector)

Legal timescales for investigating and fixing serious hazards such as damp and mould, being extended to the private rented sector as a later phase of the reforms.

Compliance and safety terms

Gas Safety Certificate (CP12)

The record of the annual gas safety check, which must be done by a Gas Safe registered engineer. A copy goes to existing tenants within 28 days and to new tenants before they move in. See gas safety, EICR and EPC deadlines.

EICR (Electrical Installation Condition Report)

The report on a property's fixed electrical installation, required at least every five years (or sooner if the report says so), with a copy given to tenants within 28 days.

EPC (Energy Performance Certificate)

A rating of a property's energy efficiency, from A to G, valid for ten years. A property generally needs an EPC to be let.

MEES (Minimum Energy Efficiency Standards)

The rules setting the lowest EPC rating a privately rented home can have and still be let — currently E, subject to exemptions, rising to C for every tenancy by 1 October 2030 under the government's confirmed plans. See EPC rating for landlords.

Smoke and carbon monoxide alarms

In England, a smoke alarm is required on every storey used as living accommodation, and a carbon monoxide alarm in any room with a fixed combustion appliance (excluding gas cookers). They must be working on the day a tenancy starts.

Legionella risk assessment

Landlords have a duty to assess and control the risk of Legionella bacteria in a property's water system. For most homes this is a straightforward assessment, reviewed when the system or its use changes.

HMO (House in Multiple Occupation)

A property let to three or more people forming more than one household who share facilities such as a kitchen or bathroom. Larger HMOs — five or more people from two or more households — need a mandatory licence, and councils can require additional or selective licences in their area.

Compliance calendar

A schedule of every recurring certificate, check and renewal across a portfolio, so nothing lapses. See our lettings compliance calendar or how Solace runs compliance management.

Repairs, inspections and condition

Inventory (schedule of condition)

A detailed, usually photographic record of a property's contents and condition at the start of a tenancy. It is the evidence against which the property is compared at check-out.

Check-in and check-out

The visits at the start and end of a tenancy where the inventory is agreed and then compared, to identify any damage beyond fair wear and tear.

Fair wear and tear

The natural deterioration of a property from normal, reasonable use over time. It cannot be charged to a tenant's deposit; damage beyond it can.

Periodic inspection

A routine visit during a tenancy, typically every three to six months, to check the property's condition, spot maintenance issues early and confirm it is being looked after. See the periodic inspection report guide or how Solace runs periodic inspections.

Works order

An instruction to a contractor to carry out a repair, setting out the job, the property, access arrangements and the approved cost.

Void period

The time a property sits empty between tenancies, earning no rent.

Service levels and software

Let only

A service where the agent finds a tenant and sets up the tenancy, then hands over to the landlord to manage it.

Rent collection

A service where the agent finds the tenant and collects the rent, but the landlord handles repairs, compliance and inspections.

Fully managed

A service where the agent handles everything after the let: rent and client accounting, repairs, compliance, inspections and the relationship with the tenant.

Managing agent

The agent responsible for the day-to-day management of a let property on the landlord's behalf.

Property management software

Software that runs what happens after a property is let — rent and client accounting, repairs, compliance certificates, inspections and renewals. Compare the main options in our guide to property management software in the UK.

Lettings CRM

Software that runs the front of a lettings business: applicants, viewings, landlords, listings and offers. Many agency platforms combine a CRM with property management.

Automated property management

Using software to carry out routine property management work automatically — matching rent payments, chasing arrears, prompting renewals, triaging repairs — rather than only recording it. Solace pairs this with a UK team that handles the judgement calls; see Solace's property management software.

Making Tax Digital for Income Tax

HMRC's requirement for landlords and sole traders above an income threshold to keep digital records and send quarterly updates. It applies from April 2026 to those with qualifying income over £50,000, with the threshold falling in later years.

Frequently asked questions

What is the difference between client money and a client account?

Client money is the money itself — rent, deposits and other funds held for landlords and tenants. A client account is the separate bank account it must be kept in, apart from the agency's own funds.

What replaced the assured shorthold tenancy?

From 1 May 2026, the assured periodic tenancy. Existing ASTs converted automatically, fixed terms ended, and Section 21 was abolished.

What does a letting agent have to protect by law?

In England: client money, through membership of an approved Client Money Protection scheme; tenancy deposits, in a government-approved deposit scheme within 30 days; and complaints, through an approved redress scheme.

If keeping on top of all of this is the problem rather than understanding it, see how Solace runs back office support for letting agents, or book a demo.