Property Development Glossary UK

Forty terms used in UK property development appraisal, finance and planning. Pulls from RICS Red Book, lender credit-paper language, and NPPF / PPG-Viability framing.

GDV
Gross Development Value. Total resale value of the completed scheme.
GIA
Gross Internal Area. Inside the external walls, including circulation and structural elements.
NIA
Net Internal Area. Saleable area inside the unit; excludes walls, common parts, plant.
Net-to-gross
Ratio of NIA to GIA. Typically 80 to 90 percent depending on building form.
NDSS
Nationally Described Space Standard. Minimum dwelling and bedroom sizes.
BCIS
Building Cost Information Service. RICS-published tender-price index.
BCIS general
BCIS general building cost index. The headline £/sqm series.
Residual
Residual land value: GDV minus costs minus profit divided by (1 + SDLT).
Comparable method
Land valuation by reference to recent transactions for similar sites.
PoC
Profit on cost: (GDV minus costs) divided by costs.
PoGDV
Profit on GDV: (GDV minus costs) divided by GDV.
LTGDV
Loan to gross development value. Senior cap typically 60 to 65 percent.
LTC
Loan to cost. Senior cap typically 75 to 80 percent.
Senior debt
First-charge development facility. Lowest cost, lowest LTV.
Mezzanine
Second-charge debt. 12 to 18 percent all-in Q2-2026.
Pref-equity
Investor capital ranking behind both senior and mezz; takes equity not a charge.
IRR
Internal rate of return. The discount rate at which NPV equals zero.
BNG
Biodiversity Net Gain. Statutory 10 percent gain over baseline since 12 Feb 2024.
CIL
Community Infrastructure Levy. Tariff per sqm of net additional floorspace.
Section 106
Planning obligation: site-specific contributions or affordable housing.
SDLT
Stamp Duty Land Tax. England and NI.
LBTT
Land and Buildings Transaction Tax. Scotland.
ADS
Additional Dwelling Supplement. Scotland LBTT 8 percent surcharge.
LTT
Land Transaction Tax. Wales.
MDR
Multiple Dwellings Relief. Abolished 1 Jun 2024.
MRICS
Member of the Royal Institution of Chartered Surveyors.
RICS Red Book
RICS Valuation Global Standards. Mandatory framework for regulated valuations.
PPG
Planning Practice Guidance. Live online guidance supplementing NPPF.
PPG-Viability
PPG section on viability assessment. References 17.5 percent PoGDV benchmark.
NPPF
National Planning Policy Framework. Dec-2025 revision in force.
Class O
PDR class for office-to-residential conversion. Now subsumed under Class MA in most cases.
Class MA
PDR commercial / business / service (Class E) to C3. In force 1 Aug 2021.
Class Q
PDR agricultural building to dwelling. Up to 10 dwellings, 150 sqm cap.
S-curve
Drawdown profile: slow start, rapid mid-build, slow tail.
Monitoring surveyor
Lender-appointed surveyor reporting on draw stages and cost overruns.
Practical completion
Building complete and capable of beneficial occupation; certified by the contract administrator.
Arrangement fee
Up-front lender fee, typically 1 to 2 percent of facility.
Exit fee
Lender fee at redemption, typically 1 to 2 percent of facility.
Pref
Preferred return in a JV waterfall. Investor receives this before split kicks in.
Promote
Developer's enhanced share above an investor hurdle.
RICS Valuation Global Standards (Red Book)· Effective 31 Jan 2025Appraisal model reviewed by Oliver Wakefield-Smith (data integrity) with chartered-surveyor (MRICS) and CTA tax review. No affiliate links.