When a property increases in value over time, it is known as capital growth. Capital growth also known as capital appreciation, is the price appreciation on an investment relative to the amount which was initially invested. For example, if a property was bought for £100,000 and the value increased to £150,000, the capital gains yield is 50%. Capital gains yield = (market price of a property – original purchase price) divided by original purchase price x 100
This 'Glossary of Terms' – those commonly used in the realm of property auctions, is monitored and updated regularly to remain a current reference point.
If there are any terms that you have come across which we have not included here and you are unclear about, please do get in touch and we will be happy to provide you with a clear explanation and add the new term to our list.
For more information on buying or selling at a property auction, have a read of our guide to buying at auction.