Retail Chains glossary

A ¦ B ¦ C ¦ D ¦ M ¦ M ¦ V ¦

Advisory

Investment decisions or equity research performed through direct control of consumer funds or through written publications, in order to enhance business.

Asset

A property element owned by an entity or corporation that is deemed to be of value and available to satisfy debts, obligations, or legacies.

Breaking the chain

When the purchase or sale of a house no longer depends upon the purchase or sale of any other property, it is called breaking the chain. For example, when an individual moves from their house into an existing household or to a temporary accommodation until they can buy a new house, they vacate their own house without creating a demand for a new one. Thus, the demand and supply chain is broken.

Buy to leave

When a residential property is purchased and left empty deliberately, it is known as buy to leave. In this case, the purchase is made without making any immediate use of the property.

Buy to let

Any residential property that is purchased for the purpose of renting it out is called buy to let. Here, the owner makes the purchase and directly rents it to someone without any personal usage.

Chain

House purchases often get linked to each other. When a person wishes to move into a new house, they are likely to sell their old house. The moving into a new house of the individual depends upon them receiving the money from the old house to invest in a new house. This forms a chain, such that the selling of a house depends upon the buying of another and so on.

Chain-free property

The chain depends both on the buyer receiving the expected capital and on the seller for buying the new house where they wish to move. If such a chain does not exist for a certain property, it is termed as a chain-free property. However, calculations say that only 10% of the properties in the UK are chain-free during transactions.

Divest

Doing away with the rights of possession of a property is called divesting. One usually divests when they sell their house, real estate property, or a business away to someone. Divest is an antonym to invest.

Make a chain

A chain begins when an individual decides to sell their property and purchase a new one. It is also made with first-time buyers that do not have an existing property to sell but demand a new property. With every new demand, a chain is made.

Vacancy Chain

When an individual moves out of their existing house and buys a new one to move into, they create a chain, wherein they can only move in a new house when they find one, and the one where they are moving, can only be empty when the owners there find an appropriate house. This chain that got triggered due to a vacancy is called vacancy chain.

Would you like to
Stay up to date with the latest
INSIGHTS ?