Is Property Investment Still the Best Long-Term Investment in the UK?

When it comes to building wealth, property investment has long been a cornerstone of financial planning in the UK. For decades, it’s been seen as a safe, reliable, and lucrative way to grow your money over time. But with changing economic conditions, rising interest rates, and shifting market dynamics, you might be wondering: is property investment still the best long-term investment in the UK?

This post will look into the pros, cons, and alternatives to help you make an informed decision on whether you should put your money in investment property or not for your long term goals. Read on.

Why Property Investment has been a Go-To Strategy for Many

Property investment has been a favorite for good reason. Unlike stocks or cryptocurrencies, investment properties are a tangible asset – giving many investors a sense of security.

Another advantage is the potential for rental income. If you buy a property and rent it out to one tenant or more, you can generate a steady cash flow while the property appreciates in value. This dual benefit—capital growth and rental income—makes real estate investment particularly attractive.

Besides, you can do fractional ownership. What is fractional ownership? It’s when you and other persons invest for a portion of a real estate property instead of assuming solo ownership. This significantly lowers the entry bar imposed on first-time investors with limited funding.

Plus, real estate investing is often considered an effective hedge against inflation. As living costs rise, so do rents and property values, helping you maintain your purchasing power.

The Challenges of Property Investment Today

While real estate investments have their perks, it’s not without their challenges.

One of the biggest hurdles right now is affordability. Property prices in the UK have soared in recent years, making it harder for first-time investors to enter the market. Even if you can afford the initial purchase, you’ll need to factor in additional costs as well. Luckily, there are useful sites out there; check out PropNerd and others that provide useful tips for property investing made easy.

Rising interest rates are another concern. If you’re taking out a mortgage to finance your investment, higher rates mean higher monthly payments. This can eat into your rental income and reduce your overall returns. Additionally, the UK government has introduced stricter regulations for landlords, including changes to tax relief and energy efficiency requirements. These rules can increase your costs and complicate your investment strategy.

Finally, rental properties aren’t liquid. If you need cash quickly, selling a property can take months, especially in a slow market. This lack of flexibility can be a drawback if you’re looking for more agile investment options.

How Does Property Compare to Other Investments?

To determine whether real estate property is still the best long-term investment, it’s worth comparing it to other options.

To begin, the stock market has historically delivered strong returns. Unlike property, stocks are highly liquid, meaning you can buy and sell them quickly. However, the stock market can be volatile, and there’s no guarantee of returns. If you’re risk-averse, this might not be the best fit for you.

Meanwhile, bonds can be a good option for diversifying your portfolio, but they’re unlikely to deliver the same level of long-term growth as property.

Cryptocurrencies, on the other hand, have gained popularity in recent years, with some investors seeing massive returns. Yet the crypto market is highly speculative and prone to extreme volatility. If you’re looking for a stable, long-term investment, cryptocurrencies might not be the best choice.

Finally, contributing to a pension fund is another way to build wealth over time. With tax relief and employer contributions, pensions can offer significant benefits. But you won’t have access to your money until retirement, which limits your flexibility.

Each of the abovementioned has its pros and cons, but investing in property stands out for its combination of stability, income potential, and long-term growth.

Key Factors to Consider Before Investing in Property

If you’re thinking about investing in property, there are several factors to keep in mind:

First, the success of your investment largely depends on where you buy. Look for areas with strong demand, good transport links, and potential for growth. Cities like Manchester, Birmingham, and Leeds have seen significant investment in recent years, making them attractive options.

Next, look at your financial standing. Property investment requires a significant upfront investment. Make sure you have a solid financial plan in place, including a buffer for unexpected expenses. In addition, it’s a good idea to speak with a financial advisor to assess your readiness.

Then, keep an eye on the property market and broader economic conditions. Rising interest rates, changes in government policy, and shifts in demand can all impact your investment. Staying informed will help you make smarter decisions.

And lastly, property is a long-term investment, so it’s important to align it with your financial goals. Are you looking for rental income, capital growth, or both? Understanding your objectives will help you choose the right property and strategy.

The importance of finding the right tenants

While it’s important to choose the right property, it’s also important to take on the right tenants. An efficient tenant screening system needs to be in place to make sure that you take on tenants who are going to keep up with rent and not damage the property.

It could be worth working with a tenancy agency to help you source tenants. An agency can help carry out screening procedures such as doing credit checks, asking for landlord references and collecting guarantor signatures.

Rental application software could also be worth investing in. This can provide a digital platform through which tenants can file applications. You can then compare applicants and their information (such as their rental history) in order to choose the right tenant.

Closing Words

Property investment has been a cornerstone of wealth-building in the UK for decades, and for good reason. It offers tangible benefits like rental income, capital growth, and inflation protection. However, it’s not without its challenges, including rising costs and market volatility. By carefully considering your financial situation, goals, and the broader market, you can determine whether property is the right long-term investment for you.

Remember, the best investment strategy is one that aligns with your unique needs and circumstances. Whether you choose property, stocks, or a mix of both, the most important thing is to take action and start building your financial future today. After all, the sooner you begin, the more time your investments have to grow.

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Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
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More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

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If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.