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Is owning a property still a good investment?

Journalist: Jess Sharp, Sky News

ended 03. December 2025

Hi

I'm working on a piece for the Sky News Money blog looking at whether property is still a good investment.

So, what do you think? 

Does the belief that a property can be your pension still stand, or is the situation changing? 

Thanks so much

Jess 

 

3 responses from the Newspage community

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Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
In England, the median home now costs around 8 times the median full-time salary. Meanwhile, the typical gross rental yield on a buy-to-let is about 7.3 per cent, while new buy-to-let mortgages carry interest rates near 5 per cent. That means rising financing costs and regulation are eating into returns, and the chances of strong capital growth look limited for many properties right now.

Property investment can still work, but only if investors are very selective about location, yield, and long-term fundamentals rather than assuming prices will keep rising.
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Scott Gallacher
Director at Rowley Turton
Buying your own home is usually a solid financial decision, but the idea that property can serve as your pension—especially via buy-to-let—is increasingly hard to justify. Historically, most gains came from gearing: borrowing through a mortgage to amplify returns in a rising market. That worked when costs and interest rates were low, but it also magnified risks. Today, landlords face high upfront costs, tighter regulation, lower yields, maintenance issues and potential tenant problems. Capital is locked in unless you sell, triggering fees and up to 24% capital gains tax. By contrast, pensions offer tax relief, tax-free growth, low upfront costs and far less hassle. Property still has a place, but relying on it as a pension is looking increasingly outdated.
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Gosia Dawson
Director at Glade Financial
Property has long been seen as a “safe” investment and, for many, a substitute pension. But the landscape has shifted. With pensions now set to fall within the scope of IHT, one of the major advantages they held over property has narrowed. Yet despite this, buy-to-let faces its own pressures: new Income Tax on rental profits, stronger tenant protections, rising costs and the CGT changes all significantly impact returns.
For many, the balance has shifted. Property is no longer the simple, high-yield investment it once was; it now requires careful planning and a willingness to take on greater responsibilities. Understanding how tax interacts with your income, pension planning and long-term goals is essential. Property can still play a role, but it is rarely the “best” standalone investment and should be considered as part of a broader, diversified strategy.
The key message holds: property isn’t dead, but the “property as your pension” belief needs a serious update.