FAQs
Is UK property still a good investment?
Absolutely. UK property remains a strong investment choice, delivering an average annual return of 9.6% since 1997.
Property prices are projected to rise by around 21.6% across the UK between 2025 and 2028, with rental income expected to grow by approximately 18.8% in the same period.
Additionally, certain cities and regions offer rental yields as high as 8%, making property investment an attractive option.
What are the best places in the UK to invest in property?
We see strong growth opportunities in the Midlands, Northeast, and Northwest. Key cities to consider include Liverpool, Nottingham, Manchester, Leeds, Birmingham, and Reading, where property values and rental demand continue to rise.
Does owning UK property make me a tax resident?
Not necessarily. Your tax residency depends on how much time you spend in the UK. If you live abroad but own UK property, you may still have to pay UK income tax on rental earnings, depending on your setup.
While some people worry about taxes, it’s important to see the bigger picture—paying tax means you're making money!
Is yield or capital appreciation more important?
Both are important, and it depends on your goals and time frame. A good buy-to-let property should ideally strike a balance between yield and capital appreciation.
Higher-value properties, typically in London and the Southeast, tend to offer greater capital appreciation but lower yields.
More affordable properties, such as those in the North and Midlands, generally provide lower capital appreciation but higher rental yields.
For example, a £1m property appreciating by 5% earns £50k, while a £100k property appreciating by 5% earns £5k.
If you're looking to retire and live off rental income, higher yields may be more important.
If your goal is to build equity and eventually sell for a profit, capital appreciation might be the better focus.
Should I just own property, or invest in other assets as well?
For long-term financial stability, it's wise to diversify your income sources. A great principle is to create multiple streams of income rather than relying solely on property.
Examples of income streams include:
Property investments
Another property
Your salary
A company pension
A state pension
Income from stocks and shares
Business interests
Alternative investments
Building wealth takes time, so focus on mastering one asset class before diversifying into others. Whether you start with property and move into stocks, or vice versa, diversification is key.