Is Property Investment Worth It? 2024 Guide for UK Investors

16 June 2023

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If you found your way to this post, chances are you’re contemplating investing into real estate property. Understandably, it’s a big decision, and you probably have a million questions running through your mind.

Is property investment worth it?

Can I make money?

What are the risks?

Agreeably, the UK real estate world can sometimes seem complicated; we understand your plight and are glad to say that we’ve got you covered. This guide will walk you through everything you need to know about property investment in the UK so you can decide if it’s right for you.

Ready to dive in? Let’s get started!

Property Investment Returns: Are the Rewards Still Worth the Risk?

You may wonder if investing in property is worth the risk these days. It’s a fair question, especially with the economy still recovering from the effects of the pandemic. The short answer is yes; the property market is still worth it.

Property values in the UK have steadily increased over the long run, even with market ups and downs, making real estate a solid investment for the future. While past performance doesn’t guarantee future results, historically, property values have risen with inflation and even outpaced it.

That said, returns are likely to be more modest than the double-digit gains of years past. If you’re looking to make a quick buck, the property market probably isn’t for you. On the other hand, if you’re in it for the long game, real estate can provide stable income and healthy returns over time.

The key is buying smart. Do your research to find areas with solid demand and opportunities for price growth. 

If this has already convinced you and you want to navigate areas such as capital gains tax, getting a buy to let mortgage etc. without going through real estate investment trusts, then reach out to our expert team.

Is Property Investment Worth It for Building Wealth?

So, is property investment worth it?

In short, yes.

Here are a few reasons why UK property can be such a solid investment for building wealth:

  • Property values generally increase over time. Historically, property values have risen steadily in the UK, averaging 10.3% between November 2021 and November 2022. This trend continues to date, with the UK recording a 4.1% increase between March 2022 and March 2023.
  • Rental income provides cash flow. If you invest in a rental property, the rent payments from your tenants can provide you with monthly cash flow to help pay for expenses like your mortgage. Any excess amount from the rental income goes straight into your pocket.
  • Leverage allows you to buy more. When you take out a mortgage to finance an investment property, you use leverage to control an asset more valuable than the amount you put down. This allows you to generate a higher return on your initial investment

The Pros and Cons of Property Investment in the UK

Is real estate investing worth it?

What are the pros and cons?

With all investments, there is always some element of risk, but UK real estate is one of the safest asset classes in the world. Let’s take a look at the risk reward profile of buying a rental property.

Is property investment worth it?

The Cons: Upfront Costs and Responsibilities

Property prices and investment, like any investment, also have things to consider, like upfront costs, and responsibilities as a landlord.

As a landlord, you’re responsible for property taxes, insurance, maintenance, repairs, and potential vacancy periods or non-payment of rent. Dealing with tenant issues also requires time and sometimes money. Overall, the responsibilities that come with buy-to-let property can be time-consuming.

On the bright side, you can save yourself these stress and responsibilities by contracting a professional property letting and management agency like Redstone. Their expertise and experience will keep your mind at peace, so you can focus on higher-value tasks.

The Pros: Solid Returns and Tax Benefits

Property prices and investment in the UK can be advantageous. It’s one of the best ways to build wealth through capital appreciation. Rental income from rental properties also provides cash flow and the potential for ongoing passive income, amongst other perks outlined in the preceding sections.

Investing in a rental property with a company like API Global means that there is likely to be less repairs and maintenance costs, as it is new construction and has been thoroughly inspected (snagged) before handover.

Risks to Consider

There are also risks to be aware of, like a drop in property values, higher interest rates, problematic tenants, natural disasters, and economic downturns.

Here’s how they affect real estate investment:

  • Property values don’t always go up and are often cyclical.
  • Higher interest rates increase your costs and reduce your cash flow in the short term. However, if you treat UK property investment as a longer term investment, this evens out.
  • Difficult tenants in rental properties may damage your property or fail to pay rent. Hiring a company like property letting and management agency, Redstone can dramatically reduce this risk. 
  • Events like floods, fires or recessions can also negatively impact your investment. Make sure you’re insured to mitigate this risk. 

While property investment in the UK can be advantageous, go in with realistic expectations about the potential costs, responsibilities, rental yield goals and risks involved. Real estate investment is a great investment if you do your due diligence, find the right property and tenants, and take a long-term buy-and-hold approach (to balance out potential interest rate increments). However, make sure you understand all that’s involved before diving in.

Get in touch with us today for the best advice on how to successfully navigate the UK real estate waters.

Is Buy-to-Let Worth It in Today’s Market?

Let’s consider one of the most common property investment types—buy-to-let—and how profitable it can be in the current market.

The Buy-to-Let Market Today

The buy-to-let property market in the UK has seen some significant changes in recent years.

Outlined below are current trends in the buy-to-let market that will help you make the right decision about investing in this sector.

  • Mortgage interest relief has been phased out, reducing profits. The tax relief you can claim on mortgage interest has been reduced annually since 2020 — factor in the total cost of your mortgage payment when calculating returns. Your API Global consultant will talk you through your investment cash flows to make sure you choose the right investment for solid rental income and low buy to let mortgage payments.
  • Demand is high in some markets, especially those with students and young professionals. Cities with prominent universities and job opportunities (such as Manchester, Birmingham and Liverpool) tend to have solid rental demand. Look for properties suitable for sharers or young couples.
  • Additional licensing and regulations apply in some areas. Ensure you understand all laws regarding HMOs (houses in multiple occupation), licensing, safety standards, and your obligations as a landlord before purchasing an investment property. Failure to comply could lead to heavy fines, but with a property management company like Redstone, you needn’t worry about these requirements.

Our Verdict:

Many investors still generate healthy returns and capital growth through rental income/rental yield and long-term property price appreciation. The key is going in with realistic expectations, choosing locations and properties wisely, and ensuring your numbers work even in a slower market. For many, buy-to-let investment remains very much worth it, especially if you’re in it for the long haul. Reach out to API Global today for more details on how you can make your buy to let mortgage easy and investment a success.

is property a good investment UK

4 Factors to Consider Before Investing in Property

Is property still a good investment? 

That depends on your definition of “good.”

When deciding whether to invest in property or some other asset class, weighing the pros and cons of each is crucial. Property investment has some great advantages, but as with all investments it has some things to be aware of.

Hence, look into these four criteria before deciding to settle for property investment:

  1. Returns
  2. Stability
  3. Liquidity
  4. Management


Property has the potential for solid returns over the long run. According to historical data, UK property values have risen by over 73% over the past ten years. This outpaces inflation and the stock market.

Rental income also provides an additional revenue stream. After expenses (such as mortgage repayments), net rental yields in the UK currently average around 5.2–7.4% – and this doesn’t consider capital growth on top.


Physical property is a tangible asset, so some see it as more stable than stocks, bonds or cash. Property values and rents are less volatile over time. However, the property is still exposed to market cycles and risks like any investment — prices can stall during economic downturns. 


While property offers numerous advantages, it’s important to consider the aspect of liquidity. Compared to other forms of investments like stocks, shares, and bonds, real estate is less liquid since properties take longer to sell. If you are considering exiting your property investment, make sure you talk to your API consultant, who can help you exit in a timely manner. 


Property investment requires ongoing management of tenants, maintenance, paperwork, management of your income tax and stamp duty tax, and legal compliance. This can be time-consuming and stressful for some. Using a property management company can help a lot and save you headaches, but will reduce your returns.


In summary, while property investment has the potential for solid returns and tax benefits over the long run, the lack of liquidity and intensive management required may not suit all investors. For some, a balanced portfolio may provide the best results, including a mix of property and other asset classes. Discussing your goals with API Global can help you achieve a favourable investment strategy.

3 Common Myths About Property Investment Debunked

Several myths revolve around the real estate market, pushing you to wonder: is property investment worth it?

The below sections focus on clarifying and debunking these false assumptions:

Myth #1: Property investment is only for the wealthy.

First off, this isn’t true. While having a large deposit and substantial income will give you more options, property investment is accessible to most people.

There are many strategies for building a portfolio with little starting capital, including the following:

  • Looking at up-and-coming areas where the property is still affordable: As the neighbourhood becomes more popular, values will likely rise.
  • Buy off plan property: Off plan property is property that is not yet completed. Buying before or during construction can provider a lower than market rate investment that will increase over time. 
  • Mortgages: Use a mortgage to leverage your investment and achieve higher returns on the initial capital investment.

Myth #2: Property investment is risky.

While all investments carry risks, UK real estate features among the most stable asset classes. House prices in the UK have steadily risen over the long run, overshadowing the intermittent market dips. And unlike stocks, property is a tangible asset that will always have intrinsic value.

Some key risks to be aware of include the following:

  • Interest rate increments, which can impact mortgage repayments and reduce profits — although this generally balances out over time.
  • Void periods where the property is empty between tenants – use a good property management and lettings company to mitigate this risk.
  • Costly repairs or renovations that may be required – buying a newly constructed building reduces this risk.
  • A downturn in the overall economy or jobs market, which could impact rents and selling prices.

However, for buy-to-let investors, the rental income also provides cash flow and a buffer against these risks. With careful research and planning, property investment can be advantageous with manageable risks for most investors.

Myth #3: It’s challenging to get into property investment.

Although the process may seem daunting, getting into property investment is relatively straightforward.

Outlined below are the helpful tips to make your investment journey as seamless as possible:

  • Secure financing from a mortgage lender.
  • Find an investment property, working with a UK property investment specialist can make this easy.
  • Negotiate the best possible price and complete the purchase.
  • For residential property, find suitable tenants to rent the space. 
  • Manage the ongoing costs, maintenance, mortgage payments, rents, and taxes to generate a profitable return.

With the proper knowledge and support, building a property portfolio is an achievable goal for most aspiring investors. Don’t let myths hold you back from getting started — property is a good investment in the UK!

Learn more about the API solution—our research-led approach—to see how we can help you maximise your chances of success when it comes to real estate investment.

is real estate investing worth it

How to Get Started With Property Investment in 5 Steps

So you’ve decided that property investment is the way to go but are unsure how to proceed?

Here are five steps you can follow to begin building your property investment portfolio:

  1. Do your research.
  2. Develop a plan.
  3. Find the right property.
  4. Finance the purchase.
  5. Manage the property.

Step #1: Do your research.

Learn everything you can about the UK property market and various investment strategies.

  • Read books, blogs, and reports from expert investors.
  • Analyse the latest market trends and forecasts to determine the best areas and property types to invest in.
  • Talk to an advisor, who can help you with all of the above.

The more you know, the better equipped you’ll be to make intelligent investment decisions.

Step #2: Develop a plan.

  • Decide on your investment goals and the strategy you want to pursuee.
  • Determine your budget, preferred locations and type of property.
  • Create a timeline for finding and purchasing investment properties to keep yourself on track.
  • Review your plan periodically with your advisor. 

Step #3: Find the right property.

  • Work with your property investment consultant to discuss options that meet your requirments.
  • Look for properties with strong rental demand and potential for capital appreciation.
  • Negotiate the best deal you can to maximise your return on investment.

Step #4: Finance the purchase.

Explore your funding options to determine if a mortgage or cash is right for you. Compare interest rates and terms to find financing that fits your budget and investment timeline.

Step #5: Manage the property.

If pursuing buy-to-let, market the property to attract quality tenants, handle the leasing process, and oversee ongoing maintenance and repairs to keep the property in good shape. 

In summary, property investment is worth it as long as you adhere to these seemingly simple tips and tricks. Contact API Global if you’re unsure how to proceed.

3 Tips for Successful Property Investment

To succeed as a property investor in the UK, follow these three simple tips:

  1. Scout for properties with the potential for higher returns.
  2. Finance wisely.
  3. Manage effectively.

Tip #1: Scout for properties with the potential for higher returns.

  • Look out for properties with on-site amenities that attract long-term tenants or add resale value, like outdoor space, storage, parking, and a desirable location.
  • For buy-to-let, target areas with a large pool of potential renters.
  • Work with an agent to view properties that meet your criteria.

Tip #2: Finance wisely.

  • Explore mortgage options to determine the best way to finance your investment.
  • Interest rates on buy-to-let mortgages are often higher, so compare offers from multiple lenders.
  • Make a sizeable down payment to get a better rate and terms.

Tip #3: Manage effectively

  • On becoming a landlord, market your property to find responsible tenants, conduct viewings, check references, and handle the leasing process.
  • Maintain the property and handle any repairs needed to keep tenants happy and the value high.
  • Manage your cash flow, taxes, insurance, and other financial aspects of your investments closely.
  • Ensure you’re running your portfolio in a tax efficient way – capital gains tax and getting a buy to let mortgage are all things that can catch you out in this housing market

Frequently Asked Questions 

Is property a good investment in the UK?

Yes, UK property investment is an attractive option when considering portfolio diversification. It offers the potential for long-term growth through capital growth and rental income. Cities like Birmingham are predicted to be among the best areas to invest in buy-to-let properties due to affordable property prices and high rental yields. However, it’s essential to conduct thorough research and consider your financial goals before making any investment decisions.

If you want to learn more about the average UK property price and the best places to invest outside London, then get in touch with our expert team.

Is buy to let a good investment?

Buy-to-let investments in the UK are a good investment and highly profitable as long as you take the time to do proper research before committing or employ the service of a professional lettings and management company. In light of this, researching and selecting areas with strong rental demand, high rental yields, and potential for capital growth is essential. Cities like Manchester, Birmingham, and Liverpool are among the top choices for buy-to-let investments.

Is it better to save money or invest in property?

Whether to save money or invest in property depends on your financial situation, risk tolerance, and long-term goals. Saving money provides a safety net and is more suitable for short-term objectives, limited risks, and relatively easy access to your funds. However, you should also consider inflation — keeping your money in the bank reduces its value over time because the accrued interest doesn’t account for inflation.

On the other hand, property investment has the potential for capital growth and rental income but also involves higher risks and responsibilities. It’s better suited for long-term financial goals and building wealth over time. But unlike savings, your properties appreciate in exponential value, keeping up with inflation.

In summary, it’s essential to have a balanced approach, considering your financial objectives and risk appetite, before choosing between saving or property investment.

How risky is property investment?

Like any investment property investment involves a certain level of risk that ultimately depends on various factors, such as market conditions, location, property type, and investment strategy.

Some common risks in property investment include the following:

  • Market Fluctuations: Property values can rise or fall due to changes in supply and demand, economic conditions, and government policies.
  • Liquidity: Property investments are relatively illiquid, meaning it can take time to sell the asset if you need to access funds quickly.
  • Vacancy Issues: There can be periods of vacancy or issues with tenants that may affect your rental income.
  • Maintenance Costs: The ongoing costs of maintaining and managing the property can impact your investment returns.
  • Interest Rates: Changes in interest rates can affect your mortgage payments and the profitability of your investment.

Despite these risks, property investment can be a rewarding long-term strategy if you conduct thorough research, choose the right property, and manage your investment wisely.


So, is property investment worth it?

Yes, it is.

While there are risks to consider, the potential rewards of steady income, capital gains tax, and tax benefits are appealing to many investors. 

The key is starting small, learning the ropes, and building your portfolio as your experience and profits grow. You never can tell; maybe in a few years, you’ll be an expert property investor enjoying the financial freedom that comes with it.

 Check out our latest market leading developments, or contact us to connect you with the best agents and developers across the UK.

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Lewis Finn

Experienced Sales Manager with a demonstrated history of working in the financial services industry. Specialising in offshore investments & UK investment property.

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