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Article last updated 11 June 2026.
In a follow-on to our popular 2025 report, Rathbones raises fresh concerns around retirement planning as the UK property slump extends, with second home hotspots and London disproportionately hit.
Property continues to be outperformed
- UK house prices are no longer doing the heavy lifting for investors.
- Adjusted for inflation, the average UK home was worth less in 2025 than it was in 2016, underlining just how weak housing returns have been over the past decade.
- The backdrop for property investors has shifted decisively. Mortgage rates are unlikely to return to the lows that helped fuel the boom years, real wage growth remains weak, and the tax and regulatory environment for landlords and second-home owners has become steadily more punitive.
What does this mean for investors?
Those still enthralled to the idea that property investment is the best way to grow their wealth are likely to be disappointed. This year’s report, analysing data and related changes in the past 12 months, shows that a well-diversified portfolio of financial assets remains a much more compelling choice for the years ahead.
It’s important to remember that past performance isn’t a reliable indicator of future performance. With investing your capital is at risk and you could lose some or all of your investment.
