Leading UK wealth manager Rathbones has declared that buy-to-let and capital appreciation are no longer viable strategies, citing new research comparing property to equities over the past century.

Key Findings: Housing vs Inflation & Investment

• Since 2016, UK house prices have grown at just 3.7% annually, barely matching inflation.

• In London, growth was just 1.3% per year, 2.2 percentage points below inflation.

• Contrast that with 1980–2016, when house prices rose 6.7% annually UK-wide and 8.5% in London.

Equities Outperform Property

• £100 invested in UK property in 2016 is worth £134 in 2024.

• The same £100 in a 25% UK / 75% global equity portfolio: now worth £174.

• London property returns worst of all: just £111 from the same £100.

“The idea that you can’t go wrong with bricks and mortar just isn’t true anymore.”
— Oliver Jones, Head of Asset Allocation, Rathbones

Why It’s Changed

• Decline in interest rates (1980s–2010s) is over.

• Government policy has become more hostile to landlords since 2015.

• Higher interest rates, EPC rules, and the Renters’ Rights Bill reduce buy-to-let returns.

• Affordability is deteriorating — house prices remain 8x average earnings, up from 4x pre-2000.

Conclusion

“This is a wake-up call for anyone relying on property for retirement or succession planning.”
— Ade Babatunde, Rathbones

Rathbones urges individuals to rethink their financial strategy: property is no longer the default safe bet, and diversified global investment now offers superior, inflation-beating returns.