Exclusive: Is Property Still a Good Investment? What 15 Years of Winners and Losers Tell Us
By Sky News Money Blog – December 4, 2025
Property has long been regarded as a safe, long-term investment, offering a tangible asset that typically appreciates over time. But with the era of ultra-low interest rates now behind us, many potential investors and homeowners are asking: is property still a sound financial bet?
Sky News’ Money blog presents an exclusive analysis drawing from 15 years of property data, revealing how different regions in the UK have fared and what this means for investors moving forward.
Regional Property Performance: Winners and Losers from 2011 to 2025
An in-depth analysis by Interest from Moneyfacts, based on HM Land Registry data and inflation figures, finds that the most lucrative property returns over the last decade and a half have been far from uniform around the country.
- East Midlands takes the crown with an average real return of more than 24%.
- London follows closely, with returns approaching 23%.
- North East property owners have had the worst outcome, facing an average loss of 2.21%.
Changing Dynamics Over Three Phases
Breaking the timeframe into three segments shows how regional winners and losers have shifted dramatically over time.
Early 2010s (2011–2015)
This period was characterized by ultra-low borrowing costs as the UK attempted to recover from the 2008 financial crisis. Borrowers benefited from cheap mortgages and low interest rates, which propelled property prices especially in the South.
- London property owners gained substantially with a 30.73% inflation-adjusted return.
- Conversely, regions such as the North East (-6.51%), North West (-2.12%), and Yorkshire & Humber (-1.33%) saw losses.
Mid to Late 2010s (2016–2020)
The property market’s momentum began to shift as salaries grew, mortgage rates remained below 4%, and the Bank of England’s base rate stuck near 0.5%. More buyers accessed the market, but the best returns started to migrate away from London.
- East Midlands took the lead with 16.8% inflation-adjusted gains.
- London’s returns slipped to just under 9%.
- North East broke even, and the North West climbed to 11.2%.
Early 2020s (2021–2025)
Rising interest rates and broader economic pressures started to temper property price growth. The housing market flattened and, in some areas, reversed.
- London property owners suffered an average loss of 13.42%.
- The East, South East, and South West also registered losses ranging from 3.62% to 7.63%.
- Areas like the North East bucked the trend, with positive returns of 4.73%.
Is This a Market Correction or a Sign of a Changing Market?
Adam French, head of news at Moneyfacts, points to the fundamental role of ultra-low interest rates in inflating home prices during the 2010s. “Those artificially cheap borrowing conditions, particularly in London and the South East, have been reversed sharply as mortgage rates normalized,” he said.
French highlights that the correction underway may not spell collapse but rather a necessary rebalancing after a decade of distortion. He adds, “The housing market is now being shaped more by income and affordability rather than cheap credit.”
What Does This Mean for Buyers and Sellers?
- First-time buyers may find encouragement as more affordable regions such as the North West, Wales, and Northern Ireland continue to deliver positive real returns despite higher interest rates.
- These areas were less impacted by low-rate inflation earlier in the decade and have proven more resilient.
- Sellers in traditionally high-priced regions like London and the South may need to adjust expectations to reflect the new market realities.
- The market’s shift towards sustainability could help avoid a more severe property crash in the future.
Broader Financial Context and Advice
Alongside this property analysis, Sky News’ Money blog also features the latest on how recent budget changes could affect ISAs, tips on consumer rights, and guidance on energy bills. For example, Ofgem recently announced a £108 rise in energy bills by 2031 tied to grid investment, although the government projects energy bills will ultimately fall after planned price cuts.
Final Thoughts
The past 15 years of UK property data paint a complex picture, showing diverse regional trends influenced heavily by shifts in interest rates, economic growth, and government policy. While property remains a viable long-term investment in some parts of the country, especially where affordability and incomes support growth, others face significant challenges.
For anyone considering investing in or selling property, understanding these regional trends and the evolving economic environment is crucial. The era of ultra-low borrowing costs may be gone, but property continues to play an important role in many portfolios — provided expectations are set in line with current market conditions.
For more updates on property, savings, and personal finance, keep following Sky News Money blog.