Is Property Still a Good Investment? Here's What Winners and Losers of Past 15 Years Reveal
Between 2011 and 2025, the East Midlands recorded the highest inflation-adjusted returns on property, exceeding 24%, while London achieved around 23%. In contrast, the North East experienced the poorest performance with returns of -2.21% over the same period.
From 2011 to 2015, London saw a strong inflation-adjusted increase of 30.73%, whereas the North East declined by 6.51%, the North West by 2.12%, and Yorkshire and the Humber by 1.33%.
Between 2016 and 2020, the East Midlands led again with returns of 16.8%, London fell just under 9%, the North East managed to break even, and the North West delivered 11.2% returns.
However, from 2021 to 2025, London experienced a significant fall of 13.42%; the East Midlands also declined by 6.83%, the South East by 7.63%, and the South West by 3.62%. Meanwhile, the North East bucked the trend with positive returns of 4.73%.
Low borrowing costs during the 2010s—when the Bank of England rate sat near 0.5% and mortgage rates remained below 4%—helped boost property prices in London and the South East above inflation levels. As interest rates rose above 4%, these areas, which benefited most from cheap credit, showed the largest real-term reversals, suggesting a market correction rather than a crash.
More affordable regions such as the North West, Wales, and Northern Ireland continued to generate positive real returns in the higher-rate environment seen from 2021 onward.
The overall takeaway is that property affordability is returning to align with income levels, benefitting first-time buyers. Sellers in the South may need to adopt more realistic pricing strategies. This shift toward market sustainability could help avoid a sharper crash.
These insights were derived from HM Land Registry and inflation data analyzed by Moneyfacts, with cited analysis by Adam French, head of news at Moneyfacts.
