Rethinking Property
What High Earners Get Wrong About Building Wealth
And, what they miss when they trade freedom for bricks and mortar.
For decades, property has been the unofficial badge of financial success in Britain.
Buy a home, buy another, let it out, and let the rent “work for you”.
It sounds logical, safe even, especially when you’re a high earner (£300,000+ a year) and looking for smart ways to turn your income into personal wealth.
But here’s the truth few talk about. Property isn’t always the solid investment it’s made out to be.
For many, it removes their liquidity, increases stress, and ties capital to an asset that demands time and attention, two assets you already have too little of.
I learned that the hard way.
When I was a professional athlete, I had a buy-to-let flat that looked perfect on paper. Known tenants (teammates), a friendly employer paying the rent, and the comforting assumption it would “look after itself.”
Instead, I found myself chasing rental payments every month, managing repairs, and watching my ‘passive’ income disappear with tax and maintenance bills.
One season as a landlord was enough.
I sold the property and promised myself I wouldn’t confuse property with passive income again.
However, I’ve done far better with the homes I’ve actually lived in, properties I’ve cared for, improved, sold when it made sense and made a profit from which helped climb the property ladder.
Those experiences taught me a lesson most professionals learn too late: wealth isn’t built by simply collecting assets, it’s built by making informed decisions.
The Reality Check
A decade ago, property had powerful tailwinds: low interest rates, generous tax reliefs, and rising prices.
But as Rathbones noted in their 2025 report, “Don’t Bet the House: Why the Golden Age of Property is Over,” those structural supports have faded.
Between 2016 and 2023, £100 invested in UK property grew to £134, while the same £100 in a global equity portfolio reached £185 (Dimensional Fund Advisors).
That gap compounds into hundreds of thousands over a career.
Why It Still Appeals
1. Income potential
Gross rental yields average around 7.5% nationally (Hamptons, October 2025), but after mortgage costs, management fees, and tax, the real figure is closer to 3–4% (for individuals in the 40/45% tax bracket).
2. Leverage
Put down £125,000 on a £500,000 property.
If it rises 5%, you’ve made a £25,000 gain, a 20% return on capital.
But the maths cuts both ways if property values drop.
3. Control
Unlike shares, you can touch, improve, and manage property.
For some, that sense of control is comforting.
The Tax Trap Most Miss
Buy-to-Let Mortgage Interest Relief (2025/26)
Since April 2020, landlords can no longer deduct mortgage interest from their rental income to reduce their tax bill.
Instead, they receive a flat 20% tax credit on their mortgage interest payments. [HMRC, Section 24 legislation], regardless of their income tax bracket.
An example:
Rent: £950 p.m. (£11,400 p.a.)
Mortgage interest: £600 p.m. (£7,200 p.a.)
You’re taxed on the full £11,400, not the £4,200 profit.
Then you get a £1,440 (20%) credit.
That means:
Basic-rate taxpayer = £840 tax
Higher-rate taxpayer = £3,120 tax
Additional-rate taxpayer = £3,690 tax
In short: higher earners lost half their mortgage relief overnight.
UK Property Tax at a Glance (2025/26)
Mortgage Interest Relief: 20% credit only.
Stamp Duty Surcharge: +5% on additional properties at each bracket. So, for a £1M property that’s an additional £50,000 in SDLT.
Capital Gains Tax: 18% / 28%; annual exemption reduced to £3,000 (April 2024).
Corporation Tax (SPV): 19–25% depending on profits; mortgage interest deductible, dividends taxed separately.
These aren’t necessarily deal-breakers, it’s information to be aware of so you can make informed decisions.
The question is whether the investment fits within your wider planning.
The Real-World Challenges
Liquidity
You can’t sell a few bricks to do your weekly Waitrose shop. Selling can take months and may not be at the ideal time in the market cycle.
Capital
Deposit, SDLT, legal fees, refurbishments, often five or six figures before you see rent.
Management Burden
Even with agents (typically 8–15% of gross rent, according to Propertymark 2023), you’ll still manage repairs, void periods, and legal considerations.
It’s not passive income, it’s an active business.
Regulation & Policy Risk
Energy-efficiency rules, tenant rights reforms (Renters Right Act), and shrinking CGT allowances all point one way = more complexity, less margin.
Concentration Risk
Three properties worth £2 m sounds impressive, but it’s one asset class, one country, one market cycle, therefore highly concentrated and an increased level of risk.
When It Makes Sense
You have surplus income you can afford to lock away.
You want diversification beyond equities, bonds, cash.
You see it as part of a broader wealth plan, not your entire strategy.
You’ve stress-tested for higher rates, voids, and repairs.
When It Doesn’t
Liquidity is important, particularly if your career has a short shelf life.
You’re already tied up in illiquid assets.
You want something truly passive.
Your time is better spent earning more in your main career.
A Smarter Way to Think
You don’t need to own bricks to benefit from them.
REITs and property funds offer exposure without the calls, costs, or compliance.
They’re liquid, diversified, and can sit inside ISAs or pensions, tax-efficient from day one.
A 3-Step Framework
Purpose = Is the goal income today or flexibility tomorrow?
Structure = Personal vs company ownership have different tax implications.
Liquidity = Keep at least 6–12 months of expenses accessible.
The Right Fit For You
For years, I thought property was the logical next step once you started earning serious money.
It’s what people with “financial sense” did, buy a flat, rent it out, let time do the heavy lifting.
But the more I’ve seen, the clearer the pattern becomes:
Property builds wealth only when it fits your life, not when it drains it.
The maths and tax structure matter, yes.
But what really determines success is fit: does this investment give you freedom or take it away?
For some, property makes perfect sense.
You’ve got time, patience, and capital you can afford to lock away. You enjoy the process, the spreadsheets, calculating yields, remortgaging, finding tenants, the renovations, the strategy.
Done right, it can compound quietly for decades, and has done for many.
But for those with short careers, work long hours, or have young families, it’s not the safe play it appears to be.
It’s illiquid, administrative, and emotionally tiring.
You don’t need to own bricks to build wealth.
You need clarity, structure, and a plan that aligns with your real life, not an outdated idea of success.
Because wealth isn’t just about assets.
It’s about time, choice, and confidence, knowing you can make the strategic decisions at the right moments, without pressure or panic.
Risk Warning
This article is for educational purposes only and does not constitute personalised financial advice.
The value of invested capital can fall as well as rise, and you may not get back all of your original investment.
Past performance is not indicative, or a guarantee of future returns.
Tax planning is not regulated by the Financial Conduct Authority