Contractors and employees cannot rely on property investments funding their retirement, according to an expert.

Investing in property is no longer a viable alternative to pension saving due to the slump in the housing market, according to Jonathan Davis of Jonathan Davis Wealth Management.

In past years, people took out massive loans in order to invest in property, the equity of which they thought would see them through their retirement.

However, Mr Davis warned that this type of plan stopped being effective around 2007 when the housing market slumped.

Those who do choose to invest in property for help during retirement are likely to be "severely disappointed," he added.

This comes after news of proposals which, if adopted, could see contractors' tax soar.

They suggest harmonising self-employed income taxation with that of employed people as well as combining National Insurance contributions with income tax, further pushing up the percentage being paid.