I'd have said "No" up until last week. House prices have stabilised a bit, but were still in the position where they could go either way - the recession could get much, much worse yet. Therefore I suspected that, at best, house prices would probably stay about level for the next 5-10 years at least (therefore probably bad investment).
The lettings market is also pretty saturated right now - lots of property around. And with mortgages being quite cheap, rental prices have come down too.
HOWEVER, now I'm not so sure. The Bank of England has announced it will print (sorry, "quantatively ease") another £50bn into the economy, which could actually benefit house prices in the mid-term.
The money will take a few years to actually get into proper circulation (ie. get to homebuyers), but after that, there'll be plenty more money out there, pushing house prices back up. Coupled with that, the extra money in the economy will drive inflation quite quickly, so you're actually best to have as much debt as possible if and when that happens.
Of course, it will all go totally pear-shaped not long after that (5yrs or so) - the extra money is going to send inflation up massively and the GBP is probably set to crash on the international market.
In my opinion.