Property market is a bit static at the moment, best bet is to buy off plan imo, sell when it's built. Unless you want to effort of renovating properties.

If you don't want the hassle of property the firstly use your tax free ISA allowance of 7k if you've not already.

Then consider the tax efficient National Savings products http://www.nsandi.com/

Then maybe something like an Investment bond which gives you access to a wide range of professionally managed investment funds with varying risks to suit your attitude.
Good for a tax efficient income if you are a higher rate tax payer too.

Really you need to speak to a financial adviser though mate.
http://www.unbiased.co.uk/ will find you a local IFA.