The buy-to-let gender gap is narrowing with increasing numbers of women choosing the asset class to invest their money.
New figures reveal women now account for 47% of the 2.5 million buy-to-let investors in the UK – which is an increase from 46% in the previous year.
When it comes to the actual number of residential property landlords who are women, the most recent data available – from the 2016/2017 tax year – revealed this figure had increased 5% to 1.2 million.
According to estate agents, ludlowthompson.com, which has compiled the research, this thinning gender gap amongst buy-to-let investors is likely to be because women prefer lower risk investment options.
It said, according to a study published in the European Journal of Finance by Dr Ylva Baeckström of Kings College women, generally, had a ‘less aggressive appetite’ for risk than men.
Pensions and ISAs
The transparency of buy-to-let compared to other types of investment, along with the regular pay outs and low price volatility meant it offered a lower risk option which women may well be more attracted to than other assets.
Indeed, just 43% of stocks and shares ISA investors were women and females represented just 8.5% of cryptocurrency investments, according to HM Revenue and Customs data.
What’s more, the share of income women receive through buy-to-let investments is higher than through pensions.
Indeed, ludlowthompson said women received 43% of all income from buy-to-let investments – which is £14.8 billion of a total of a total of £34.2 billion. Meanwhile, women only receive 37% of total £125.8 billion pension income earned by retirees.
Diversify
Stephen Ludlow, chairman at ludlowthompson, said: “It may not be long before we see a 50/50 gender split amongst buy-to-let investors which is significant given the much wider gaps in other asset classes, such as equities.
“Buy-to-let property is popular across investors of all different risk appetites. It is a sensible way to diversify an investment portfolio and does not require in-depth knowledge of accounting rules that you might need for investing in shares.
“There have been some naysayers suggesting that the property market is risky. However, even throughout years of Brexit uncertainty, house price growth has been relatively stable – unlike other areas of financial markets where price swings have been enormous.”
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Do you have a question about your buy-to-let mortgage? If so our expert Jeni Browne of Mortgages for Business is on hand to help.
Send your questions to kate.saines@emap.com or click here to read more buy-to-let Q&As.
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