A growing number of wealthy UK investors are putting money into buy-to-let property despite higher stamp duty on second homes, according to analysis from Rathbones. The wealth manager found that investors who have already used their ISA and pension allowances are increasingly turning to BTL as a next step.
A survey of 3,092 UK adults with investable assets of up to £2.5 million found investment behaviour shifts once tax-efficient options are exhausted. Among those with £25,000 to £250,000 of investable assets, just 4 percent held buy-to-let property. That figure rose to 35 percent among those with more than £2.5 million.
Greater wealth enables higher risk tolerance
Isabella Galliers-Pratt, senior investment director at Rathbones, said wealthier clients often ask where to deploy capital after filling standard wrappers. “Once they’ve used ISA and pension allowances, the next question we hear from clients is: where does my next pound go?” she said.
“As wealth increases, investors are more willing and able to take on higher levels of risk. Greater financial resilience gives them the confidence to explore opportunities beyond mainstream wrappers.” The finding comes as record numbers of landlords incorporate to manage their tax burden more efficiently.
Alternative assets grow with wealth
The research indicates that use of higher-risk alternative assets rises with wealth. Investments in peer-to-peer lending, cryptocurrencies and unquoted shares increase from 5 percent among those with £25,000 to £250,000 in investable assets to 14 percent for those with £500,000 to £1 million, and 25 percent among investors with more than £2.5 million.
Holdings in taxable accounts – including shares, bonds and funds – also grow with wealth. They rise from 31 percent in the lowest bracket to 54 percent for investors with £250,000 to £500,000, and 69 percent for those with £500,000 to £1 million. This pattern reflects property’s enduring appeal as a tangible asset class for those seeking portfolio diversification.
Cash remains core holding
Despite rising interest in higher-risk assets, cash remains a core part of UK portfolios. Between 94 percent and 97 percent of respondents across all wealth levels hold savings accounts or Premium Bonds.
Galliers-Pratt added that investors should balance tax efficiency against risk. “The right route depends on time horizon, risk tolerance and personal tax circumstances,” she said. “It’s important to balance the understandable desire to shelter investments from tax with the risks involved.”
Use of Venture Capital Trusts and the Enterprise Investment Scheme also rose with wealth, from 2 percent at the lower end to 25 percent among the wealthiest respondents. These tax-advantaged vehicles offer income tax relief but carry higher investment risk.
Editor’s view
The data suggests property investment remains attractive to those with capital to deploy, even after stamp duty increases. For landlords wondering whether the market is dying, the answer from wealth managers is clear: it is evolving, not ending. The investor base may be shifting upmarket, but demand for BTL assets remains strong among those who can afford the entry costs.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 19 February 2026
Sources: Rathbones
Related reading: Landlords form record 66,587 companies as tax drives incorporation surge
