Affluent UK investors are allocating more capital to buy-to-let property once ISA and pension allowances have been used, according to new research from Rathbones.
A nationally representative survey of 3,092 UK adults with investable assets of up to £2.5 million indicates that investment behaviour shifts noticeably as wealth rises and tax-efficient wrappers are exhausted.
Among those with £25,000–£250,000 of investable assets, just 4% hold buy-to-let property. That proportion increases to 35% among individuals with more than £2.5 million.
The findings from Rathbones suggest that buy-to-let remains a significant draw for high-net-worth investors seeking additional avenues for returns once mainstream tax shelters have been utilised. While allocations to Venture Capital Trusts and the Enterprise Investment Scheme also rise with wealth, property stands out for its scale and familiarity.
For mortgage brokers and lenders operating in the buy-to-let space, the data reinforces the enduring appeal of residential investment property among affluent clients, despite ongoing tax and regulatory changes in recent years.
Isabella Galliers-Pratt, senior investment director at Rathbones, said: “Once they’ve used ISA and pension allowances, the next question we hear from clients is: where does my next pound go?
“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 right route depends on time horizon, risk tolerance and personal tax circumstances. It’s important to balance the understandable desire to shelter investments from tax with the risks involved.
“Paying tax isn’t a bad thing – it typically means your investments have performed well.”
The research highlights a broader pattern in which wealthier investors demonstrate a greater willingness to embrace complexity.
Investment in tax-advantaged private company schemes rises from 2% among those with £25,000 – £250,000 in investable assets to 25% among the wealthiest respondents.
However, buy-to-let’s prominence is notable given the tighter fiscal environment facing landlords in recent years. For higher earners who have already maximised annual ISA and pension contributions, property can offer a combination of income generation and potential capital growth, albeit without the same upfront tax reliefs available through pension or venture capital structures.
The survey also found that appetite for higher risk alternative assets – including peer-to-peer lending, cryptocurrencies and unquoted shares – increases in line with wealth. Adoption of these assets climbs from 5% among investors with £25,000–£250,000 to 14% for those with £500,000–£1 million, and to 25% among individuals with more than £2.5 million.
