Why it might be time for female investors to switch from property to stocks and shares
According to Together (4 March 2024), women now make up almost 50% of the 2.6 million buy-to-let (BTL) investors in the UK.
However, recent research by LV= (3 September 2025) reveals that 52% of women in the UK have never held an investment product (such as stocks, shares, and bonds), compared to 34% of men.
While bricks and mortar may feel like a relatively “safe” investment, changes to the rules surrounding BTL have made it less attractive in recent years. By contrast, the average stock market return has historically been around 10% annually (however, note that past performance does not guarantee future returns).
Indeed, a survey by the private bank, Brown Shipley (10 February 2025), found that 35% of affluent UK adults attribute their success to investing in the markets rather than property.
If you’re a female investor with ambitious financial goals, keep reading to find out why now might be the time to switch from property to stocks and shares.
A growing number of landlords are choosing to sell up. Here’s why
Analysis by Savills (30 June 2025) suggests that between April 2021 and October 2024, 290,000 rental properties were sold out of the rental market. Moreover, Landlord Today (16 April 2025) has revealed that 15.6% of all new property instructions in the first quarter of 2025 were previously rented homes.
There are many reasons for this rise in the number of properties being sold by landlords, including:
Rising mortgage costs
Many landlords have seen their BTL mortgage interest rates jump significantly when their fixed deals expired.
The loss of mortgage interest relief
This valuable tax relief allowed landlords to deduct their mortgage interest from their rental income before calculating their tax bill.
However, under section 24 of the Finance Act 2015, which was phased in between 2017 and 2020, this relief was replaced with a flat 20% tax credit. As a result, many landlords now face a higher tax bill, especially those who are higher- or additional-rate taxpayers.
Increased Stamp Duty costs
The Stamp Duty surcharge is an extra tax – on top of the standard Stamp Duty Land Tax (SDLT) rates – that applies when purchasing an additional residential property in England and Northern Ireland.
From 31 October 2024, the BTL Stamp Duty surcharge was increased from 3% to 5% on qualifying properties over £40,000.
Moreover, the reduction of the SDLT threshold from £250,000 to £125,000 from 1 April 2025 means BTL landlords will pay the higher rates on a larger portion of the property price.
Both of these changes have contributed to higher upfront costs for investors.
Stricter energy efficiency standards
To rent out a property in the UK, you must obtain an Energy Performance Certificate (EPC), which rates its energy efficiency.
The government has proposed that all new BTL tenancies should meet a minimum C rating by 2028 and that all existing rental properties should reach this standard by 2030.
This could lead to expensive upgrades and difficulty remortgaging older or poorly rated properties.
The prospect of future, unfavourable changes
Some landlords are choosing to sell up and move on before additional reforms are introduced that might affect the viability and profitability of their property investments.
For example, the Renters’ Rights Bill is currently progressing through Parliament and, if passed, could introduce changes that might reduce landlords’ flexibility and increase their costs.
Stock market investments could offer a valuable alternative for female investors
Historically, women have invested less in the stock market than men, and figures published by Boring Money (5 March 2025) show that this “gender investment gap” has increased for the second year in a row. There are now 3.3 million more male investors in the UK than female investors.
However, research by HSBC (8 March 2025) paints a more encouraging picture. Its findings reveal that while only 13% of women in the general population have investments, 48% of high-earning women invest regularly.
If you don’t already invest in stocks and shares, here are a few reasons why you might want to start:
Potential for higher long-term returns
Staying invested long term could give your money more time to potentially grow, thanks to the powerful effect of “compound returns”. This means earning returns on both your original investment and on previous returns.
Just as a snowball rolling downhill will gradually gather more and more snow, growing bigger and heavier over time, compounding returns can help even modest investments grow. Most importantly, the longer you hold on to your investments, the more time your money has to benefit from the powerful effect of compounding.
You can access your money quickly if you need to
Unlike with property investments – where your money is likely to be tied up until you can sell – you can quickly and easily sell your shares if you need to. This could be invaluable if you face an unexpected financial shock, such as a sudden loss of income or illness.
Low upfront costs
It’s a common misconception that investing is only for extremely wealthy investors who have access to large sums of cash. In fact, you can start investing in the stock market with any amount of money you choose.
Flexibility and diversification
There is a wide range of investments to choose from, across different asset classes, geographical regions, and sectors. As such, you can align your portfolio with your values and financial goals while also diversifying your investments to balance risk.
Tax-efficient options
Eligible contributions to ISAs are shielded from Income Tax, Capital Gains Tax, and Dividend Tax. Consequently, they offer a tax-efficient way to save and invest.
In her Autumn 2025 Budget, Chancellor Rachel Reeves announced that the annual ISA subscription limit will remain at £20,000. However, from April 2027, for those aged under 65, contributions to Cash ISAs will be limited to £12,000, with the remaining £8,000 reserved exclusively for investments.
As such, if you want to make the most of your full annual ISA allowance, you’ll need to start contributing to a Stocks and Shares ISA.
Read more: Women hold more in cash savings than men: This is why it might be time to start investing
Get in touch
If you’re an ambitious female property investor but you lack confidence in investing in the stock market, please get in touch.
I can provide the support and guidance you need to embrace investing and embed it into your long-term financial plan.
To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300 889138.
Please note
| Your property may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. |
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
SOME BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
Approved by 2plan wealth management Ltd 15/12/2025.