Posts with tag: gender

Do Female Investors Prefer Lower Risk Investments?

Published On: August 21, 2018 at 8:02 am


Categories: Landlord News

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Experienced property investors usually compound wealth over time, identifying that over-ambition can often lead to excessive risk, in addition to a decrease in returns.

However, there are some that are urgent to multiply their investments, and most of these people are often men, according to the sales and letting agency, ludlowthompson.

It was reported that females are far likelier to concentrate on long-term investing frames investments, such as property, recognising that this makes wealth compounding much more likely. This slightly explains why ownership of buy-to-let property is much more of a 50-50 split between women and men, compared with other forms of investment.

According to the London-based firm, women make up 46%, or 1.1 of the total 2.4m UK buy-to-let property investors that can be identified from an analysis of Government data.

Women generate £13.8 billion of the total £32.3 billion in rental income generated by the UK’s buy-to-let property investors.

In alternative types of savings, such as pensions, the gap in ownership between genders is considerably higher.

Women receive £46.5 billion of income from pensions, whilst men are receiving £79.3 billion of income from pensions.

Ludlowthompson claimed that one reason why women might have been really active investors in buy-to-let is that residential property is a relatively stable asset and not prone to the more dramatic swings in values of shares.

Research carried out into the different investment strategies favoured by men and women tend to suggest that women have less of an appetite for speculative investments than men.

Chairman of ludlowthompson, Stephen Ludlow, commented: “Whilst a lot of men get entranced by get-rich-quick investments like CFDs and cryptocurrencies – women are said to much more grounded and prefer lower risk investments like real estate.

“When we started our business 25 years ago we noticed that it was an investment that seemed to be favoured by women over men.

“That’s been great news for those early pioneers as residential property investment has easily beaten other outperformed other asset classes like shares, bonds and cash.

“Women who have built up substantial buy-to-let portfolios deserve a bit of recognition as they have done this in the face of constant criticism that buy-to-let property is risky. The reality is that assets like shares have proved to be far riskier.”

Gender Pay Gap Highlighted by Knight Knox Property Investment Survey

Published On: July 20, 2018 at 9:54 am


Categories: Landlord News

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Gender pay gap research from Knight Knox has highlighted that the received income from property investment is lower for women than it is for men.

Knight Knox received its data from a yearly survey of landlords across the UK, which has revealed that male landlords receive an average of £24,050 annually, whereas female landlords receive £22,550.

Looking at the results from last year, this now shows an increase in the gap from 1% to 6%. These results fit in with the current trend of the overall gender pay gap apparent as an issue in Britain, which stands at 9.1%.

Andy Phillips, commercial director at Knight Knox, commented: “Inequality and gender pay gaps have been a huge topic across the media over the past year and these figures seem to signal that similar issues may have made their way into the investment and buy-to-let market.

“That being said, the income does seem to be aligned with experience – male landlords have almost two years more experience on average, and this is likely to have some impact on the returns generated by renting out property.”

The latest statistics from Knight Knox went on to show that renting out a property is main source of income for 31% of female landlords, whereas this is only the case for 17% of male landlords.

It has been pointed out that women were underrepresented in the results, with the gender breakdown showing 40% female participation.

Andy added: “Property investment is clearly a male-dominated market and there is potentially more to be done to attract female investors to level out the playing field.

“Research by YouGov recently showed that women take less risk and are more focused on avoiding losses than generating gain from investments. They will dig deeper to understand the market before diving into the unknown, so accurate and jargon-free advice tends to be more important than when dealing with male investors.”