Wealthy Brits are more likely to attribute their wealth to investments in financial markets than in property, with more than a third choosing market performance.

In contrast less than a fifth chose property investments as the reason for their wealth.

Research by wealth manager Brown Shipley showed 35% picking market performance, up from 30% in 2023 and approximately in line with the 34% reported in 2020.

Only 19% of affluent Brits attributed their wealth to property investments, down from 22% in January 2024 and 27% in 2020.

More than a fifth (22%) of those surveyed said they are investing more money in markets, while nearly one third (29%) said they plan to do so in the next three years.

However, tax changes announced in the latest UK Budget have prompted many affluent individuals to review their investment strategy. The announcement of the reduction in inheritance tax relief for investments in the alternative investment market (AIM), led to more than a one third (36%) of those surveyed saying they are now less inclined to invest in AIM stocks than they were a year ago.

There are significant demographic differences among those who say that property investments are their primary store of wealth with the younger more than twice as likely to cite them.

Among the older Brits surveyed, those aged 55 and above, just 14% attributed their wealth to property investments. In contrast, nearly a third (29%) of younger affluent Brits, including those aged 18-34, attributed their wealth to property investments.

The research also identified regional differences, with three in ten (31%) London residents attributing their wealth to property, compared to just one in ten (10%) Welsh residents.

Dominic Kohler, head of investment & client solutions at Brown Shipley, said: “The results of this survey underscore the importance of portfolio diversification as part of any investment strategy, which is particularly important as clients navigate challenging market conditions and changes to fiscal policy.”

• The research was based on a survey of a representative sample of 4,000 UK adults (18+) between 24-30 December 2024, conducted on behalf of Brown Shipley by Opinium Research.