Investment statistics in the UK: a comprehensive overview

How many people invest in the stock market in the UK?

The UK stock market in 2024 has seen both resilience and challenges

While the FTSE 100 hit an all-time high of 8,445.80 in May 2024, the London Stock Exchange (LSE) reported its most significant net outflow of companies since 2009, with 88 companies delisting or moving their primary listings, reflecting a mixed market environment.

The number of Brits investing continues to rise.

In 2024, 23% of the UK adult population, approximately 12.5 million people, actively invested in the stock market, according to Finder.  This marks a sharp increase from 18% in 2023. Over the past five years, half of UK adults (51%) have invested, a substantial rise from 42% in 2023.

DIY investing is at the forefront of this growth. Platforms offering digital trading tools have encouraged more retail investors to take charge. Younger investors are increasingly drawn to app-only platforms, indicating a shift in how investments are managed and executed.

For instance, Trading212 and Freetrade have become popular among lower-income households, while traditional platforms such as Fidelity cater to higher-income investors.

Around 23.5% of UK investors choose shares and stocks, with 13.4% opting for funds, 11.1% investing in funds and 10.5% leaning towards cryptocurrencies.

Looking ahead, UK stock market participation is expected to grow. Analysts project a steady increase through 2025, with more retail investors opting for exchange-traded funds (ETFs).

European investment trends indicate ETF ownership has grown by 19% since 2022, driven primarily by investors aged 18-34, with 80% accessing ETFs through digital platforms. 

UK equity funds also recorded their net inflows in November 2024 for the first time in years, with investors showing renewed confidence despite market volatility.

How do investment behaviours differ across different generations?

Age plays a significant role when looking at investment statistics and behaviours. Generational differences influence how, where, and how much individuals invest.

Younger generations, particularly 18-34-year-olds, invest higher proportions of their income, often drawn to higher-risk, high-reward opportunities.

According to Finder, 68% of Gen Z have invested at some point in their lives, the highest percentage across all generations. This is particularly striking given their limited time to build wealth, suggesting the rising influence of trading apps. 

Millennials are close behind, with 65% having made investments, while less than half of Gen X (48%) have done so. Investment rates drop further for baby boomers at 36%, yet surprisingly, 46% of the silent generation have invested—outpacing baby boomers despite their older age.

On average, UK adults invest £514 per month, with younger investors prioritising ETFs and cryptocurrencies, according to Shepherds Friendly. In contrast, older generations prefer safer, long-term options like stocks, funds, and bonds. Among over-65s, only 23% prioritise sustainable investing, compared to 55% of 25-34 year-olds.

Factors such as technological access, disposable income, and risk tolerance contribute to these differences. Younger investors are drawn to mobile platforms offering easy access to new opportunities, while older generations prefer traditional brokerage services.

Economic uncertainty has also motivated millennials and Gen Z to invest in growth and sustainability.

Interestingly, younger generations, particularly millennials and Gen Z, are leading the charge in ethical investing, with 67% of UK investors stating sustainable investing is important to them, and they would hold sustainable investments for two years longer than the average investor, according to NatWest.

Sustainable investments are also a growing trend among new investors, who increasingly view them as a balance between profitability and social impact. Even within older age groups, awareness is rising, with 89% of investors factoring environmental, social and governance (ESG) considerations into their investment decisions.

What are the new ways of investing in the UK?

Investing in the UK has undergone a seismic shift over the past decade, thanks to technological advancements and the rise of alternative assets. Statistics in investing show a growing preference for digital platforms, fractional shares, and alternative asset classes such as cryptocurrency.

Cryptocurrency has evolved rapidly since its inception. As of 2024, 18% of UK investors hold crypto, according to Gemini, drawn by its growth potential even though it is extremely volatile.

Crypto remains high risk, with regulators warning investors could lose all their money. Bitcoin experienced a remarkable surge in 2024, climbing from a low of £31,122 in January to an astonishing £83,553 by December.

This dramatic increase highlights the potential for substantial returns and extreme unpredictability that continues to characterise the crypto market.

Beyond cryptocurrency, digital apps encourage micro-investing, where small amounts are invested regularly, helping first-time investors enter the market and build wealth incrementally.

A growing number of platforms now offer ‘round-up’ investing, where spare change from purchases is automatically invested, removing some barriers to entry.

What are the best long-term investments?

A long-term investment involves holding assets for an extended period, typically five years or more, with the aim of achieving sustained growth. Long-term investments often come with varying levels of liquidity and associated costs. 

For example, stocks and ETFs tend to have lower transaction fees and offer high liquidity, as they can be bought or sold quickly. In contrast, real estate, while a reliable long-term option, often involves higher upfront costs, ongoing maintenance expenses, and lower liquidity due to the time required to sell property.

The best long-term investments depend on your goals, risk tolerance, and financial timelines:

• Stocks, for example, remain a reliable choice, with shares of established companies offering long-term appreciation. The FTSE 100 delivered a return of 11.4% in 2024, outperforming its historical average.
• Funds and ETFs provide another strong option, offering diversification and less risk than other assets while ensuring consistent growth.
• Real estate is also a popular long-term investment, particularly in the UK, where house prices have risen 73% over the last decade, according to the Office for National Statistics.
• Tax-efficient savings vehicles like pensions and ISAs allow individuals to steadily build wealth over time. 

Historical data shows that UK property has delivered reliable growth while stocks consistently outperform other asset classes over extended periods.

Get expert financial advice

Understanding UK investment statistics and the trends shaping today’s market can help investors make informed, strategic decisions.

Whether you are exploring opportunities such as ETFs and cryptocurrency or focused on long-term stability through stocks, funds, or real estate, the key lies in aligning your investments with your goals. 

As investing evolves, balancing risk, sustainability, and growth will remain central to achieving financial success.

Let Unbiased match you with a professional financial adviser to help you make informed investment decisions and build a strategy tailored to your financial goals.