A transgender woman who was inspired by Princess Diana has launched the first Miss Transgender UK pageant to help other transitioning women feel like royalty.

Rachael Bailey, 34, from Cardiff, has used her life savings to establish the competition, which aims to empower the transgender community.

The events manager was inspired to set up the contest after a lifetime of struggling with her own identity and says she wants to give other transgender women the confidence to embrace who they really are.

Rachael Bailey has launched Miss Transgender UK as a way of empowering Transgender women

Rachael, who was born male and grew up as a boy named Patrick, says that she was aware of her gender confusion from a young age.

She said: 'As a child, I always knew something wasn't quite right. I loved playing with Barbies and I wanted to wear girls clothing instead of jeans and trainers.'

Rachael says that feeling uncomfortable in her own skin lead to other more sinister problems.

'Growing body hair repulsed me and I never felt comfortable in my own body. Sadly this led to me developing bulimia when I was 14.'

But as she reached adulthood Rachael's life took a positive turn when she moved abroad and discovered she didn't have to live her life as the wrong gender.

Rachael grew up as a man named Patrick (left) but after moving to the Netherlands at the age of 18 began to pursue her life as a woman (right)

Growing up as a boy Rachael developed bulimia as she became more uncomfortable in her own body

'It wasn't until I was 18 and moved to the Netherlands that I realised I could start living as a woman and finally be the person I was always supposed to be.

'Now I want to give other transgender women the confidence that I never had. I want them to know that they are beautiful and strong too.'

One of Rachael's greatest inspirations was the late Princess Diana, who she says showed the 'poise, elegance and glamour' she has always dreamed of emulating.

Rachael says she is inspired by the 'elegance and glamour' of Princess Diana and she even dressed up as the late royal while living in the Netherlands (pictured)

Rachael said: 'She was such a kind person, and so dedicated to her charities. I'm a firm believer that beauty comes from the inside, and this is something I am trying to illustrate through my competition.

'I even dressed up as Princess Di for a beauty pageant. I had a long, billowing gown and sparkly earrings and I felt just like her.'

Miss Transgender UK was set up earlier this year after Rachael noticed there was a lack of opportunities for transgender women.

But four years ago the pressure of living as a man became too much and Rachael began taking feamle hormones again and since then has dedicated her time to launching Miss Transgender UK

She said: 'There wasn't really a national competition for young transgender women in the UK, and I wanted to create an event that would help to inspire confidence and celebrate all the wonderful girls out there.'

Events will be held in Birmingham, Cardiff, Glasgow, Manchester and Brighton, with the winner receiving a £5,000 cash prize at the London final in September.

Rachael hopes that her competition will help other transgender women achieve happiness too

Contestants in the regional heats of the pageant will participate in three rounds, where they will answer a series of questions and take to the catwalk in a selection of themed outfits.

The competition costs £25 to enter and 60 per cent of all profits will go to LGBT charities across the UK, including the Elton John AIDS Foundation.

Judges include boxing promoter Kellie Maloney, who in March this year underwent gender reassignment surgery.

Rachael said: 'It is exciting to have celebrities on the judging panel, but it's equally exciting to have such amazing contestants apply.

'So far, we've had over 30 applications from all over the world. I'm really excited to meet the girls and watch them strut their stuff on the catwalk.'

Rachael also revealed that her own personal difficulties have inspired her to help other transgender women.

She says after a series of personal setbacks, including a heart attack in 2005, she was forced to move back to the UK and go back to living as a man between the years of 2007 and 2011.

During this time, she fathered a child and married a Nigerian princess.

But four years ago, the pressure of living as a man became too much and she started taking female hormones to become a woman again.

Since then, Rachael has dedicated her time and savings to launching the competition, which begins in July.

Rachael said: 'I'm finally at a point in my life where I can say that I am happy with who I am. My journey hasn't been easy, but it's made me who I am today.

'Sadly I am unable to have gender reassignment surgery due to complications with my heart, but that doesn't make me any less of a woman.

'I have a wonderful, supportive partner and I am truly dedicated to launching this competition and helping other transgender women achieve happiness too.