How to Invest in REITs in the UK: 2025 Guide
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Risk Warning
Updated 18/01/2025
Discover our handpicked selection of REIT Investment Platforms, each thoroughly tested with real capital. All brokers are available to traders in the United Kingdom.
Quick Answer: How to Invest in REITs in the UK?
To invest in REITs in the UK, choose a platform like eToro or IG, open an account, deposit funds, and search for REITs or ETFs. Place a buy order and monitor your investments for regular income and long-term growth opportunities.
Here are the Best REIT Platforms in the UK Ranked:
- eToro – Beginner-friendly and highly intuitive platform.
- IG – Professional-grade tools for advanced investors.
- Interactive Brokers – Access to global REIT markets.
- Saxo Bank – Advanced technical analysis for high-net-worth investors.
- XTB – Cost-effective trading with a simple interface.
Featured Platform - eToro
- Copy Trading
- User Friendly Platform
- Trusted Brand
- 30 Million+ Users
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Investing in REITs felt like the perfect solution when I realised buying property outright was beyond my budget. With REITs, I discovered an affordable way to earn rental income without the hassle of being a landlord.
My goal with this guide is to simplify the process for you and review the best UK platforms that make investing in REITs easy, whether you’re a beginner or an experienced investor.
How to Invest in REITs in the UK (Step-By-Step Guide)
Here’s my six-step guide for UK investors:
Steps to Invest in REITs (Actionable Tips)
1. Choose a Trading Platform
Your first step is selecting a platform that suits your investment style and needs. Key considerations include:
- ISA Availability: If you want to invest tax-free, pick platforms like IG or Saxo Bank that support Stocks and Shares ISAs.
- Fees: Review transaction fees, account fees, and any additional charges. For example, XTB offers commission-free ETF trades, while Saxo Bank has higher fees tailored for premium investors.
- Ease of Use: For beginners, platforms like eToro offer a highly intuitive experience, while IG is better suited for investors who need advanced analysis tools.
- Available REITs: Ensure the platform provides access to the REITs or REIT ETFs you’re interested in. Platforms like Interactive Brokers provide global REIT access, while others focus more on UK-specific REITs.
| Rank | Platform | REIT Types | Ease of Use | Fees | ISA? |
|---|---|---|---|---|---|
| #1 | eToro | REIT ETFs | ⭐⭐⭐⭐⭐ | Low | ❌ No |
| #2 | IG | UK and global REITs | ⭐⭐⭐⭐ | Moderate | ✅ Yes |
| #3 | Interactive Brokers | Global REIT markets | ⭐⭐⭐⭐ | Competitive | ❌ No |
| #4 | Saxo Bank | International REITs | ⭐⭐⭐⭐ | Higher-end fees | ✅ Yes |
| #5 | XTB | REIT ETFs only | ⭐⭐⭐⭐⭐ | Very Low | ❌ No |
2. Open an Account
After selecting a platform, you’ll need to create and verify your account:
- Registration Process: Provide your email address and basic personal details to register. Most platforms will ask for proof of ID and address (e.g., passport and utility bill).
- Verification Requirements: Complete the platform’s KYC (Know Your Customer) process. This step is mandatory to comply with UK regulations and ensure account security.
- Account Types: Choose the right account for your needs, such as a general trading account or a Stocks and Shares ISA for tax-efficient investing.
3. Fund Your Account
Once your account is set up, it’s time to deposit funds. Consider the following:
- Deposit Methods: Most platforms accept bank transfers, debit/credit cards, or digital wallets. For example, eToro supports PayPal in addition to traditional methods.
- Minimum Deposit:
- eToro: £42 (~$50), making it accessible for beginners.
- IG: £250, suitable for more advanced investors.
- Saxo Bank: £500, tailored for premium services.
- Currency Conversion Fees: If your bank account is in GBP and you’re investing in REITs denominated in USD (e.g., Vanguard Real Estate ETF – VNQ), some platforms charge conversion fees.
4. Search for REITs or REIT ETFs
This step involves selecting the right REITs or ETFs to match your investment goals. Use the platform’s search functionality to find:
Individual REIT Stocks:
- Examples:
- British Land (BLND): Focuses on commercial real estate in the UK.
- Primary Health Properties (PHP): Specialises in healthcare facilities like NHS buildings.
- Sector Focus: Decide whether you want exposure to retail, residential, healthcare, logistics, or other real estate sectors.
- Examples:
REIT ETFs:
- ETFs bundle multiple REITs into one fund for diversification. Examples include:
- iShares Global REIT ETF (IGR): Offers international exposure to REITs.
- Vanguard Real Estate ETF (VNQ): Tracks US REITs.
- ETFs bundle multiple REITs into one fund for diversification. Examples include:
Tips for Beginners:
- Start with REIT ETFs to spread risk across sectors and regions.
- Use platform filters to sort REITs by market cap, dividend yield, or performance.
5. Place a Buy Order
After selecting a REIT or REIT ETF, it’s time to place your buy order:
- Investment Amount: Decide how much you want to invest. For beginners, starting small (e.g., £100) can help you learn without overcommitting.
- Order Types:
- Market Order: Buy immediately at the current market price.
- Limit Order: Set a specific price at which you want to buy, allowing you to control entry points.
- Review Fees: Check for trading commissions or stamp duty (0.5% on UK-listed REITs). Platforms like XTB may offer commission-free trades, while IG has competitive but tiered fees.
- Execute the Trade: Once satisfied, confirm your order to purchase shares or ETF units.
6. Track and Reinvest
Managing your investments is a crucial step to maximising returns:
- Track Performance:
- Use the platform’s analytics to monitor share prices, dividend yields, and market trends. For example, IG provides detailed performance charts and tools.
- Reinvest Dividends:
- Many REITs pay out regular dividends (often quarterly). Use a Dividend Reinvestment Plan (DRIP) to automatically reinvest dividends into additional shares.
- Adjust Portfolio:
- Periodically review your portfolio to rebalance across sectors or regions, ensuring alignment with your goals.
Example:
If you initially invest in healthcare REITs like Primary Health Properties (PHP), consider adding logistics REITs like Segro (SGRO) or retail-focused REITs like Hammerson (HMSO) to diversify risk.
Best Platforms to Buy Real Estate Investment Trusts (UK)
| Rank | Platform | REIT Types | Ease of Use | Fees | ISA? |
|---|---|---|---|---|---|
| #1 | eToro | REIT ETFs | ⭐⭐⭐⭐⭐ | Low | ❌ No |
| #2 | IG | UK and global REITs | ⭐⭐⭐⭐ | Moderate | ✅ Yes |
| #3 | Interactive Brokers | Global REIT markets | ⭐⭐⭐⭐ | Competitive | ❌ No |
| #4 | Saxo Bank | International REITs | ⭐⭐⭐⭐ | Higher-end fees | ✅ Yes |
| #5 | XTB | REIT ETFs only | ⭐⭐⭐⭐⭐ | Very Low | ❌ No |
1. eToro – Beginner-friendly and highly intuitive
Pros and Cons
- User-friendly interface, ideal for beginners.
- Low minimum deposit ($50).
- Access to REIT ETFs for diversification.
- CopyTrading feature to follow experienced investors.
- Limited access to individual UK REIT stocks.
- Fewer tools for advanced technical analysis.
- No ISA option for tax-free REIT investing.
Platform Overview
eToro is one of the most accessible platforms for UK investors starting with REITs. Its interface is easy to navigate, and it offers REIT ETFs like the Vanguard Real Estate ETF (VNQ). With a low deposit requirement of just £42, it’s an ideal choice for beginners.
REIT Tickers on the Platform
| REIT ETF/Stock | Ticker |
|---|---|
| Vanguard Real Estate ETF | VNQ |
| iShares Global REIT ETF | IGR |
| SPDR Dow Jones REIT ETF | RWR |
2. IG – Professional-grade tools for advanced investors
Pros and Cons
- Wide range of UK and international REITs.
- ProRealTime tools for advanced market analysis.
- Strong educational resources for improving strategy.
- High minimum deposit (£250).
- Fee structure can be complex for new users.
- Better suited for advanced investors.
Platform Overview
IG is ideal for experienced investors looking for detailed analysis tools and access to a wide range of REITs. With a minimum deposit of £250, it provides global REITs and ETFs alongside professional-grade platforms like ProRealTime.
REIT Tickers on the Platform
| REIT ETF/Stock | Ticker |
|---|---|
| British Land | BLND |
| Primary Health Properties | PHP |
| Grainger plc | GRI |
| Vanguard FTSE Europe ETF | VGK |
3. Interactive Brokers – Global REIT market access
Pros and Cons
- Access to REITs in multiple countries.
- Low fees for high-volume traders.
- Advanced tools for global portfolio management.
- Complex interface for beginners.
- Minimum balance requirements may deter smaller investors.
- No specific focus on UK REITs.
Platform Overview
Interactive Brokers provides UK investors with access to REITs across multiple global markets. Its competitive fee structure and extensive range of investment options make it a top choice for experienced investors interested in diversification.
REIT Tickers on the Platform
| REIT ETF/Stock | Ticker |
|---|---|
| Hammerson | HMSO |
| Segro | SGRO |
| Land Securities | LAND |
| SPDR Dow Jones Global REIT | RWO |
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
4. Saxo – Outstanding advanced technical analysis features
Pros and Cons
- Comprehensive market data for detailed research.
- Access to international REITs across various sectors.
- Premium tools for technical analysis.
- High minimum deposit (£500).
- Higher trading fees compared to competitors.
- Not beginner-friendly due to complex features.
Platform Overview
Saxo is a premium platform for high-net-worth investors. It offers advanced tools, comprehensive market data, and access to international REITs. However, it requires a minimum deposit of £500, making it better suited for experienced investors looking for high-level features.
REIT Tickers on the Platform
| REIT ETF/Stock | Ticker |
|---|---|
| Unite Group | UTG |
| Vanguard Global ex-US ETF | VNQI |
| iShares UK Property ETF | IUKP |
Your capital is at risk.
5. XTB – Cost-effective trading with a simple interface
Pros and Cons
- No commission on REIT ETFs.
- Low minimum deposit (£10).
- User-friendly platform for cost-conscious investors.
- Limited access to individual REIT stocks.
- Fewer advanced tools for detailed market analysis.
- No ISA support for UK investors.
Platform Overview
XTB focuses on cost efficiency and simplicity. With no commission on REIT ETFs and a low deposit requirement of £10, it’s an excellent platform for budget-conscious investors. Although it has fewer advanced tools, its intuitive interface makes it perfect for ETF-focused investors.
REIT Tickers on the Platform
| REIT ETF/Stock | Ticker |
|---|---|
| iShares Global REIT ETF | IGR |
| SPDR Dow Jones REIT ETF | RWR |
| Vanguard Real Estate ETF | VNQ |
Which REITs Should I Invest In?
The REITs you choose should align with your investment goals, whether you’re seeking steady income or diversification across property sectors. Below is an updated table of popular REITs, their focus areas, dividend yields, and platforms where they are available:
| REIT Name | Ticker | Sector Focus | Dividend Yield | Key Features | Platform Available On |
|---|---|---|---|---|---|
| British Land | BLND | Commercial Real Estate | ~5.5% | Focuses on office and retail properties in the UK. | IG, Interactive Brokers, Saxo Bank |
| Primary Health Properties | PHP | Healthcare | ~4.8% | Specialises in NHS-related healthcare facilities. | IG, Interactive Brokers |
| Grainger plc | GRI | Residential | ~2.8% | UK’s largest private residential landlord. | IG, Interactive Brokers |
| Hammerson | HMSO | Retail | ~4.7% | Operates shopping centres across the UK and Europe. | Interactive Brokers, Saxo Bank |
| Unite Group | UTG | Student Accommodation | ~3.7% | Focuses on purpose-built student housing. | Saxo Bank, IG |
| Segro | SGRO | Industrial and Logistics | ~3.2% | Specialises in warehousing and logistics spaces. | IG, Interactive Brokers |
| Land Securities | LAND | Commercial Real Estate | ~5.0% | Invests in office spaces and urban development. | IG, Interactive Brokers, Saxo Bank |
Pro Tip:
Diversify your portfolio by selecting REITs across different sectors, such as healthcare, residential, and logistics, to reduce risk and balance returns. Check the platform availability to ensure the REITs fit your chosen broker.
What is a Real Estate Investment Trust (REIT)?
A Real Estate Investment Trust (REIT) is a company that owns or finances income-generating properties such as offices, apartments, or shopping centres. REITs pool investor funds to purchase these properties, enabling individuals to invest without needing to buy physical property.
REITs generate income primarily through rent, property sales, or interest on property loans, and they must distribute at least 90% of their taxable income as dividends. This provides a steady income stream for investors.
REITs are traded on stock exchanges, offering liquidity and allowing investors to buy and sell shares like stocks. This combination of income and accessibility makes REITs an attractive option for diversifying portfolios.
How Does a REIT Work?
REITs work by pooling funds from investors to purchase, manage, or finance properties. For instance, a REIT might own residential buildings and earn rental income or lease commercial properties to businesses.
Income generated—whether through rent or interest—is distributed back to investors as dividends. To maintain REIT status, they must distribute at least 90% of taxable income annually, making them highly dividend-focused.
REITs employ professional property managers to oversee operations, allowing investors to benefit from property income without direct ownership responsibilities. Shares in REITs are traded on stock exchanges, making them accessible and easy to manage within a portfolio.
How Does REIT Investing Work in the UK?
UK REITs provide several advantages for investors. One of the biggest benefits is their tax efficiency. Unlike regular companies, REITs are exempt from paying corporation tax on profits from rental income, as long as they distribute at least 90% of these profits to shareholders.
Holding REITs in an ISA (Individual Savings Account) amplifies these benefits by making dividends and capital gains tax-free. For example, if you earn £1,000 in dividends within an ISA, you won’t pay any tax on that amount.
However, UK REITs are subject to a 0.5% stamp duty on share purchases. While this adds a small cost, the tax advantages and regular dividend payouts make UK REITs an appealing option for property-focused investors.
Investing in REITs Through an ISA
Investing in REITs through an Individual Savings Account (ISA) is one of the most tax-efficient options for UK investors. Dividends and capital gains earned within an ISA are completely tax-free, allowing you to maximise your returns.
To start:
- Open a Stocks and Shares ISA on a platform like Hargreaves Lansdown, IG, or eToro.
- Select REITs or REIT ETFs to add to your portfolio.
- Deposit funds (up to the annual ISA limit of £20,000 for 2023/24) and monitor your investments.
ISAs not only save you money on taxes but also simplify tracking your investments, making them an excellent option for both beginners and experienced investors.
| Platform | Can You Invest in REITs Through ISAs? | Details |
|---|---|---|
| eToro | ❌ No | eToro does not currently offer ISA accounts, so REIT investments are taxable. |
| IG | ✅ Yes | IG offers Stocks and Shares ISAs, allowing tax-free investments in REITs. |
| Interactive Brokers | ❌ No | Interactive Brokers does not support ISAs, so REIT investments are subject to normal tax rules. |
| Saxo Bank | ✅ Yes | Saxo Bank allows investments through ISAs, but it has higher fees compared to competitors. |
| XTB | ❌ No | XTB does not offer ISA accounts, meaning REIT investments will be taxable. |
Types of REITs
- Equity REITs: These own and manage income-producing properties, such as residential, office, or retail spaces. Their income comes from rent payments.
- Mortgage REITs (mREITs): These REITs invest in property mortgages or mortgage-backed securities, earning income through interest on loans.
- Hybrid REITs: A combination of equity and mortgage REITs, offering both rental income and interest from loans.
- Specialty REITs: Focus on niche sectors like healthcare facilities, data centres, or storage units.
Each type offers different risks and rewards, allowing investors to align with their goals.
REIT ETFs and Their Advantages
A REIT ETF (Exchange-Traded Fund) invests in multiple REITs, providing instant diversification across sectors or regions. For instance, the iShares Global REIT ETF includes a mix of REITs worldwide, offering exposure to various property markets.
Compared to individual REITs, ETFs spread risk more effectively. If one REIT underperforms, gains from others can offset the loss. ETFs also offer liquidity, as they are traded on stock exchanges like individual shares, making them easy to buy and sell.
Investors benefit from regular dividends and a simplified approach to managing multiple REIT investments in one fund.
Disadvantages of UK REITs
While UK REITs offer great benefits, it’s important to understand the drawbacks:
- Stamp Duty: A 0.5% stamp duty applies to all UK REIT share purchases, slightly increasing transaction costs.
- Market Volatility: REITs are sensitive to real estate market changes and broader economic conditions. A downturn in property values or rental demand can reduce dividend payouts and share prices.
- Interest Rate Sensitivity: Rising interest rates often negatively affect REITs. Higher rates increase borrowing costs for property companies, potentially lowering profits.
- Sector-Specific Risks: REIT performance varies by sector. For instance, retail REITs may struggle due to e-commerce growth, while healthcare REITs may face challenges tied to government healthcare funding.
How to Mitigate Risks:
- Diversify across multiple REIT sectors (e.g., residential, healthcare, and commercial).
- Focus on REITs with strong financials and consistent dividend histories.
Despite these risks, UK REITs remain a popular choice for investors seeking property market exposure without owning physical assets.
Final Thoughts
Investing in REITs is an excellent way to gain exposure to property markets without the hassle of owning physical properties. Platforms like eToro are perfect for beginners due to their ease of use, while IG and Interactive Brokers provide advanced tools for experienced investors.
For tax efficiency, consider investing through an ISA to maximise returns. Whether you’re looking for passive income or portfolio diversification, REITs offer a flexible and rewarding investment option. Start small, diversify, and build your property-backed portfolio today!
FAQs
Open an account on platforms like eToro, IG, or XTB. Fund your account and search for REITs or ETFs by ticker symbol. Place a buy order and start your investment journey.
Beginners should use platforms like eToro for their ease of use. Start small, focus on REIT ETFs for diversification, and gradually build your confidence in the market.
Yes, UK REITs offer tax efficiency through ISAs, regular dividends, and exposure to the growing UK property market.
Some REITs pay monthly dividends, but most pay quarterly. Check the payment schedule for your chosen REIT.
REIT dividend yields vary, but UK REITs typically offer 3%-8%, depending on the sector and performance.
Top 5 REIT Platforms
1
eToro
Capital at risk.
2
IG
Capital at risk.
3
IBKR
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and
is not responsible for the accuracy of any products or services discussed.
4
Saxo
Capital at risk.
5
XTB
Capital at risk.
