Are these the best REIT stocks and ETFs in the UK?

How to trade or invest in REITs

Before trading or investing in any REIT, it’s important to do your research. Make sure you understand the limitations and risks involved with REIT investing, and decide whether you would rather trade or invest directly in REIT stocks and shares, or pool your money in an ETF, which offers access to a range of funds within one position.

1. Choose whether to trade or invest
2. Create an account or log in
3. Take steps to manage your risk
4. Open and monitor your position

Since spread bets and CFDs are leveraged, it’s important that you take steps to manage your risk because leverage can increase both your profits and your losses.

Learn more about the impact of leverage on your trading

Investing in REITS is different to trading because when you invest, you’re taking direct ownership rather than just speculating on share prices. Leverage isn’t available for investments, so you’ll need to commit the full value of the position upfront. While this can increase your initial outlay, it also caps your risk.

With us, you can invest from £3 commission on UK shares, if you’ve opened three or more positions on your share dealing account in the previous month. Remember that investments can fall in value as well as rise, so you may receive less back than you initially invested.

What are REITS?

REITs are property trusts which invest in different types of property, generating income and capital appreciation. Investors and traders can access REIT stocks directly via companies such as British Land, or via a dedicated exchange traded fund (ETF) which tracks an index performance.

ETFs offer exposure to multiple stocks, shares and funds with one investment, so that you can ensure that you have a highly diversified portfolio, rather than relying on the performance of one or two REIT stocks.

How do REITS work?

REITs generate returns through value growth in property and rental income, distributing most of their profits to shareholders as dividends. Their performance is influenced by a range of factors including economic conditions, interest rates and demand within specific property sectors.

Types of REITs:

• Industrial REITs – Focus on warehouses and logistics centres, often benefiting from e-commerce growth
• Retail REITs – Invest in shopping centres and high street properties, typically more sensitive to consumer spending
• Office REITs – Own office buildings, with performance linked to business demand and flexible working trends
• Residential REITs – Focus on rental housing, including apartments and student accommodation
• Specialist REITs – Invest in niche sectors such as healthcare, data centres, or infrastructure

The best REIT for you will depend upon your individual risk profile and the type of market you want to access. For instance, a trader may want to invest in a REIT ETF which has a high degree of liquidity; whereas a long-term investor may prefer to take a long position in an up-and-coming REIT stock.

Best UK REIT stocks to watch

1. British Land REIT
2. Secure Income REIT
3. Triple Point Social Housing REIT

British Land REIT

One of the best UK REITs, British Land is a FTSE 100 company which has been operating as a REIT since 2007. The company itself has been in existence since 1856 with one simple remit – to buy and sell British land.

By the end of March 2020, the company’s portfolio was valued at £11 billion, although it is believed to have lost approximately £1 billion due to the Covid-19 pandemic. British Land owns more than 50 acres of central London, including iconic locations such as Broadgate, Regent’s Place, and Paddington Central.

As a REIT, 90% of the company’s tax-exempt profits must be distributed to shareholders. It pays dividends twice a year, with each dividend usually amounting to between 6p and 8p per share.

Secure Income REIT

Another REIT with a UK focus, the Secure Income REIT specialises in generating long term, inflation protected income from real estate investments across the country. Long-term tenants include Merlin Entertainment, and Travelodge Hotels, as well as a number of private hospitals and High Street pubs. By January 2026, its portfolio was valued at just under 300 million.

This eclectic portfolio offers a cross-section of the UK commercial property space in a single investment. Although it's bever gauranteed, the company has consistently paid a dividend of 4-5p for the past 5 years.

Triple Point Social Housing REIT

One of the best REITs for community-minded investors, the Triple Point Social Housing REIT has tapped into the growing ESG trend with its social housing REIT. Established in 2017, its primary objective is to invest in social housing assets across the UK, with a particular focus on supported housing.

Since its IPO, the Triple Point Social Housing REIT has acquired 445 supported housing properties with a total value of approximately £571.5 million.

During 2020, the group extended a revolving credit facility to buy up a number of new properties, while continuing to pay out a dividend of 1.295p per ordinary share on a quarterly basis.

Best UK REIT ETFs to watch

1. Vanguard REIT ETF

Vanguard REIT ETF

If you find it hard to select the best REIT in the UK, a US-focused REIT ETF may be right for you. The Vanguard REIT ETF looks beyond the UK to track the MSCI US Investable Market Real Estate 25/50 Index. It does this by investing in REITs, companies that purchase office buildings, hotels, and other types of commercial and residential real estate.

Since its launch in 2004, the $73 billion (£51.5 billion) fund has returned more than 9% in annualised average returns to its investors, making it an attractive long bet. Although the REIT has had a difficult few years largely due to high interest rates, it's slowly starting to recover. 

Best REITS stocks and ETFs summed up

• UK REITs and REIT ETFs provide a way to invest in property markets without directly owning real estate, offering potential income through dividends and long-term capital growth
• REITs generate returns from rental income and property value increases, but performance is influenced by interest rates, economic conditions, and sector demand
• Different types of REITs (industrial, retail, office, residential and specialist) perform differently depending on market trends and economic cycles
• UK REITs such as British Land, Secure Income REIT and Triple Point Social Housing REIT offer varied exposure across commercial and social housing sectors
• REIT ETFs, including UK-focused and global options, provide diversified access to property markets but remain sensitive to wider market volatility