Real estate investment trusts (REITs) provide a way for investors to get exposure to the real estate market without the hassle of direct property ownership. They are a popular investment vehicle among income investors because they pay out dividends on a regular basis.

How to Invest in REITs UK can own almost any type of real estate. However, they tend to specialise in specific sectors. For example, hotel and hospitality REITs own hotels and leisure properties, while office REITs hold offices and commercial buildings. This focus allows REITs to develop expertise in their sector and attract more tenants, resulting in better rental incomes.

How to Invest in REITs UK: A Beginner’s Property Investment Guide

To be classified as a REIT, companies must own and rent out property and distribute at least 90% of their profits to shareholders. They are also exempt from corporation tax on their rental income, which increases the amount of money they can pass on to shareholders in the form of dividend payments.

As REITs are traded on stock exchanges, they can be bought and sold with ease, which makes them a convenient way to gain access to the real estate market without having to commit to direct property ownership. However, REITs are exposed to the same market fluctuations as any other share, and they may be subject to income tax, capital gains tax, or both, depending on how they are held.

To begin investing in REITs, you’ll need to open a brokerage account. If you’re a beginner, I recommend using eToro, which offers an easy-to-use platform and low fees. More advanced traders should consider IG, which offers professional-grade tools and a wide selection of UK and international REITs.