For international investors seeking exposure to the UK property market without the complexities of direct ownership, Real Estate Investment Trusts (REITs) offer a practical, tax-efficient solution. UK REITs allow foreigners to invest in diversified property portfolios – from office buildings and retail centres to residential and industrial assets – while benefiting from liquidity, dividends, and regulated oversight.
Fraser Bond offers expert insight into navigating the UK REIT landscape, helping foreign investors identify opportunities, manage risk, and align their real estate investments with long-term financial goals.
A UK REIT is a publicly listed company that owns and manages income-producing real estate. It is structured to pass the majority of its rental income to shareholders in the form of dividends. REITs must adhere to specific regulations, including:
90% minimum income distribution to investors
At least 75% of gross assets and profits must come from UK real estate
Listing on a recognised UK stock exchange
Tax exemptions at the corporate level for qualifying rental income
For foreign investors, UK REITs provide an indirect but transparent route to benefit from the performance of commercial and residential property markets without physically owning or managing assets.
Investing in a REIT allows foreigners to gain exposure to multi-million-pound assets – including shopping centres, business parks, logistics warehouses, and luxury developments – with relatively low capital outlay.
UK REITs distribute the majority of their rental income to shareholders. For many investors, this means regular, stable income – particularly attractive during global economic uncertainty.
Unlike direct property ownership, REIT shares are traded on stock exchanges, allowing investors to buy or sell quickly without the need for complex conveyancing.
REITs typically hold a portfolio of properties, reducing reliance on a single asset or location and offering exposure to multiple sectors of the UK economy.
While REIT dividends are subject to withholding tax, the structure remains efficient for many overseas investors, especially when held through tax-advantaged accounts or corporate entities.
While investment decisions should always align with individual objectives, here are examples of well-known UK REITs that attract global attention:
British Land (BLND) – Focuses on offices and retail across London and major cities
Landsec (LAND) – Owns flagship commercial assets, including Piccadilly Lights and shopping centres
SEGRO (SGRO) – A leading logistics and industrial REIT, with strong demand driven by e-commerce
Unite Group (UTG) – Specialises in student accommodation across the UK
Tritax Big Box (BBOX) – Invests in large-scale distribution and logistics warehouses
UK REIT dividends are typically subject to a 20% withholding tax for non-residents, though this may be reduced through double taxation treaties. Professional advice is essential to structure investments efficiently.
As REIT shares and dividends are denominated in GBP, currency fluctuations may affect returns for foreign investors.
REIT prices can fluctuate based on interest rates, inflation expectations, and broader market sentiment. Investors must weigh income stability against potential capital value swings.
Foreign investors should ensure access to UK financial markets through a suitable broker or investment platform and understand relevant disclosure requirements.
Fraser Bond works closely with international investors to ensure their UK real estate strategies – including REIT investments – are aligned with their goals and risk appetite. Our services include:
Education and market insights to help clients understand UK REIT performance and structure
Connection to UK-based investment platforms or brokers
Portfolio advisory for clients seeking to combine REITs with direct UK property assets
Tax planning and legal coordination through trusted professional partners
Ongoing monitoring and reporting to keep investors updated on market shifts and REIT performance
UK REITs offer a flexible, transparent, and income-generating route for foreigners to participate in one of the world’s most sought-after property markets. With the right guidance, they can form a core component of a global investment portfolio – blending the benefits of real estate with the simplicity of listed equities.
Fraser Bond stands ready to help overseas investors unlock the UK REIT market, with tailored advice, reliable market access, and ongoing support for long-term success.
