A Stocks and Shares ISA is one of the most powerful wealth-building tools available to UK investors. Every penny of growth and income sits completely outside the reach of HMRC
And right now, as buy-to-let landlords face yet another wave of tax hikes and regulatory burdens, the contrast has never been starker.
The good news? An ISA doesn’t mean giving up real estate exposure entirely.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
The case for commercial property
Real estate investment trusts (REITs) allow investors to own a slice of institutional-grade property assets. Think warehouses, data centres, logistics parks, supermarkets, even hospitals – all without needing to take on a massive mortgage or deal with tenant disputes.
And with UK REITs still trading at an average 10%-20% discount to net asset value following years of interest rate pressure, the entry point today looks genuinely attractive.
So which property stock should investors be looking at today?
One that institutional analysts are particularly excited about right now is SEGRO (LSE:SGRO), a FTSE 100 owner and developer of warehouses, logistics parks, and urban industrial facilities across the UK and Europe.
Is SEGRO a good investment?
SEGRO’s the kind of business that quietly builds wealth over long periods. It owns over 10 million square metres of industrial and logistics space across eight countries, with a portfolio valued at around £22bn.
The structural tailwinds behind the business are compelling.
The rise of e-commerce requires vast amounts of last-mile logistics space close to urban centres. And demand has remained robust even through the interest rate cycle, with a record level of new rent secured in 2025 and vacancy falling back to 5%, within management’s target range.
In 2026, the company contracted £23m of new headline rent in the first three months of the year alone. And consequently, analysts are now projecting for the group’s earnings per share to rise from 36.6p in 2025 to 38.5p by the end of 2026 and then 40.2p in 2027.
However, despite posting some solid numbers, there remain a few weak spots.
Market rental growth softened to just 2% in 2025, well below the 4%-6% range analysts enjoyed during the post-pandemic logistics boom. The impact of this was mostly offset by existing leases renewing at higher rates. But this may simply be masking a larger long-term issue.