3 FTSE 250 shares to consider for a Stocks & Shares ISA!

I think these FTSE 250 shares have considerable long-term capital and dividend potential for ISA investors. Here’s why.

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Looking for top stocks to add to a Stocks and Shares ISA? Here are three FTSE 250 shares for savvy long-term investors to consider.

Hot property

Rental growth at residential property companies like The PRS REIT (LSE:PRSR) have slowed in recent times.

For this real estate investment trust (REIT), average like-for-like rental growth fell to 10.8% in the six months to December. This was strong, but down from 11.7% in the prior six months.

Yet, it’s believed the market may have reached an inflection point, as the number of buy-to-let investors declines and supply levels drop. The Royal Institution of Chartered Surveyors (RICS) reported a score of -21 for June for the number of new properties available for rent. This marks a steady monthly decline dating back to summer 2022.

Property shortages are especially chronic in the family homes sector in which PRS REIT operates. Though risks remain from interest rates, the possibility of receding inflation and those rising rents makes the company worth a serious look.

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.

Streaming star

The near-term outlook for ITV (LSE:ITV) isn’t nearly as encouraging today. WPP‘s shock profit warning this week underlines weakness in the advertising industry, a key source of revenues for commercial broadcasters.

The Institute of Practitioners in Advertising’s (IPA) latest Bellwether Report similarly casts a downbeat picture. This showed UK companies as a whole cut their marketing spending in quarter one, the first such drop since 2021.

However, I think the threat of prolonged weakness may be baked into the cheapness of ITV shares. They change hands on a forward-looking price-to-earnings (P/E) ratio of 8.3 times.

I see strong long-term potential for the broadcaster as the streaming revolution continues. Revenues at its hit factory ITV Studios are rising strongly as streaming companies like Disney, Netflix, and Amazon compete for new content. And viewing and user numbers for its own ITVX streaming platform continue to grow at an impressive pace.

Defence giant

The broader defence sector has continued performing strongly in 2025. But QinetiQ (LSE:QQ.) shares have been more volatile than anything else following a profit warning in March.

It explained that tough conditions in the US would see it take a £140m restructuring charge. The contract delays it’s recently experienced are an ever-present threat for businesses like this.

Yet, on balance, the outlook over a longer time horizon remains highly encouraging, at least for this stock, as the world rapidly rearms to counter perceived threats from Russia and China. The picture is especially bright in the UK, where QinetiQ sources almost 70% of total revenues. The company sees a £6bn market opportunity in its home territory alone.

The FTSE 250 firm has its fingers in many pies. It builds drones, provides cybersecurity solutions, makes surveillance sensors, and trains personnel for military scenarios. This expertise provides it with multiple growth opportunities as its global customers ramp up spending.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon, ITV, and QinetiQ Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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