In search of prime development and dividend shares to purchase for a Shares and Shares ISA? Listed below are two from the FTSE 100 and FTSE 250 I consider benefit critical consideration.

Berkeley

Investing in housebuilders like Berkeley (LSE:BKG) carries higher-than-usual danger proper now. Construct price pressures stay important, whereas on the demand aspect, a tricky outlook for the UK financial system threatens future gross sales.

On the brilliant aspect nevertheless, rates of interest nonetheless look on target to fall steadily within the months forward. And if homebuyer demand following current charge cuts is something to go by, builders may expertise a robust rebound in 2025.

Issues are trying notably thrilling within the London market proper now. That is excellent news for Berkeley, which specialises in building within the capital and surrounding areas.

On Tuesday (28 January), London-focused property agent Foxtons stated it was dealing with the best variety of houses beneath supply because the Brexit referendum in 2016. It added that volumes had been “substantially” greater than these seen a yr in the past and mirrored “sturdy under-offer exercise within the fourth quarter.“

This follows Berkeley’s assertion in early December that gross sales had skilled “a slight uptick in current weeks“.

As soon as once more, it’s too early to say that the housebuilders are out of bother simply but. However a extra beneficial rate of interest atmosphere, allied with authorities plans to construct 1.5m new houses within the 5 years to 2029, means business earnings may enhance considerably.

Berkeley’s plans to capitalise on London’s white-hot leases market offers it added scope to develop income, too. In June, the corporate introduced it intends to place up 4,000 build-to-rent properties over the following decade.

In the present day Berkeley shares commerce on a ahead price-to-earnings (P/E) ratio of 10.7 instances. That is decrease than the corresponding readings of fellow FTSE 100 housebuilders Taylor Wimpey, Barratt Redrow and Persimmon.

All issues thought of, I feel Berkeley’s a terrific restoration inventory to think about.

AJ Bell

Retail funding platforms are different UK shares with appreciable long-term development potential. With the UK’s aged inhabitants quickly rising, and peoples’ engagement in monetary planing additionally rising, sector revenues may get pleasure from sturdy and sustained growth.

FTSE 250-listed AJ Bell (LSE:AJB) is one such firm I really feel is worthy o shut consideration. A powerful set of financials at present (29 January) has as soon as once more underlined the agency’s appreciable development potential.

As of December, the monetary companies large had 561,000 clients on its books. This represented a 4% quarter-on-quarter enhance, and a mammoth 16% rise on an annual foundation.

As a consequence, complete property beneath administration (AUA) leapt 17% yr on yr to £89.5bn.

Whereas its market has room for substantial development, fierce competitors means AJ Bell is in no way assured to succeed. However ongoing platform funding, rising model consciousness and engaging pricing places it in a robust place.

Its ahead P/E ratio of 19.5 instances appears toppy on paper. Nonetheless, I consider AJ Bell’s sturdy momentum in a rising market means its shares are worthy of a premium ranking and additional research.