@woddyisland This could be a good practice. This is usually implemented when working on large website that has a lot of content. In this way you can manage everything easily.
On the other side, this can affect the SEO somehow. Let's suppose your domain authority is increasing by getting good backlinks and you are getting good traffic. You need to pass that to blog WordPress directory manually. You can add a link to that by using crawl depth equal to 1. In this way you may not lose SEO. Make sure to have the best technical SEO practices. I can help on that if needed.