The mini-Budget has been the butterfly flap that caused a tornado for property funds.
Buyers have fallen out of the market as the cost of borrowing soared with hours of the chancellor announcing his tax-cutting plans.
Those buyers that are left are demanding price cuts of 20% from forced sellers, while those unwilling to lose value are withdrawing assets from sale.
Columbia Threadneedle had to gate its £453m UK Property Authorised Investment Fund and its feeder fund after running out of cash to pay exiting investors. Others could follow suit.
Data from Calastone shows that, in the two-and-a-half weeks since the mini-Budget, £190m has been withdrawn from property funds by investors. That compares with about £14m in the three weeks previously.
