Investors are pulling their money out of property funds at a rate not seen since the chaos of the mini-Budget last autumn.
A net £121m was withdrawn from property funds in August, according to Calastone, with outflows recorded in each of the past 13 months.
August’s decline was the largest since October last year when the government’s mini-Budget unnerved bond markets and sent yields and borrowing costs sharply higher.
So far this year investors have pulled £428m from property funds.
“Higher yields elsewhere make property relatively less attractive and put pressure on asset valuations,” said Edward Glyn of Calastone. “This had investors running for the safety of cash and money market funds.”
