Last year marked the sixth consecutive year of property fund outflows, according to global funds network Calastone.
A total of almost £1.2bn was taken out of property funds in 2024, said Calastone, with December marking the 24th consecutive month of net selling, with £153m leaving the sector.
Calastone said the increased outflow was driven in particular by reduced buying activity, rather than by a rising appetite to exit the sector.
Buy orders of £1.8bn were less than half their 2015-2022 average and fell by 16.2% year-on-year in 2024. Sell orders fell by 6.5% in 2024 to £2.9bn.
The weak picture for the property sector came even as equity fund inflows surged to a record £27.2bn in 2024, driven by global and North American funds.
Edward Glyn, head of global markets at Calastone, said: “The red-hot US stock market dominated the scene in 2024 as investors piled into fund sectors with the biggest exposure.
“For the UK property sector, attracting buyers has become increasingly difficult. The choice of funds available has fallen, restrictions on liquidity deter those who might want access to their cash and the macroeconomic picture is challenging – high interest rates in particular reduce the attractiveness of property.”
Glyn added: “Unfortunately, 2025 offers little in the way of hope for inflows into property funds.”
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