Outflows from UK property funds were at their lowest in six months during April.
Net outflows slowed by 86% month-on-month to £81m from a March record of £576m, according to analysis by funds network Calastone.
Nonetheless, April marked a 31st consecutive month of outflows from property funds. More than £5.1bn has been withdrawn during that time, or roughly £1 in every £8 under management.
Edward Glyn, head of global markets at Calastone, said: “April was a big month for fund flows overall. Across all asset classes in total, inflows reached a record £6.1bn, with investors showing a particular enthusiasm for equity funds.
“Against this backdrop of greater bullishness, less negative sentiment towards property makes sense. Investors are looking to the post-pandemic boom that seems increasingly likely to take off in a synchronised fashion across the developed world.”
Gyn added, however, that it is “too soon to call a trend of improvement for property funds”.
“The post-pandemic shape of the industry is still being drawn,” he added. “Record selling of property funds in March may simply have been an early shake out of those sellers wanting to crystallise capital losses before the end of the tax year.”
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