The property sector has been in the spotlight since Brexit, when redemptions led to gating of funds.
Both the FCA and Bank of England have since reviewed the liquidity mismatch between funds and their underlying assets.
While weaker sterling encouraged institutional money into the asset class, the UK’s snap general election led to a disappointing end to Q2. Investment Association figures show net outflows of £2m compared to inflows of £56m in May and £69m in April.
Funds in the sector must invest at least 60 per cent of assets into direct property or 80 per cent into property securities.