Savers abandon property

PROPERTY funds have seen the biggest weekly exodus since the Brexit vote more than three years ago, as investors fear they will be blocked from getting access to their money.

Savers have pulled almost £200m out of property funds in the week since M&G suspended its £2.5bn Property Portfolio following a rush of withdrawals.

Data compiled by funds network Calastone reveals a net £193m has left daily traded property funds since the suspension last Wednesday.

The figures have fuelled concerns that other funds will be suspended to give investment firms time to sell enough property to refund investors clamouring to take their money elsewhere.

It means more money has been withdrawn in a week than in a typical month.

Since outflows increased more than a year ago, £176m on average has been withdrawn from property funds every month.

Experts say investors have shunned property over concerns about the impact Brexit will have on the market.

Edward Glyn, head of global markets at Calastone, said: ‘The outflows from property funds are the worst since the immediate aftermath of the Brexit referendum, making the current flurry the second-worst week we have on record for the sector.’