Aviva Investors has suspended dealing on its £1.8bn property fund, becoming the second asset manager to do so in less than 24 hours.

Aviva recently invested further at the 63,000 sq ft Victoria Gate - Source: Victoria Gate

Last night Standard Life Investments suspended its UK property fund following an increase in redemptions following the EU referendum.

Aviva Investors said “extraordinary market circumstances” had affected its UK Property Trust’s ability to meet redemptions.

The group said: “We have acted to safeguard the interests of all our investors by suspending dealing in the fund with immediate effect.

“Suspension of dealing will give Aviva Investors greater control in managing cashflows and conducting orderly asset sales in order to meet our obligations to investors wishing to redeem their holdings.”

Income payments to existing investors will remain unaffected.

Eyes are now fixed on the UK’s other open-ended property fundsfollowing Aviva and Standard Life’s suspensions.

Aberdeen Asset Management, Columbia Threadneeble, Kames Capital, Legal & General, and M&G have all reduced the value of their funds in the days since the Brexit vote. All these portfolios currently remain open for trading, but are on weekly review.

Before the UK vote to leave the EU property funds had already come under pressure. The IA UK Property sector endured a net £500m in outflows in April and May, according to Investment Association statistics.‚Äč