UK investors withdraw £21m from property funds in April but the pace slowed significantly, to just under half the average monthly redemption figure for the past year, according to the latest Fund Flow Index from Calastone.

The April redemption total was the third best monthly figure since June 2024.

Both buy and sell orders increased in April, which Calastone said indicates renewed engagement with the sector. Crucially, buy orders rose 25% while sell orders were up just 2%, sharply reducing the net outflow.

Edward Glyn, head of global markets at Calastone said: “Higher income yields following the repricing of assets through 2024 and 2025 may be beginning to attract capital back into the asset class.

“It is too early to call a full turnaround, not least because the economic calm from the Middle East crisis is likely to turn stormy soon. Even so, the sharp slowdown in outflows suggests sentiment may be stabilising.”

Meanwhile, UK investors added a net £1.08bn to equity funds in April after a record 10-month net selling stint, making it the best month for inflows since April 2025.

According to Glyn, investors were “choosy” and only committed new capital to US equity and global equity funds, which attracted inflows of £1.14bn and £1.33bn respectively, while every other category of equity funds experienced outflows.

Glyn said: “The war in the Middle East has strangled energy and feedstock flows to large parts of the world, leaving US supplies largely intact, even if prices are higher. The expected economic fallout means that Asia and Europe – the worst affected regions – saw stock markets either flat or down during April.

“The gloomy outlook drove outflows from funds invested in most parts of the world.”