Property funds experienced outflows of £79m in October, the second consecutive month of elevated outflows, according to the latest Fund Flow Index from Calastone.

Investors are continuing to withdraw money from property despite signs earlier in the year that sentiment was stabilising, although Calastone added that it observed “less negative” investor behaviour between May and August.

Its latest data suggests confidence remains fragile, with investors either rebalancing their portfolios away from property or holding back amid broader economic uncertainty.

In the wider funds industry, equity funds suffered record £3.63bn outflows in October. Net withdrawals from property funds was similar to the September total of £85m.

Calastone said this was driven more strongly by a sharp increase in the value of sell orders rather than a buyers’ strike. This pattern held steady in October.

Nerves about global asset prices and the tax implications of the impending Budget were the two key forces to rattle investors in October, Calastone reported.

Edward Glyn, head of global markets at Calastone, said global asset prices were less of a worry for property fund investors, but a general ‘risk-off’ attitude had spread from equities, which is why money market funds and fixed- income products are garnering inflows.

Meanwhile, the potential for Budget tax rises have led some investors to crystalise capital gains, which also drove an uptick in selling this time last year.

Glyn said: “For many others, it’s about pensions. The tax-free lump sum that over 55s may draw from their pensions is such a vital part of most people’s retirement planning that the risk it will be scrapped or drastically scaled back is simply too concerning for many diligent pension savers in their 50s and beyond to contemplate.”