No more 'easy money' for property investors as Brexit fears add to headwinds

Property funds have been key beneficiaries of investors' hunt for yield in recent years, with the IA Property sector in the top five most popular investment classifications for the past two years. A record £3.8bn of flows was taken in 2014, backed up by £2.7bn in 2015.

Strong performance drove inflows, with the IPD UK Annual Property index recording a 12-month total return of 13.1% in 2015, versus -2.2% for equities and 1% for bonds. Meanwhile, the IPD Global Quarterly Property Fund index also recorded its strongest performance since March 2011 in 2015, with a 12-month total return of 12%. Yet market uncertainty and Brexit fears have put the brakes on commercial property, with the International Monetary Fund's Christine Lagarde last week warning high levels of household debt, combined with rapid house price growth and the European Union referendum o...