Office blocks

A third firm has suspended activity in the UK's biggest commercial property fund following the vote to leave the European Union.

M&G Investments has joined Aviva and Standard Life Investments in ceasing trading with the £4.4 billion fund. All three firms have said investors have requested to withdraw their money from the fund due to the uncertainty surrounding the state of the UK's future outside of the EU.

It is the first time Aviva has ever suspended trading with the fund, and Standard Life hasn't done so since the financial crisis in 2008.

Similar schemes have been placed under review by regulators as concerns over commercial property market continue to grow.

Laith Khalaf, analyst at Hargreaves Lansdown, said: "The dominos are starting to fall in the UK commercial property market, as yet another fund locks its doors on the back of outflows precipitated by the Brexit vote.

"It's probably only a matter of time before we see other funds follow suit."

Andrew Bailey, chief executive of the Financial Conduct Authority, said: "I think it does point to issues that we need to look at in the design of these things because it comes back to my fundamental point about holding illiquid assets in open end funds that revalue and are required to be revalued."