UK fiscal plans spark fears of property funds fire sale

Investors withdrawing from property funds in the United Kingdom could trigger an asset fire sale in the sector following the ongoing market reaction to the government's "mini-budget" last month, analysts have warned.

Share prices in property companies tumbled in reaction to Chancellor of the Exchequer Kwasi Kwarteng's fiscal plan to cut taxes announced on Sept 23 that he heralded as "a new approach for a new era".

The Financial Times reported on Monday that more than 100 million pounds ($111 million) was withdrawn from property funds tracked by fund trading provider Calastone in the 10 days after Kwarteng's announcement. It said this was almost eight times the amount withdrawn over the previous three weeks.