Scottish Widows has become the latest institution to halt withdrawals from a property fund.

A 180-day delay period will be enforced on its £596m Life Property Fund over concerns that policyholders could pull out because of the dramatic slump in the commercial property market.

The group’s decision to bar redemptions follows similar moves by Norwich Union and Standard Life. Scottish Widows, which is owned by Lloyds Banking Group, also enforced a delay on the life fund, which has 35,000 policyholders, last January but lifted it in August.

Daily Telegraph