Scottish Widows has introduced a six month lock in on its Life Property Fund.

The fund manager has introduced the 180-day delay in order to give it a chance to generate ‘fair value’ from the sale of assets if it is forced to through redemptions.

The 180-day period starts from the day each investor requests to switch out of or withdraw money from the fund.

‘In the current economic conditions, and particularly since October 2008, there are fewer buyers of commercial property than usual,’ said a statement from the Edinburgh-based company.

‘In turn, this means that we’re unable to sell enough properties at prices we believe reflect their fair value which has again lowered the cash level of the fund.

‘In these exceptional circumstances we are taking this action to be fair to all policyholders who are invested in the fund.’

Scottish Widows introduced a similar delay for the first time in January last year and lifted it in August after being able to ‘sell enough properties at fair prices to restore the cash levels in the fund.’

Benefits will be paid out as normal in circumstances of death, critical illness claims and at a policy’s maturity date. Existing regular withdrawals are also unaffected.