The UK’s largest insurer, which has a property fund that invests in real estate across the country is warning the UK property market could face a 12% slump in the fallout from the Covid-19 pandemic, alongside a 15% drop in commercial property.

As it released its first quarter results on 21 May, Aviva said that Covid-19 related claims will cost it £160m as the insurance sector reels from the impact of the coronavirus pandemic and the lockdowns imposed around the world. The insurer's property fund is currently suspended – meaning money cannot be withdrawn by investors – as of 18 March, amid pandemic-triggered market volatility.