Aviva Investors’ decision to shutter its UK Property fund could be the first of many permanent closures, as the real estate sector continues to struggle with the long-term impact of the Covid pandemic and a looming overhaul of daily liquidity requirements.

Aviva announced on 19 May that it would permanently close its £367m UK Property fund, saying it had become “increasingly challenging” to generate positive returns while also providing liquidity to investors wanting to cash out when it re-opened.