Asset managers in charge of UK property funds are sitting on cash piles worth hundreds of millions of pounds following a surge in investor demand since last year, and some are going so far as to 'soft close' to new money.

Major retail funds are operating with a high proportion of cash relative to historical levels. The £1.9bn Scottish Widows Investment Partnership Property Trust had 37% of its assets in cash at the end of January, according to Swip. The £1.7bn Aviva Investors Property Trust had 31%, and the £291m Henderson New Star International Property fund had 38%, according to company figures.