In September, outflows from open-ended property funds returned to similar levels seen in January as a small number of funds reopened – but they are not expected to now soar to the record levels seen in March.

According to global funds network Calastone, redemptions from property funds in September totalled £83m, compared with just £9m in August and £14m in July, when most funds were closed.

In January, outflows stood at £83m but rose to £118m in March. Most funds were then gated after valuers invoked a material uncertainty clause amid concerns they were unable to accurately value portfolios.

While experts say many funds could remain gated until 2021, some have reopened. At the start of September, St James’s Place reopened its three UK commercial property funds and on 17 September, Columbia Threadneedle ended the suspension of its Threadneedle UK Property Authorised Investment Fund and its feeder fund, the UK Property Authorised Trust.

Redemptions were not likely to return to the record levels seen in March, independent consultant John Forbes told Property Week.

”Investors are calming down a bit as the message is getting through that the Financial Conduct Authority [FCA] is not going to do anything instant, so I think more are waiting to see what eventually transpires by way of regulatory change,” he said.

In August, the FCA launched a consultation to address “the potential harm caused by a mismatch in liquidity in certain UK authorised funds that invest directly in property, for example offices, shops and warehouses”.

The FCA proposed that investors give notice of up to 180 days before redeeming their investment.

Experts criticised the one-size-fits-all approach, pointing out that investors would not know the price at which they could redeem their investment until the end of the notice period, leaving them vulnerable to a fall in value during that time.

The consultation ends in November and the FCA will publish guidance next year.