Investors took £470m from property funds in July, figures from data group Morningstar show.

It is believed many investors reinvested their cash in other types of UK funds specialising in assets considered as less risky, such as corporate and government bonds.

In total, the net outflow from UK-domiciled funds was almost £5bn - the heaviest level of redemptions in at least three years.

Ali Masarwah, EMEA editorial director for Morningstar, said: “While the decision by voters in the UK to exit the European Union caused substantial short-term market volatility and has likely been a major factor behind European investors´ lack of appetite for equity funds, outflows from funds investing in UK equities and bonds have remained unspectacular considering the issue at stake.”