Industry experts say that property funds frozen in the wake of the coronavirus crisis could stay shuttered for many more months, as the outlook for the sector remains unclear.

While the government has allowed the housing market to restart, low transaction volumes and an uncertain future for retail and commercial space means that valuations are still practically impossible.

A host of property funds were suspended in March because independent valuers declared there was “material uncertainty” in putting a value on their assets, and the FCA requires daily-traded funds to shut when this is the case for over a fifth of a funds’ assets.

It had been hoped that, by easing lockdown to exempt property viewings and valuations, as the government did in May, this would kickstart the market again and allow more certain valuations to be set.

But Reuters’ discussions with the industry suggest a dearth of transactions, meaning it is still impossible to accurately assess the worth of holdings.

The funds will probably not open again before September, the sources told the news agency.

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