A commercial property fund open to retail investors and managed by Aviva has been forced to suspend trading, raising fears UK property funds could be facing another run on cash almost a year after the last crisis.

Aviva blamed a “rapid increase in the level of redemptions over the last few weeks” in the £387m European Property Fund that has caused a lack of immediate liquidity. It has been trying to sell property to generate cash to pay investors but has been hampered by a freeze in commercial property investment markets.