One of Britain's biggest property funds has taken steps to prevent withdrawals after the slump in commercial property prices triggered panic selling by small investors.

Scottish Equitable's move was prompted by fears of a Northern Rock-style run on the fund, which many savers had regarded as a safe haven for their pensions.

Fears that other property funds could be forced down the same route were underlined this morning by a profits warning from New Star Asset Management, the fund manager, which has seen a net outflow of funds of £500 million in the second half of the year as investors moved to withdraw their savings.

Scottish Widows is also thought to be on the verge of restricting customer withdrawals on some of its funds.

Aegon UK, which owns Scottish Equitable, admitted last night that a significant number of investors had left the fund in the past month.

Its restriction on withdrawals applies to requests for policy surrenders, requests for transfers and switches out of property funds. Payments relating to retirements and death claims will not be affected, the company said.

The £2 billion fund has 129,000 investors. Aegon said that only a “small number” of investors will be affected.

In a statement, the company said: “Aegon UK has decided to take this step to protect investors following a significant level of customer withdrawals from the UK property fund market.”

It added: “The UK property market has suffered in recent months from the worldwide phenomena relating to concerns over the US sub-prime mortgage market fallout, rising interest rates and talk of recession. Aegon UK will monitor the situation on an ongoing basis.”

In late December, Friends Provident halted access to its £1.2 billion property fund.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax