Subject to regulatory approval, Host Capital has suspended its £18.1 million UK Student Accommodation fund with immediate effect and has proposed its closure.

The Property Authorised Investment Fund (PAIF) was launched in November 2012 and was suspended with immediate effect on November 1.

Reports indicate the fund had assets under management totalling £42.8 million in November 2013 but this had fallen to a low of £15m in August 2016.

The closure follows a volatile time for the UK property sector, with several funds adjusting their pricing or suspending trading following valuation concerns driven by June's Brexit vote.

According to FE, the UK Student Accommodation fund had generated returns of 8.9% over the last three years, compared to an IA Property sector average of 27.1%. The fund had also underperformed compared to the market in the short term, returning 1.9% versus a sector average of 5.2% over six months.