Aberdeen Asset Management has cut the levy on withdrawing from its UK property funds, as the number of investor redemption requests slumped after the initial shock of the EU referendum.

The company has reduced the dilution adjustment from 17 to 7 per cent on both its UK property fund and the UK Property Feeder Unit Trust.

This will reduce the hit that investors take when selling out of the fund. The company said that the changes reflect the reduction in the amount of redemptions by investors in the last week and a rise in its cash balances after a number of sales.

Chief Executive Martin Gilbert said: “I am pleased that we have been able to reduce the temporary dilution adjustment applied to the Funds significantly, reflecting the reduced levels of redemptions the Funds have seen and the rebuilding of the Funds’ cash levels. In all of this, our focus has been to treat all customers fairly by providing liquidity to those who wish to redeem whilst protecting the interests of long-term investors.”

He added: “Our hope is that trading in the funds continues to revert to more normal levels. This should allow us, in time, to remove the dilution adjustment altogether. The post-referendum environment now seems to be settling down with thoughts of reducing property holdings being balanced by the fundamental long-term attractions of the asset class.”

Aberdeen Asset Management lifted the suspension on investors withdrawing money from the funds on July 13, after freezing exits in the wake of Britain’s vote to leave the European Union, much like many other property funds.

Andrew Bailey, chief executive of the Financial Conduct Authority which regulates property funds, told Britain’s parliament on Wednesday there was a need to avoid fire sales of property to meet redemption requests from investors.

“The latest evidence we have is that the position is stabilising, the pattern of withdrawal requests versus investment requests has gone much more into balance,” Bailey said.

More than 18 billion pounds in UK commercial property funds were frozen in early July following a tide of redemption requests.

Aberdeen Asset Management said it applied the dilution adjustment to reflect the fact that properties would have to be sold for below market value in order to provide liquidity.