The co-manager of the £826.6m Schroder Global Property Securities fund said he feared that a change in the tax treatment of property owned by foreign individuals could “kill” the London market, as it has been driven in recent years by non-domiciled wealthy individuals seeking a safe haven for their cash.
Deputy prime minister Nick Clegg said last month that the government was considering tightening the tax rules regarding foreign ownership of property in a bid to tackle a “bubble” in London.
Mr Rehlaender said: “I am nervous about the UK but at the moment companies keep finding new deals and making money.
“London has been defying gravity. We have been taking money off the table because valuations are stretched.”
However, the manager emphasised that he was only selling small amounts.