The asset manager had previously announced it would limit redemptions for Q2 due at the end of September, and is now deferring withdrawals that were originally due to be paid at the end of December.
Since September, other players including Schroders, Columbia Threadneedle, M&G and CBRE have also restricted withdrawals from their UK property funds to limit liquidity pressures as investors rushed for the exits in light of rising interest rates and a gloomy economic outlook.
UK property funds impose liquidity limits - reports
However, much of the redemption demand is from British pension funds, which have had to cut back on their exposure to illiquid assets partly due to the so-called "denominator effect", which led institutional investors to exceed their target allocations for property and other private assets.
This is not the first time in recent memory UK property funds have had to limit withdrawals. In 2020, at the onset of the Covid-19 pandemic, several funds had to restrict redemptions to both retail and institutional investors, while the Brexit vote in 2016 also caused widespread suspensions.
BlackRock declined to comment for this story.