BL: The worst is over


British Land has reported strong results and claimed the worst drop in property values has passed.

The company returned annual results in line with analysts’ predictions and said in the first three months this year, the fall in its values slowed to only 2.2 per cent.

"We believe that property pricing is now generally much more supportable than at the market peaks," said chief executive Stephen Hester. "The worst of yield correction ‘should’ be behind us."

The firm’s underlying pre-tax profit is up and its Regent’s Place office estate rose more than 1.3 per cent in value over the last 12 months.

Mr Hester remained cautious, noting that "markets have often been known to overshoot in both directions and we do expect a further decline in the current year".

The commercial property market received further positive news as Spanish firm, Metrovacesa, agreed to complete its deal with Legal & General over the sale of Walbrook Square in the City of London, it was reported.