British Land sees portfolio drop 11%

Posted: 20 Nov 2008 12:13:54 GMT

British Land's property portfolio had 10.8 per cent sliced from its value in the first six months of the year, the company has reported.

Both the credit crunch and the subsequent financial crisis, which increased construction costs and lowered demand for property, have had an effect on the portfolio which mirrors the problems facing the housing market.

British Land remained upbeat, however, with chairman Chris Gibson-Smith arguing: "Against a backdrop of heightened stress in the markets British Land continues to operate well.

"While values have been marked down reflecting further softening in prime yields, our high occupancy levels and long leases, plus a diversity of tenants and industries, ensure cash flow security."

With house prices dropping the opportunity to buy is still slim as mortgage lenders are demanding high deposits before buyers are considered for a loan.

When this is compounded with high estate agent fees the barriers to buying a home still remain apparent.

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