British Land says property values slid further on higher borrowing costs

British Land has seen its losses widen as property values have been further hit by higher borrowing costs.
Greg Wright
By Greg Wright
Published 13th Nov 2023, 08:59 BST

The property company said that it is expecting UK interest rates to be approaching a peak.

Its pre-tax loss more than doubled from £20m to £49m in the six months to the end of September, compared with the same period last year.

Hide Ad
Hide Ad

It came as values across the group’s property portfolio were down 2.5 per cent to £8.7bn over the half year – wiping nearly £200bn off its portfolio value year on year.

British Land has seen its losses widen as property values have been further hit by higher borrowing costs. (Photo of London Stock Exchange by PA)British Land has seen its losses widen as property values have been further hit by higher borrowing costs. (Photo of London Stock Exchange by PA)
British Land has seen its losses widen as property values have been further hit by higher borrowing costs. (Photo of London Stock Exchange by PA)

The decline was driven by rising interest rates and market expectations that rates are set to stay higher for longer.

The commercial landlord owns offices, homes and shopping centres in mixed-use areas it calls “campuses” in areas including Paddington Central, Regent’s Place and Broadgate in London.

The value of campuses slid by 4 per cent over the latest half, with higher property yields and investment impacted by “macroeconomic and geopolitical uncertainty”, the property giant said.

The value of its retail parks edged up by 0.2 per cent, with demand resilient as people opt to visit the cheaper and more accessible centres, it said.

Related topics:British LandLondon