Land Securities upbeat about the future

Land Securities chief executive Francis Salway said: "Market conditions in our sectors are slightly more favourable than we expected at this point, with low gilt yields supporting buying interest from investors and the growth plans of large companies generating take-up of space.

"We are nevertheless alive to the potential impact of tax increases and public sector job cuts, and we maintain our medium term view of a recovery in property values, albeit interspersed with ripples," he said.

The company said the total value of its property portfolio, which includes the White Rose shopping centre in Leeds, increased 3.4 per cent to 9.7bn at the end of September.

Land Securities said it has committed to start developments costing over 1bn since the start of 2010, and these have started contributing to returns with development valuation gains of just under 10 per cent in the six months to September 30.