Bluewater owner warns of slump in developments as property values drop

Landsec says retailers are shutting shops to focus on fewer but bigger' stores

Landsec has said property values are falling and new developments are drying up because of rising interest rates, as some retailers shut shops to focus on fewer but bigger stores in the best locations.

The company, which owns the Trinity Leeds shopping centre and Bluewater in Kent, said higher construction costs and, more recently, a sharp rise in development finance costs would lead to a slump in new developments in London.