In its result statement to the city this morning British Land said: “Our inflation forecast (based on tender price inflation) has increased to around 8-10% in 2022 from our previous forecast of 4.5%, but we expect that to moderate over the next 18 months as wages and commodity prices remain elevated but do not increase at the same rate.

“Our forecast for 2023 and 2024 is around 4-5% (from 3.5%). We expect the rate of increase to moderate and capacity to emerge as some development projects in the market are deferred or cancelled.

“We review inflation drivers to ensure our contingencies and cost plans are robust to deal with the market fluctuations.

“Having maintained momentum on our development programme throughout the pandemic, we have been able to place contracts competitively and 91% of costs are fixed on committed developments.

“We have built up excellent relationships with Tier 1 contractors and throughout our supply chain so we are confident of placing mutually attractive contracts for our near term developments.”

The developer currently has a committed pipeline of 1.7m sq ft and a medium term pipeline of 7.8m sq ft of schemes.