The developer said inflation is still running at 8-10% this year.

But it added: “There is a possibility that inflation next year is lower than our forecast with early signs construction capacity is increasing as development projects are deferred or cancelled and tender prices for demolition works are stabilising.

“We have been able to place contracts competitively and 92% 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.”

British Land has a committed construction pipeline of 1.7m sq ft.

It added: “Our experience has demonstrated that some of our best performing developments, including The Leadenhall Building and 100 Liverpool Street, are those which were progressed during periods of uncertainty because they delivered into supply constrained markets.”