Quintain has warned that market conditions could get worse before they get better but said the UK was not in for a long-term recession. Daily Telegraph

Speaking as the company reported a 6.1% rise in NAV, chief executive Adrian Wyatt said: 'There is the prospect of stagflation reappearing but a recession is likely to be avoided – though it could be a narrow thing.'

He said that there would be little or no growth in the UK’s rental market for office and retail in 2008 and he expects short-term interest rates to be managed downwards. 'Inflation is better than meltdown. But for a company such as Quintain, uncertainty creates opportunity,' he added.

Quintain’s shares, which have fallen 37% this year, rose 9 to 569.25p. An interim dividend of 3.75p is payable on January 18.