British Land confirmed it will halt development on its landmark City skyscraper known as the Cheesegrater as demand for office space in the financial sector continues to decline.

The decision was welcomed by investors but this fails to hide one of the most bearish statements to date on the property sector.

In fact, such were the worries over British Land’s building programme in the City office market – a sector being hard hit by falling rents and increasing vacancy rates – that a story circulated in the City that as soon as the demolition team finished for the evening at 122 Leadenhall – the site of the delayed tower – the company’s management would go in to replace the bricks.

Financial Times, The Times, Daily Telegraph