The property industry has been caught in 'a hell of a headwind' amid the most negative sentiment for years, according to Toby Courtauld, chief executive of Great Portland Estates. Financial Times, Daily Telegraph

Yields for office properties in central London were set to rise further in the coming months as investors steer clear of commercial property, said Courtauld.

However, he insisted the outlook for the niche West End property group remained strong given its development pipeline and the prospect of more rental growth.

GPE revalued its portfolio at an equivalent yield of 5%, up 10 basis points, which the group believes is conservative. Since September prime yields had risen by a further 25 to 50 basis points from their lows, it said.

Rents on GPE’s portfolio rose 9% with an 11% rise in first-half adjusted net asset value to 660p, with the portfolio value climbing 8.9%on a like-for-like basis to £1.75bn.

Courtauld said: 'Now that the easy money has gone, it favours specialists like us.'

The shares rose 19 to 535p.