The two-year slump in the UK commercial property market may be close to its bottom for the best buildings, according to Hammerson chief John Richards.

Rents are falling more slowly, which is helping to halt the decline in property values, chief executive John Richards said. Yeilds for new and recently refurbished offices, stores and warehouses in the best locations may peak in the next month, he said.

'We will see values stabilise,' Richards, 53, said in an interview at his office in the Mayfair district of central London. For prime properties, 'the occasions of tenant default or delinquency are going to continue to be rare.'