Published by Global Banking & Finance Review®
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
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Landsec CEO warns of a leasing slowdown as businesses delay decisions ahead of the UK budget, fearing tax hikes.
By Raechel Thankam Job
(Reuters) -British commercial property company Land Securities said on Friday that businesses were delaying leasing decisions ahead of the UK budget later this month, fearing potential property tax increases.
Land Securities reported a drop in property valuations in the first half of its fiscal year, sending its shares down 4%.
"We see a slowdown in inquiry levels or people converting leases in this period up to the budget," CEO Mark Allan said on a media call, noting that businesses are holding off on decisions to better gauge the environment.
Businesses and consumers have been holding back on big-ticket investments amid speculation of tax hikes in Finance Minister Rachel Reeves’ budget on November 26.
"Landsec is not expensive, and with news this morning of subdued UK wage growth and the possibility of the upcoming UK budget being a clearing event, weakness today may prove to be relatively short-lived," JPM analysts said.
Landsec, which owns and manages office spaces in Central London as well as shopping centres around the UK, raised its like-for-like net rental income growth outlook to 4%-5% for fiscal 2026, up from prior forecast of 3%-4%, due to resilient growth across its prime offices and major retail assets.
EPRA earnings-per-share growth, a key metric for real estate firms, is expected to reach the top end of its target, before factoring in the impact of office property Queen Anne's Mansions sale to Arora Group.
Landsec's shares are up 6.3% this year, despite Friday's fall.
The company has been selling its non-core London office assets and increasing investments in retail and residential projects, as it grapples with depressed valuations for office assets.
It plans to cut its development pipeline to 200 million pounds ($268.42 million) by mid-2026, and pause new capital commitments on new office projects for the next 12-18 months as it pivots toward income-generating retail assets.
In the six months to September 30, EPRA net tangible assets per share - an industry measure that represents the value of its buildings - fell 1.25% to 863 pence due to disposal of low-return sites.
($1 = 0.7451 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Susan Fenton)
Property valuations are assessments of a property's market value, often conducted by professionals to determine its worth for sale, purchase, or taxation purposes.
Net rental income is the income generated from leasing property after deducting expenses such as maintenance, property management fees, and taxes.
EPRA earnings refer to a measure of earnings used by real estate companies, calculated according to the European Public Real Estate Association guidelines, which excludes certain non-recurring items.
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