In the three months to the end of June, the developer and landlord posted losses of £572million, compared with a profit of £266million a year ago. Underlying profits fell to £74million from £76million.

The commercial property giant said reduced demand for office space due to the weak economy and gloomy market sentiment had hit rents.

As a result it will review the timing of the 225-metre high Cheesegrater development at Leadenhall, which was due to be completed in 2011.

“Our prime property assets will see out many economic cycles with a dependability few businesses can match,” said chief executive Stephen Hester.

“As spring follows winter, so too will property markets, in due course, see better times again.”

It said visitor numbers at its Meadowhall shopping complex in Sheffield and at other retail parks increased in the first six months of the year.