British Land has said that property values have fallen so much in 2008 that there are increasing signs of investor interest at current levels. However the property firm conceded that sentiment was still volatile.

British Land also said that its portfolio fell 10 per cent in value in the full year ended 31 March. In the final quarter the value of its portfolio dropped 2.2 per cent.

The company said that net asset value per share had fallen 20 per cent in the year to 1,344 pence, with a four per cent drop in the final quarter of the year.