Property owners and developers face paying penalties of as much as 23pc of their loans simply to cancel long-dated interest rate swaps, according to research by advisers CBRE.
The "gigantic" break fees are hindering vital bank restructurings that aim to put property firms on a sounder footing and help support Britain's recovery.
The delays may mean that high streets and industrial parks do not receive investment and fall into disrepair, City analysts predicted. Landlords that have seen their fortunes wiped out by falling asset values and rising swap break fees, but remain nominally in charge, no longer have any financial stake in maintaining shops, offices and factories to attract tenants.
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