As much as 40 per cent of new shopping centre space could be shelved or delayed because of decreasing retailer demand and the increasing scarcity of finance, according to property agency Savills.

Developers are finding it harder to secure financial backing for schemes, as the ripples from the US credit crisis continue to hit the UK economy.

Savills’ findings come as developers face increasingly torrid market conditions, with retailer demand dropping as a wave of new development comes to fruition this year.

An estimated 50 million to 80 million sq ft (4.6 million to 7.4 million sq m) of shopping centre space is due for completion in the next five to seven years. More than 13 shopping centres are expected to be completed this year alone.

They include Australian developer Westfield’s£1.6 billion scheme in West London and Grosvenor’s 42-acre Liverpool One development.

Three schemes that have already been suspended – at Newport in Wales, Dumfries in Scotland and Chester – were worth a total of£600 million.

Developers and landlords are also under pressure because of new legislation, including changes to the laws governing empty property, which came into effect on April 1.

Since the changes, rates have doubled for landlords who are unable to fill properties for more than three months, costing many developers hundreds of thousands of pounds.

And retailers are increasingly calling the shots in rent negotiations, as landlords are forced to offer soft deals and enticements to secure key retailers to their centres.

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