Land Securities is getting ready to return to the investment and development markets for the first time since the market slump began two years ago, as the UK's largest property company signals the next stage in its recovery strategy.

As recently as three months ago, Francis Salway, chief executive of the real estate investment trust, struck a cautious tone on a recovery. But yesterday he painted a more positive picture of prospects for the sector, which has seen values fall 44 per cent since the peak in 2007.