Residents will no doubt have to pay a price for their authority’s risk taking and subsequent bankruptcy

Winning in the rollercoaster business of commercial property development is hard. Look at the share prices of the two FTSE 100 titans, regarded as the most diversified and solid operators in the sector. Since the financial crisis of 2008-09, which caused commercial property prices to crater, Landsec’s shares have been as low as 350p and as high as £13 and are currently 626p. British Land’s trajectory is similar.

Their investors collect dividends (most of the time), largely funded from rental income, but they also know that the value of the assets can be volatile. Less diversified firms have done much worse. Intu, a former shopping centre giant, collapsed in 2020 and an air of financial crisis has hovered over Hammerson for years. This is territory for conservative financing and strong risk-management safeguards.