An £80 million mixed development project in Cumbria, North West England, is one of the latest casualties of the credit crunch as analysts warn that many more schemes in the UK are likely to be halted.
In particular it is a lack of finance and the banks withdrawing funds that are threatening many developments, they claim.
A £600 million city centre project in Sheffield has been delayed. Work on Sevenstone, a new retail quarter, now won't start before the end of next year.
In the commercial property sector in Scotland, a number of developments have been put on hold. In Glasgow, Buccleuch Property's 71,008 square feet development in the city centre has been halted, as has Gladedale Capital's 100,000 square feet Broomielaw project.
Commentators say this is a result of too many developments in the pipeline and a lack of funding.
The town centre regeneration project in Penrith, Cumbria, has been stopped part way through construction because its bank has pulled its development finance and highlights the fact that major retailers will have to delay the opening of new stores.
Developer Lowther Manelli had started constructing its Penrith New Squares scheme, which was intended to deliver 145,000 sq ft of shops, 200 homes and 12,000 sq ft of offices.
It is midway through construction on the scheme's multi storey car park and a 55,000 sq ft supermarket which has been pre-let to Sainsburys but stopped after the National Australia Bank, which owns Clydesdale Bank and Yorkshire Bank, pulled the funding.
'Citing concerns with the current state of the market particularly the commercial and residential sectors as its reason, National Australia Bank has withdrawn its project funding for Penrith New Squares,' a company statement said.
The company is now seeking new long term funding. It is not clear when the Sainsbury store will now open. Other retailers including JJB Sports and New Look have agreed to take space.
'Nobody can get a loan if you are a developer. Conditions are very difficult especially in the UK and US,' said Kenneth Simonson, chief economist for Associated General Contractors.
There is also concern about how this will affect the future of high profile retailers. John Lewis is another major retailer who has seen construction of future stores affected. The credit crunch is affecting a development in Leeds where the retailer hopes to open a new store. The main construction phase of the Eastgate mixed development scheme is now unlikely to start as planned in 2009.