Now even the poor can’t afford to live in London’s East End, says Shelter

PUBLISHED: 13:03 08 November 2010 | UPDATED: 15:04 08 November 2010

Priced out ... council housing may soon be only place those on benefit could afford

Priced out ... council housing may soon be only place those on benefit could afford


ANYONE on housing benefit living in private rented homes will no longer be able to afford to live in London’s poverty-ridden East End within the next six years, a national housing charity warns.

Tower Hamlets—with poverty far higher than the national average—is one of five inner London boroughs that will no longer be ‘affordable’ to claimants on housing allowance by 2016, claims Shelter.

Government spending cuts put Tower Hamlets on the ‘exodus’ list with Islington, Camden, Kensington & Chelsea and Westminster, which will all have London’s highest ratios of unaffordable property.

Rents in three-quarters of the neighbourhoods across London would be out-of-reach for families on local housing benefit which is no longer to be tied to retail consumer prices, according to independent research by Cambridge University for the charity.

“Tens-of-thousands of households will be priced out of their homes and communities,” said Shlelter’s chief executive Campbell Robb.

“This will create concentrations of poverty across London, adding to the significant homeless crisis and overcrowding.”

“In just five years, huge swathes of London will become unaffordable. Cuts on this scale are going to have a devastating economic and social impact on London.”

The charity fears the Government’s proposals to cut the link to the Retail Price Index by 2013 will also “act as a disincentive to work” to those on housing allowances who have employment being forced to move away from their jobs.

The charity cites average London rent increases of 65 per cent between 1999 and 2008, while the Price index went up by just a 17 per cent.

Until now, housing benefit has kept pace. But that link is to be severed in three years’ time if the Government goes ahead with its proposal, Shelter points out.

Latest East London News Stories

Yesterday, 15:58

Children traded the classroom for curation when they took over the Museum of Childhood for the day.

Yesterday, 14:27

The owner of an Indian restaurant in Whitechapel who cooked the books in a tax swindle has been given a suspended jail sentence and a hefty fine.

Yesterday, 11:33

Bookworms, comedy fans and music lovers can enjoy a free event taking place in the borough today and tomorrow.

Yesterday, 07:00

Driverless cars and buses are set to become a common sight in Queen Elizabeth Olympic Park.

Thu, 21:04

Two men have been found guilty of killing a 60-year-old man in his Bow Common home after he wouldn’t help them to rob a drug dealer.

Thu, 15:01

Four NHS employees have abandoned razors for a month to support a health campaign.

Thu, 11:03

Bus passengers will be able to make as many journeys as they like within an hour for just £1.50 next year.

Thu, 07:00

A former Advertiser journalist who swapped news for novels has realised a childhood dream with the publication of her first book.

Newsletter Sign Up

Sign up to receive our regular email newsletter

Most read news

Show Job Lists


Having a brand new kitchen is something that lots of people want but can only dream of. Sadly keeping up to date and making our living spaces as nice as they can be is a costly and incredibly stressful business. Even a fresh coat of paint makes all the difference but isn’t easy or quick.

Who wouldn’t love the chance to go on a shopping spree. Imagine being able to walk into a shop and choose whatever your heart desires without having to worry about how much it costs.

Digital Edition


Enjoy the
Docklands and East London Advertiser
e-edition today


Education and Training


Read the
Education and Training
e-edition today

Read Now