Tower Hamlets (Parliament Politics Magazine) – Leila’s shop in Tower Hamlets threatened by a staggering 300 % rent rise, facing imminent closure as landlords impose unaffordable hikes on small traders.
The store often offers work experience chances to locals, organizes cooking classes, and sells fresh vegetables. However, the Tower Hamlets council-approved increase would “immediately” shut down the company.
Leila McAlister took on the shop 23 years ago after it had stood empty and derelict for more than 10 years in Bethnal Green. She said:
“Arnold Circus was a crime hotspot. I’ve done an enormous amount of community and voluntary work so I consider myself a good value tenant but these things are not even being discussed.”
While Leila acknowledges that she is on a rent much lower than market value, she says the sudden staggering increase will close her business for good.
“The amount they want to increase my rent by is basically more than I pay myself a year. I’m low profit which is a category that isn’t recognised, I work here all the time and I don’t have ambitions to open up other branches. I’m very rooted in the community – 300% rent rise propels me into a totally different level of business rates,”
she said.
Exigen Property, a third-party corporation, has been tasked with negotiating the rent increase; according to Leila, they are “not willing to engage in any discussion of the social value” of her company. If Leila doesn’t sign this, the lease won’t be renewed because the shop is under an outdated Landlords and Tenants Act lease.
“When people jack up rents they get new tenants in, they pay the higher rate it doesn’t work out and then they’re empty and the minute you’ve got empty shops other shops fail. We’ve got enough takeaway coffee shops, nail bars and tattoo parlours,”
she said.
According to reports, the council’s decision to raise rents is also putting four other businesses in jeopardy, including the 60-year-old Sotos Gents Hair Stylist. Earlier last month, the owner and Leila went to a full council meeting to talk about a petition they started that had more than 2,000 signatures.
Leila is asking the council to take negotiations around the rent increase back in house, so that they can come to a more agreeable amount which recognises the good work her shop does for the community.
A spokesperson for Tower Hamlets Council said:
“The new lease formalises an old and outdated agreement. This is a commercial business and the Council has a duty to secure best value from our property assets with the income from commercial business rents such as this going towards paying for essential services for our residents and support with cost of living pressures.
The existing rent for 15-17 Calvert Avenue is below market levels. The rent proposed for a new lease is based on current market rates and is in line with our other properties in the area, and the new lease also provides greater certainty for the tenant.”
How will the rent increase affect the local community’s access to affordable food?
If Leila’s Shop closes due to the rent hike, local residents—especially those on lower incomes—will lose a key source of affordable, healthy food. Small independent shops like Leila’s are often able to provide competitive prices, personalized service, and flexibility in portion sizes, which larger retailers may not offer.
The closure would undermine efforts to support sustainable, low-waste food systems and reduce access to culturally relevant foods and community gathering spaces.
Residents may have to travel farther or pay higher prices for similar products, exacerbating food insecurity and limiting healthy choices, especially for vulnerable groups such as the elderly and young families.