Shopkeepers in Southwark appeal to council after rents are hiked more than 100%

Businesses on a street in South London say they're worried for the future as the council raises rent by more than 100 per cent.

The shops on Crossthwaite Avenue in the London Borough of Southwark, include a supermarket, hairdresses, pharmacy, laundrette and post office.

Customers have described the parade as a "a local community hub".

Nasrin Jahanshiri opened Crystal Launderette in 2012 with her late husband.

"It's hard work but the community are very nice and very customers, understanding - I feel like I am part of the family," she said.

"They invite me to their homes, we spend time together, being in this environment makes it easier for me to work seven days a week...it's not just a job, the community is like my family, they look after me."

Ms Jahanshiri's businesses is one of five that has been given the increase - something that she says she "cannot cover".

She continued: "It was a great shock, I couldn't stand up. How could I afford that first of all, and then how can I pass these increases to my customers to cover that increase?"

Currently, a small wash in the launderette would cost £5 but following the increase, she would have to nearly triple the price.

"I still cannot cover all the costs. My business isn't failing, but this increase will consume a big portion of my small profit. it means I'd be working for nothing," she adds.

Ms Jahanshiri's husband died six years ago, and she has spent that time paying off loans and continuing to build the business.

The pandemic also put a lot of pressure on small businesses like hers, and this news has caused further "anxiety, stress and frustration".

"This business was really an achievement for my husband, and all my memories are here. I feel like I [will] lose him again," she said.

Anjih Supermarket is another family business concerned about the increases.

It has been in the area for 15 years and even opens on Christmas Day.

Anijan Nirmal's family own the shop. He said: "If you increase the rent, that cost has to be paid by us, all that increase has to go somewhere it will go into the price of the goods.

"The stuff we sell that is price locked, we can't do that anymore so we're going to have to sell it for higher.

"If that happens people will stop coming to us, and travel further where they sell cheaper and we will see a decrease in customers, and therefore our income and we will not survive - it's not sustainable.

"This is our business, we have nothing else for our livelihood."

Michelle Simpson has owned a hairdressers in the area for 12 years and says the area was a reason for opening her business.

"One of the major things of having a business in this area is to serve the local community, and one of the things I looked at was all the surrounding flats and houses," she explains.

"I've had a rent increase, it was more than what I could afford initially but we were able to negotiate a price but I certainly can't afford the new price.

"I was flabbergasted, and the thing about it was there wasn't an option, they were saying it is renewable however there's no option - yes or no you need to agree. It was criminal.

"Everyone will be happy we have a sustainable, affordable rent that's what we need to stay here. Otherwise most certainly wont be able to maintain that sort of increase."

A petition has been started by resident, Jenifer Milner, and is calling on Southwark Council to "re-think their extortionate rent increases".

"We all use these shops because they're within walking distance and they're essential services and they've been here a very long time," said Ms Milner.

"It's good to come here because they know us and they're very quick, if the customer doesn't turn up - Bim [from the Post Office] will send out and check if the customer is okay. It's a real neighborhood community hub that we really value."

In response, Cllr John Batteson, cabinet member for climate emergency, jobs, and business, said: "We very much champion smaller local businesses. These issues stem directly from the pandemic years when we paused rent reviews and lease renewals as part of our business support efforts. Those delays in renewals have left the leases far out of step with the current market rates for the properties in question.   “We have been working with the business owners on Crossthwaite Avenue to find a solution to the issues surrounding lease renewals and have used this opportunity to engage with all businesses on the parade rather than just the couple who were immediately due for renewals.   “We know how much of an anchor these businesses are to the local community and we are committed to finding a resolution so they remain serving local people. I’m confident we’ll be able to do so in the coming weeks.”

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...