Camberwell shopkeepers fear “exorbitant” rent hikes of up to 143 per cent could force them to close.
A Post Office and laundrette are among four shops along Crossthwaite Avenue that have served the community for a combined 100-years-plus.
But the business owners say they “can’t survive” if Southwark Council sticks to the sudden rent hike.
A Southwark Council spokesperson said pausing rent reviews during the pandemic had artificially lowered rates, adding that negotiations with the shops were ongoing.
Nasrin Jahanshiri established Crystal Laundrette in 2012 with her late husband, transforming it from a vacant “dungeon” to a popular local business.
She said: “I’ve spent so much money on this business. If I leave, I’m going to lose everything including my home.”
Yet Southwark Council has demanded she pays £14,000 per annum, up from £5,750 currently, Nasrin said.
The council recently dropped the offer to £12,000 but Nasrin says it is still more than she can afford.
Anijh Supermarket, a convenience store for roughly fifteen years, claims to have been hit with a 120 per cent rent increase.
The shopkeeper, who asked not to be named, said: “We’re quite scared to be honest because it’s our livelihood on the line.
“It’s just way to way too much and it came out of nowhere.”
A pharmacist and postmaster, based next door, haven’t received the council’s rent offer yet – but they are braced for the worst.
Postmaster Bimal, whose Post Office has served customers since 1981, said a similar rent increase would be “unsustainable” for his business.
A pharmacy two doors down, now called Davis Chemist, has sold and delivered medication to locals for over 35 years.
Pharmacist Andrei Ciobanu said: “We’re not due for a rent increase yet… but head office said we could not cope with that amount.”
The businesses say they are already navigating a tricky economic client, with the laundrette’s energy costs quadrupling in recent years.
The Post Office told Southwark News revenue had halved since the pandemic.
The row of shops sits between several council estates – Bessemer, Denmark Hill, Champion Hill, Cleve Hall and Sunray.
Local residents, already saddled with the cost-of-living crisis, say they would be gutted to lose the “affordable, essential services”.
Jenifer Milner, who lives nearby, said: “It’s totally unjustified and disproportionate. It’s not as if these are high-street shops.
“They are providing essential services to the neighbourhood and that’s why during Covid they could all stay open! They’ve basically been given eviction notices in disguise!”
Her petition against the rent hikes has received over 500 signatures in just five days.
Ruth Cross, a laundrette customer, said the rent hike was “nonsense”. “These people need to survive,” she added.
A Freedom of Information request submitted by this paper found the average rent for a Southwark lock-up shop was £14,282pa in 2023.
But residents have urged Southwark Council to consider the businesses as vital community services.
They claim a comparable unit on the Kingswood Estate, in Dulwich, recently received an offer of just £5,000pa.
Shop owners have approached Southwark councillors, urging them to meet with shopkeepers and come to a compromise.
“Despite our repeated requests for meetings, no meaningful response has been received and no progress in negotiation has been made over the past six months,” they said.
Cllr Rachel Bentley, Deputy Leader of the Southwark Liberal Democrat opposition, said: “Small businesses are at the heart of our communities, and have been struggling since the pandemic. Southwark Council should be making every effort to support them, and so to see a proposed 143 per cent rent increase is outrageous and wholly unacceptable.
“The council should withdraw that proposal immediately, and work with businesses to agree a realistic, affordable rent that will ensure their continued success.”
Cllr Martin Seaton, Cabinet Member for Jobs, Skills & Business, said: “Running any business in the current climate comes with a whole host of challenges, which is why we paused rent reviews and lease renewals during the pandemic, particularly with supporting smaller local businesses in mind.
“This has meant businesses have benefitted from artificially reduced rents. We understand that any rent increase will be an adjustment and negotiations are ongoing, including consideration of transitional arrangements.
“We very much hope to work with each business to find an agreement so these shops remain serving the local community.”