What We Lose When Independent Businesses Can't Afford London Rents

How soaring rents are dismantling the social fabric of our neighbourhoods, one shop closure at a time

The shutters came down on A&C Continental Delicatessen on Atlantic Road in October 2015, ending a quarter-century of service to the Brixton community. José and Anabella Cardoso didn't close their doors because customers stopped coming. They closed because Network Rail demanded they vacate to make way for redevelopment. Their story is just one of many casualties in London's escalating rent crisis.

Across the capital, the spaces that give our neighbourhoods their character are vanishing at an alarming rate. In 2024 alone, more than 13,000 shops closed across the UK, with independent retailers bearing the brunt of the losses. But this isn't just about empty shopfronts or nostalgia for the way things were. When we lose our independent businesses, we lose the social infrastructure that transforms a collection of buildings into a community.

The Brutal Reality of Rising Rents

The numbers paint a stark picture. London's average annual rental costs have risen by £3,000 in just three years. For businesses, the situation is equally dire. When Brixton Wholefoods faced a rent increase from £20,000 to £37,000 per year in 2017, it represented an 85% hike that would cripple most independent retailers.

This pattern repeats across South London. Kaff Bar on Atlantic Road closed in 2015 after its rent tripled. Brixton Hill Studios faced closure in 2023 when landlords Lexadon demanded a 133% rent increase. The Kelly family, who had traded on their Electric Avenue market stall for over 60 years, were forced out when Network Rail doubled their rent.

The pressure isn't limited to Brixton. Across London, commercial landlords unburdened by the regulations that govern residential tenancies can increase rents by any amount, evict without due process, and pass on unexpected bills for maintenance and insurance.

More Than Just Shopping

What the statistics don't capture is how independent businesses function as community anchors. A&C Continental Deli wasn't just a place to buy Portuguese cheese or Spanish chorizo. As José Cardoso explained in his exclusive interview with Brixton Buzz, it was where the community gathered, where local knowledge was exchanged, where newcomers could connect with long-term residents.

These businesses create what urban planners call "third places" - spaces that aren't home or work, but somewhere in between. They're where we bump into neighbours, where community happens organically. When they disappear, we lose these vital spaces for connection.

Take Cornercopia in Brixton Village, forced out in 2021 after eleven years when landlords Hondo imposed huge rent hikes and stripped away tenancy rights. Or the mass evictions along Atlantic Road and Brixton Station Road, where Network Rail told every business in the arches - from Brixton Road to Pope's Road - that they didn't figure in their "new shiny plans".

The Domino Effect

The closure of independent businesses creates a vicious cycle that compounds London's loneliness crisis. As the UK government's strategy for tackling loneliness notes, weak social connections carry the same health risk as smoking or obesity. When the places that facilitate these connections disappear, the health of our communities literally suffers.

Research on hyperlocal networks shows that neighbourhoods with strong local businesses have more social capital. They're safer, healthier, and have positive influences on everything from children's education to mental health. But when independent businesses close, this social capital evaporates.

The transient nature of London's rental population makes this even more critical. With 25 renters now competing for every available property and 45,000 rental properties sold without replacement in less than three years, local businesses often provide the only consistent community touchpoints. They're the places where newcomers can start to feel at home, where long-term residents maintain their connections.

Counting the True Cost

When independent businesses close, neighbourhoods lose:

• Local employment that keeps money circulating in the community

• Cultural knowledge passed down through generations

• Community hubs where residents of all backgrounds can mix

• Unique character that distinguishes one area from another

• Informal support networks that look out for vulnerable residents

The 2015 Reclaim Brixton protests saw thousands take to the streets, with shopkeepers forming a human chain around threatened properties. As Lorne Mash from Mash & Sons fishmongers noted, the temporary closure of shops for the protest was "a sign of what's to come".

The Digital Plaster on a Physical Wound

Some argue that online platforms can fill this gap. But while social media sites might tell you about the latest pop-up in Shoreditch, it won't capture the deep community knowledge that José Cardoso held about his customers' lives, or the way the Kelly family served Brixton "through thick and thin" for four generations.

This is where initiatives like LAGORA become crucial. By creating hyperlocal platforms that preserve and share the deep community knowledge that independent businesses hold, we can at least maintain some of these connections. But digital solutions, however sophisticated, can't fully replace physical spaces where community happens naturally.

Fighting Back

Despite the challenges, communities across London are finding creative ways to support their independent businesses:

The Save Brixton Arches campaign mobilised thousands of supporters, though ultimately couldn't prevent the evictions.

Community ownership models are emerging, where locals band together to buy commercial properties and rent them at sustainable rates.

Local loyalty schemes help keep money circulating within neighbourhoods, making independent businesses more viable.

Pop-up collaborations allow multiple small businesses to share retail space, splitting the crushing rent burden.

But individual action isn't enough. The Centre for Retail Research expects store closures to rise to about 17,350 during 2025, with small retailers facing a perfect storm of rising costs and reduced business rates relief.

What You Can Do

The power to save our independent businesses requires collective action:

1. Shop local, even when it costs more. Every pound spent at your local independent stays in your community.

2. Document and share local stories. Before more businesses disappear, capture their histories and the role they play in your neighbourhood.

3. Join local campaigns. Whether it's fighting unfair rent increases or lobbying for better protections for commercial tenants.

4. Support community initiatives that connect residents with local businesses, whether through platforms like LAGORA or local business associations.

5. Pressure for policy change. Commercial tenants need the same protections that residential tenants have.

The Future We're Choosing

London's rental crisis isn't going away. With rents forecast to rise another 17.6% between 2023 and 2028, the forces squeezing out our independent businesses will only intensify. But that doesn't mean we're powerless.

Every time we choose the local café over the chain, every time we share the story of a threatened business, every time we show up to support campaigns for fair rents, we're fighting for the kind of city we want to live in.

As Elly Foster of Market House on Coldharbour Lane warned after the closure of Fancy Funkin Chicken: "There is no pot of gold at the end of the Brixton rainbow". The illusion that gentrification brings prosperity for all has been shattered by the reality of empty shops and fractured communities.

Our independent businesses aren't quaint relics of a bygone era. They're the living heart of our communities, the places where London's true character resides. When Network Rail told businesses they had to leave because they didn't fit into their "new shiny plans", they weren't just evicting shops - they were dismantling the social fabric of Brixton.

A city without independent businesses isn't just economically poorer - it's socially bankrupt. And that's a price none of us can afford to pay.

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LAGORA is building connections between neighbours and local businesses across South London. To learn more about supporting your local community, visit lagora.co.uk

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