Independent businesses in east London claim they are being priced out because Network Rail is trying to cash in on the area’s “hipster” reputation.
Tenants of the Ponsford Street railway arches in Homerton have accused the rail company of hiking rents by tens of thousands of pounds, forcing them to move out.
The firm spent £4 million renovating 12 arches in 2013. Tamara Dial rented one of them, building up her dog daycare business Reservoir Dogs.
She moved out in September. “I originally chose it because it was affordable,” she said. “Now they’re chasing us out.”
Ms Dial says Network Rail allowed her to extend her £7,500-a-year lease for only three months, before raising the rent to more than £20,000.
She added: “There needs to be some kind of rent control. If the world didn’t have small businesses, where would we be?”
Nick Vadasz, who runs Vadasz Deli in the arches, said: “The whole point of ‘Hackney cool’ is that you have coffee shops and other small independent businesses.
"But if they’re priced out, you’re going to be left with Costa.”
A Network Rail spokesperson said: “These tenants were offered an extension of their contracts at the same rent while we undertook an open market letting. The refurbished units will be offered at market rents to local independent businesses.”
