‘It’s just detached from local need’ expert tells City News on housing in Tower Hamlets
New report by the Institute for Fiscal Studies (IFS) shows that more houses were built than anticipated, relative to the national average- but the housing growth does not meet local needs.
A new IFS report found that over a 30-year period, Tower Hamlets in East London ranked highest in exceeding the national average in housing supply, despite small land area.
Tower Hamlets is the youngest and most densely populated borough in England and Wales. It has the fastest growing population across the country, most notably amongst those of working age, approximately a third of residents are between the ages of 25 and 34.
The borough enjoys the third highest economic output in the country, overtaken only by the City of London and Westminster.
But the IFS findings of the prolonged housing supply also allude to another reality. Tower Hamlets is a borough of extremes, home to major financial district Canary Wharf as well as the capital’s highest child poverty rates.
Visiting Fellow at the London School of Economics (LSE) Tim White, tells City News the flats are exclusionary, both in their cost and size.
“[The] disparity is very explicit and is embodied by the housing, [it] is a key driver of gentrification, it’s just detached from local need.”
From the development of Canary Wharf in 1988 to the 2012 London Olympics to more recent infrastructural projects, the borough has long been a target for major regeneration projects, and with that, house building.
Over 80% of Tower Hamlets residents live in flats, the second highest rate across England and Wales with only 12% living in houses compared to almost 80% for the rest of England.
But these flats do not necessarily meet the needs of the population. Tower Hamlets has the 3rd highest number of multi-person households in London, while the majority of these new developments are one or two bedroom flats.
“Developers can make more money from smaller units, it’s also good for the Council, because they also get money, that’s how they fund public services to some degree,” Tim told City News.
Based on a major study LSE carried out looking at high density housing across London, they found many residents complained of structural issues due to the properties being poorly built.
“The demand for real estate in London is so high that they’re not incentivised to produce particularly desirable housing. They [know] they will be able to sell them.”
While in the 70s the majority of high density housing was council housing, but now, it represents just a fraction.
“Where in the new developments they have to include a certain amount of affordable housing or social housing, this is usually put in the worst parts of the development.”
In their Corporate Equalities Plan (2024-2026), the Tower Hamlet’s authority mentions how they aim to boost housing equality, specifically, to “ensure cohesion principles are incorporated in regeneration projects and programmes and facilitate development of positive relationships between people of different backgrounds.”
City News reached out to members of the Housing & Regeneration Scrutiny Sub Committee for a statement, but did not receive any response at the time of publishing.
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Headline‘It’s just detached from local need’ expert tells City News on housing in Tower Hamlets
Short HeadlineTower Hamlets housing contributing to inequality, expert says
StandfirstNew report by the Institute for Fiscal Studies (IFS) shows that more houses were built than anticipated, relative to the national average- but the housing growth does not meet local needs.
A new IFS report found that over a 30-year period, Tower Hamlets in East London ranked highest in exceeding the national average in housing supply, despite small land area.
Tower Hamlets is the youngest and most densely populated borough in England and Wales. It has the fastest growing population across the country, most notably amongst those of working age, approximately a third of residents are between the ages of 25 and 34.
The borough enjoys the third highest economic output in the country, overtaken only by the City of London and Westminster.
But the IFS findings of the prolonged housing supply also allude to another reality. Tower Hamlets is a borough of extremes, home to major financial district Canary Wharf as well as the capital’s highest child poverty rates.
Visiting Fellow at the London School of Economics (LSE) Tim White, tells City News the flats are exclusionary, both in their cost and size.
“[The] disparity is very explicit and is embodied by the housing, [it] is a key driver of gentrification, it’s just detached from local need.”
From the development of Canary Wharf in 1988 to the 2012 London Olympics to more recent infrastructural projects, the borough has long been a target for major regeneration projects, and with that, house building.
Over 80% of Tower Hamlets residents live in flats, the second highest rate across England and Wales with only 12% living in houses compared to almost 80% for the rest of England.
But these flats do not necessarily meet the needs of the population. Tower Hamlets has the 3rd highest number of multi-person households in London, while the majority of these new developments are one or two bedroom flats.
“Developers can make more money from smaller units, it’s also good for the Council, because they also get money, that’s how they fund public services to some degree,” Tim told City News.
Based on a major study LSE carried out looking at high density housing across London, they found many residents complained of structural issues due to the properties being poorly built.
“The demand for real estate in London is so high that they’re not incentivised to produce particularly desirable housing. They [know] they will be able to sell them.”
While in the 70s the majority of high density housing was council housing, but now, it represents just a fraction.
“Where in the new developments they have to include a certain amount of affordable housing or social housing, this is usually put in the worst parts of the development.”
In their Corporate Equalities Plan (2024-2026), the Tower Hamlet’s authority mentions how they aim to boost housing equality, specifically, to “ensure cohesion principles are incorporated in regeneration projects and programmes and facilitate development of positive relationships between people of different backgrounds.”
City News reached out to members of the Housing & Regeneration Scrutiny Sub Committee for a statement, but did not receive any response at the time of publishing.
