Rent rises driving curry houses out of Brick Lane

Fifteen have already closed in the east London street famed for its curry houses. Rents have doubled in four years and business rates have soared by up to 70 per cent.

Other restaurant owners are now warning they could leave the neighbourhood, which was the setting for Monica Ali's bestselling novel, Brick Lane.

Those considering moving include Cafe Naz, one of the most famous venues in the street. Some venues fear they have to cut staff in order to stay open.

Bajloor Rashid, president of the Bangladesh Caterers' Association, said: "In the past four years, rent has more than doubled and rates have increased by 50 to 70 per cent, which has forced many residents to migrate out of the area and restaurants to shut shop."

He added that an influx of corporate brands was making the area "soulless".

Mr Rashid, who spoke at his association's annual dinner in Park Lane yesterday, said: "I work in Brick Lane five days a week and I see how it is changing.

"What we have at the moment is lots of restaurants changing hands as new owners take them over to try and keep them going.

"But what will happen very soon is people will give up and the restaurants will close down and be replaced by ordinary high street stores or just be left empty.

"Having a meal in Brick Lane is not very expensive but even if menu prices are put up it would not cover the rise in rates and rents."

He said the arrival of increasingly affluent residents was changing the neighbourhood: "This masks the problems being faced by restaurant owners and traditional residents resulting from increasing property prices and rates."

Other restaurant owners said they were worried about the future. Hussein Ali, from Papadom's, said: "My rent has gone up and business is very bad this year. The way it is going there will be a lot of restaurants closing down.

"We don't know what will happen 100 per cent with us, but we will have to do something.

"We have been here just over a year and we thought Brick Lane would be busier. We do get customers but because there is so much competition the prices are very low. Business rates have gone up drastically and I know next year they will go up again."

A spokesman for Aladin restaurant said: "This year has been very poor. Everything is expensive but we can't put the price of the menu up. We may have to lose staff. Some people think Brick Lane is like a gold mine but [then] they realise it is better to leave."

Abdul Rob, general secretary of the Brick Lane Business Association, said: "Businesses are changing hands. There are people outside who are desperate to do business in Brick Lane, but people who have been here two or three years want to sell. It's a game that's going on. Restaurants will not die out in the next 15 years because there will always be someone moving in.

"If someone says they want to do business in Brick Lane they have to tout for people and give customers discounts. I would say: don't open a restaurant because it is not doing well."

Tower Hamlets council would not comment on the rise in business rates.