London rent protesters say Peabody 'would turn in his grave'

Key workers living in London have said social housing pioneer George Peabody "would be turning in his grave" over plans to raise their rents.

The Peabody housing association rents homes to key workers at a discounted rate.

Tenants, who could see their rents rise by up to 9%, demonstrated near the Bank of England on Saturday.

A spokesperson for Peabody said its properties remain "decent value for money".

Campaigners mounted their demonstration by the statue of George Peabody, between Cornhill and Threadneedle Street.

They held placards containing the words "George Peabody would be turning in his grave".

Mr Peabody, an American banker, set up his eponymous trust in 1862 and built social housing estates around London.

Mary Pimm, chair of the Victoria Park Community Association who is facing a 9% hike, said: "We're calling for a rent freeze, but we would be prepared to negotiate.

"We certainly wouldn't accept anything that's more than the current rate of inflation, which is 3.4% now."

Tenant Kevin Biderman said: "Everything is going up. Gas, electric, and with rent too, that's just going to have a devastating effect on our finances.

"You always try and make do but we've been scrimping and saving and trying to get by, and yet we're constantly in our overdrafts so this just isn't sustainable."

A spokesperson for Peabody said: "We appreciate that no rent increase is ever welcome. For more than half of residents living on the former crown estates, rents will stay the same or increase by an average of 5.4%.  

"Like all housing associations, we're having to balance rising costs with a need to continue maintaining existing homes, build more desperately needed homes where we can and provide essential services.  

"Although these homes aren't for social rent, they are decent value for money in these central London locations, at an average of £1,233 per month for a three-bed home.

"People are paying significantly more for similarly sized homes in the same areas on the open housing market.

"No resident on a former crown estate will pay any more than our self-imposed cap of more than £1,400 per month."

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