Tower Hamlets Council's Cabinet has approved a 30-year lease renewal for Mudchute Farm and Park, securing the long-term future of the popular city farm. The decision, made during a Cabinet meeting on Tuesday, March 24, 2026, grants the lease to the Mudchute Association, which has managed the 32-acre site for nearly five decades.
The lease renewal comes with an initial annual rent of £15,000 and includes provisions for rent reviews every five years. The rent will be adjusted to the higher of the inflated initial rent or a percentage of non-charitable income.
This agreement departs from the standard terms of the Council's VCS Premises Policy due to the unique scale and designation of the site as metropolitan open land and a site of metropolitan importance for nature conservation. The standard community lease terms include a Community Rent of £14psqft, a lease length of 3-5 years, and are outside of the 1954 Act. The Mudchute Association had rejected this offer as financially unsuitable for securing long-term capital and revenue grant funding, which generally requires a lease of 10 years or more. The proposed 30-year lease is inside the Landlord and Tenant Act 1954.
Mudchute Farm and Park is one of Europe's largest city farms, attracting a quarter of a million visitors annually. It provides a vital green space, educational programmes, and a popular day nursery. The long-term lease is considered essential for the Mudchute Association to secure significant capital and revenue funding for site maintenance and improvements. The association requires this long-term security of tenure to access many funding streams that stipulate at least a 25-year lease term. The council also provides an annual grant of £31,000 towards the running costs through a Service Level Agreement for operating the open space. The Mudchute Association has a sustainable business model and a sound financial track record, and this lease will provide the certainty they have requested to ensure organisational sustainability. The MA also generates income from an adjoining house which is managed on their behalf, and this income subsidises trips and other activities.
Cabinet members highlighted the importance of the farm as a community asset, providing environmental, educational, and recreational benefits to residents of Tower Hamlets and beyond. Environmentally, it is a site of metropolitan importance for nature conservation and has a strong commitment to the development of a biodiverse habitat, being designated as Metropolitan Open Land and a Local Nature Reserve. Educationally, it offers nursery school and education programmes for diverse age groups and needs, with a day nursery for approximately 80 children rated 'Good' by Ofsted. Recreationally, it provides free public access to parkland and farm animals, offering opportunities for recreation and learning in a densely populated urban area. The farm attracts a quarter of a million children and young people annually to see live animals.
The decision aims to support the Council's strategic objectives for public health, environmental sustainability, and community empowerment. The Mudchute Association and the Council are committed to ensuring the continuation of Mudchute as open space for the people of the Borough and visitors for the duration of the lease term. There has been significant community interest in the future of the Farm and Park, with a petition of over 6,500 signatures presented to Full Council in July 2025. Officers have been working constructively with the Mudchute Association to resolve the situation, and a number of Members' Enquiries have also been received.
More information on the council's decisions can be found in the Public reports pack.
