Tower Hamlets Council's Cabinet has approved the addition of the Boundary Estate Community Launderette to the Community Premises Portfolio, ensuring the continued operation of the vital local facility.

The decision, made at a Cabinet meeting on Tuesday, March 24, 2026, allows the not-for-profit launderette, which has been serving residents since the early 1990s, to apply for community rent and potential rent reductions. This designation is temporary and personal to the current operator, Boundary Estate Launderette CIC, and will end if they cease to provide not-for-profit services or vacate the property.

Aerial view of a modern urban development with high-rise buildings and a railway line.
Aerial view of a modern urban development with high-rise buildings and a railway line.

To qualify for community rent and potential rent reductions, the Boundary Estate Community Launderette CIC must meet several criteria. It must be a not-for-profit organisation operating as a not-for-profit laundrette service and continue to do so for local people. The premises must also be added to the Community Premises Portfolio (CPP). While the property is part of the HRA retail portfolio and not currently meeting all CPP criteria, it is proposed for temporary addition to allow application for community rent and potential Community Benefit Rent Reduction (CBRR). The organisation is also working with a researcher from University College London to establish an evidence base of its impact, and its Directors are amending their legal entity to meet council requirements, with the new entity expected to be Boundary Estate Launderette CIC. Officers are providing support with governance issues and ensuring other eligibility requirements for CBRR can be met.

The community rent rate is estimated at £14 per square foot. The mechanism for determining rent reduction allows for an application for Community Benefit Rent Reduction (CBRR) of up to 80%. This could result in a net rent of approximately £1,266 per annum, a significant reduction from the current legacy rent of £2,000 per year and substantially below the estimated market rent of £22,000 per annum.

The launderette, located at 28 Calvert Avenue, provides affordable laundry services at approximately 20% below commercial rates to residents on and around the Boundary Estate. Its previous long-term lease at a legacy rent of £2,000 per year expired in January 2024, and the property was subject to commercial leasing agreements, which would have priced the community gem out of operation.

A temporary tenancy at will was granted to allow the launderette to reopen while long-term options were considered. The addition to the Community Premises Portfolio will enable the launderette to operate with greater financial stability, preventing the loss of a valued community service.

Councillor Saeed Ahmed, Cabinet Member for Resources and the Cost of Living, highlighted the importance of the facility, noting that without it, the cost of repairs for damp and mould in residents' homes would be significantly higher for the council. He stated, By having this laundry in the Boundary Estate, it's saving this council millions and millions of pounds. He elaborated that without the launderette, if you can imagine thousands of people drying their clothes at home, washing their clothes at home, would create the level of water penetration and condensation. That will put a huge bill on this council.

Mayor Lutfur Rahman also acknowledged the pressure from volunteers and the community to keep the laundry open and affordable. He referred to 'policies set out by the previous administration' that had tied their hands regarding peppercorn rents, stating, Free, doing a peppercorn rent doesn't exist anymore. That was done away with under previous labour administration. He added, Our hands were tied by policies set out by the previous administration. However, the pressure he put us under, being your advocate for that laundry, to come up with policies that support local community initiatives.

The decision aligns with the Council's VCS Premises Policy and Voluntary and Community Sector Strategy, aiming to support community infrastructure and reduce damp and mould in homes. The full details of the proposal can be found in the report Boundary Estate Community Launderette - addition to Community Premises Portfolio Boundary Estate Community Launderette - addition to Community Premises Portfolio.

A vibrant mural depicting diverse individuals engaged in various activities, symbolizing community and progress.
A vibrant mural depicting diverse individuals engaged in various activities, symbolizing community and progress.