The 2012 Olympics promised to regenerate East London. What went wrong?

On 6 July 2005, London won the bid to host the 2012 Olympic and Paralympic Games. Alongside sporting glory, the Olympics were seen as a catalyst for the regeneration of East London, creating lasting impact for deprived communities by transforming a de-industrialised area. But this has not happened.

Over time it became clear that the main beneficiaries of regeneration were not local people, but professional groups able to access market housing and compete for the highly skilled job sectors now located in the area.

When London won the bid, I was optimistic this would bring meaningful change for East London. However, as the gap between promises and outcomes became clear I joined forces with TELCO (The East London Citizens Organisation) to fight for a better deal.

What the Olympics bid promised

It is worth reminding ourselves of some of the legacy promises. London’s Candidate File pledged to: “Regenerate the area for the entire benefit of everyone that lives there – serving as a model of social inclusion.”

In a presentation to the International Olympic Committee in 2005, then-mayor of London Ken Livingstone claimed we could look forward to: “A new era for East London, with 21st-century transport links, thousands of new jobs and a significant increase in affordable housing.”  

TELCO, representing more than 90 East London community groups, were initially ambivalent about supporting the games due to negative experiences of other regeneration projects. They eventually pledged support for London’s bid in exchange for tangible benefits enshrined in an Ethical Olympic Charter, signed by Livingstone, Sebastian Coe, and London Assembly member John Biggs.

The charter pledged a range of commitments, including paying the London Living Wage and building 100 community land trust (CLT) homes on the Olympic Park. Additionally, the Greater London Authority sent TELCO a letter confirming that 50% of housing would be affordable. These commitments were not legally binding.  

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Housing legacy

The commitment to deliver substantial affordable housing was crucial given the high levels of housing need in the area at the time. Sadly, 20 years later that need is just as great. Across the four legacy boroughs more than 80,000 households are on council housing waiting lists.

The housing crisis is most acutely felt in two of these boroughs. Newham has the second highest number of households on waiting lists and the highest number living in unsanitary housing in England. Neighbouring borough Tower Hamlets has the fourth highest number of households on waiting lists.

One of the first consequences of London’s successful Olympics bid was the displacement and demolition of two Traveller sites housing 35 families, as well as the Clays Lane Estate, then the second-largest housing cooperative in Europe, providing 450 low-cost tenancies for single homeless people. A further 327 social rented units mainly located in Newham were used to rehouse these residents, resulting in a total loss of 777 affordable tenancies.

Data on housing completions shows 13,259 houses have been built in the Queen Elizabeth Olympic Park and surrounding areas since the Olympics – just 27% of these were affordable housing. This falls short of several key targets: the 50% promised in 2005, the 35% stipulated in the London Legacy Development Corporation (LLDC) plans, and the Greater London Authority’s (GLA) 50% indicative requirement for public land.

Equally concerning is the type of so-called ‘affordable’ housing built. Just 50% is for social or affordable rent – again, this is below the 60% required in a range of policy documents, including the LLDC’s own local plan.

Overall, when factoring in the 777 tenancies lost through the Clays Lane demolition, the net gain in affordable/social rented units by August 2024 was just 965 units. There is not one CLT home planned or in the pipeline on the park, despite repeated pledges. The housing legacy of the Olympics is marked by displacement, exclusion, gentrification and broken promises.

Employment legacy

Since 2005, unemployment levels have improved but continue to be below the London average. Today, poverty levels remain high – Newham and Tower Hamlets have the highest and second- highest levels of child poverty after housing costs in England. 

London’s Candidate File claimed: “The biggest economic legacy from the Games will be the creation of wider employment opportunities and improvements in the education, skills and knowledge of the local labour force in an area of very high unemployment.” 

Over time, predicted levels of employment on the park have increased, following the development of the
Cultural and Education Quarter on Stratford’s waterfront. One of the first outcomes of London’s successful bid was the direct displacement of 284 small and medium-sized enterprises employing 5,000 people in mainly unskilled and semi-skilled jobs. By August 2024 there were 12,157 jobs on the park, excluding short-term construction jobs. 

These jobs fall into two main categories: unskilled and semi-skilled jobs linked to park maintenance, sporting venues and catering, which account for around 5% of jobs; and highly competitive professional jobs located in the cluster of elite institutions that dominate the park. 

Today, the Olympic Park is an isolated enclave of affluence, disconnected from surrounding areas and a stark testament to the need for a new approach. 

An alternative vision 

A new proposal for a community-led housing and employment inclusion zone emerged from workshops held at two conferences that brought together academics, policymakers, practitioners and community organisations from East London.

The consensus was that current regeneration efforts had failed to deliver the promised inclusive legacy after the Olympics. With plans for the park nearing completion, there was a growing sense of urgency for an alternative approach.

Since then, TELCO has developed a vision for the zone in collaboration with members and other organisations. It has been agreed that the zone will be co-created using community-led planning and community wealth building (CWB) principles.  

A key aim for the zone is to establish a physical presence and serve as a strong anchor for locals, offering hope to the growing number of households left behind and ensuring a more equitable stake in the area’s regeneration.

It would be a national demonstration project for the application of community wealth-building principles and equitable regeneration, pioneering and piloting innovative and joined-up solutions in housing and employment. 

It would be guided by core values and priorities, co-created with local communities and aligned with the original Olympics legacy pledge: to regenerate the area for the benefit of everyone that lives there, acting as a model of social inclusion.  

Detailed plans for the housing element of the zone are still being developed, but our ambition is for 100% of homes to be genuinely affordable for low- and median-income households. The housing would be community-led and developed as CLT and cooperative housing. This would fulfil the promise of delivering 100 CLT homes and replace the cooperative housing that was demolished. 

In terms of job creation, we see potential to develop cooperatively run services for people living, working and visiting the area, ensuring people have a more equitable stake in regeneration. We want to capitalise on the knowledge concentrated in the cluster of anchor institutions on the park, including pioneering AI and robotics. We could establish a social care co-operative that applies this technology to improve wages, working conditions and care quality.     

A key barrier to developing the zone is securing an affordable and appropriate site on or near the park. Rokhsana Fiaz, mayor of Newham and member of the LLDC Board, has expressed support for the proposal.

She identified a site between the old and new Stratford shopping centres in Newham, which has been earmarked as a potential housing and employment inclusion zone.  

To move forward, the land would need to be donated or offered at a significantly reduced cost. 

We are now seeking to work with policymakers and potential funders to develop it as a community-led initiative.

The zone presents a unique opportunity to demonstrate a new model of ‘good growth’ – one that delivers tangible benefits for residents of the legacy boroughs and acts as the glue to connect the wealth on the park with legacy borough residents.

This would align with the LLDC’s inclusive economies strategy and help, finally, fulfil the legacy pledge to: “regenerate the area for the entire benefit of everyone that lives there. Serving as a model for social inclusion”.

Penny Bernstock is co-chair of The East London Citizens Organisation’s (TELCO) Olympic Strategy Group and visiting professor at University of East London’s Housing Knowledge Exchange Unit.

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