Join us as we delve into how an American millionaire with a keen sense of social responsibility, George Peabody, transformed Social Housing in London. Learn more about how his vision and legacy of Philanthropy in housing continues to shape the city today.
History of Peabody Estate
A Peabody estate was opened in Herbrand Street, Bloomsbury in 1885. Originally known as the Little Coram Street Estate. It consisted of four blocks of houses in yellow brick with sash windows. Each block was built around a courtyard providing 205 homes altogether.
The estate was one of a number built for the poor through the Peabody Trust, the brainchild of George Peabody, an American born millionaire philanthropist. This estate along with many others are still standing today, providing housing for residents across London.
The Estate was built on belonging to the nearby Foundling Hospital that cared for abandoned children. The hospital had sold land to developers at the beginning of the nineteenth century and several streets of houses had been built with ground floors several feet below pavement. In 1876 the Medical Officer of Health was concerned about their unhealthy condition. The houses were demolished and the land bought for the Estate.
George Peabody’s Philanthropy
And who was George Peabody himself? Well this was a rags to riches story. Born in 1795 in Massachusetts into a large family, George left school at the age of 11 and through sheer hard work and a head for finance he became a successful dry goods merchant.
He went on many business trips to London across the Atlantic and established a successful merchant banking house for foreign exchange. Eventually he came to live in London permanently. He never married and spent his money on charitable works in both the USA and England. Education was particularly important to him.
Peabody was very concerned that his money would do good for the poor – the people that he had come from himself. He was a man with a big social conscience and a great deal of money, Peabody didn’t spend on himself.
He didn’t have dinner out and didn’t own a carriage. One story tells of his being found by a colleague outside waiting in the rain for a bus and explained. ‘There’s only been a two-penny bus that has come along as yet. I’m waiting for the penny one.’
Social Housing and Reform
During the 19th century there were many wealthy people who believed that one way to help the poor was to provide decent homes. At the time there was, as there is today, a lack of affordable housing and places to rent in London.
Influenced by Charles Dickens and Lord Shaftesbury’s ideas, Peabody set up a trust to develop model housing for the poor to which he donated over half a million pounds. Each estate had to make 3% profit to cover maintenance and other expenses. There were baths and a laundry provided as well as toilets for residents.
Living Conditions and Criteria
Many tenants enjoyed their new homes and tenants worked within walking distance of their homes. Records show that residents worked in the department stores on Tottenham Court Road, the British Museum, Crosse and Blackwell in Soho Square and the Meux Brewery among other businesses.
Not everyone could get a place on the Estate however. To qualify to rent a home at a Peabody Estate you had to be a Londoner, be poor but have a moral character and be a good member of society. No one was excluded on the grounds of religion or politics but if you failed to pay your rent you were evicted.
A Tribute to a Philanthropic Visionary in the City
Just outside the Royal Exchange, stands a statue of George Peabody sculpted by William Wetmore Story and was unveiled in 1869 honouring Peabody’s incredible contributions to philanthropy and his lasting impact on the city.
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The bronze statue captures Peabody seated, exuding a sense of quiet dignity and wisdom. It serves as a quiet yet profound reminder of a man who dedicated his fortune to improving the lives of others, ensuring that generations of Londoners would have access to decent housing.
Memorial and Legacy
Although Peabody died in London in 1869, his remains were initially placed in Westminster Abbey before being returned to the United States for burial in his hometown of Peabody, Massachusetts. This temporary resting place in one of Britain’s most prestigious landmarks underscores the high regard in which he was held.
His memorial plaque, located in the Abbey’s north cloister, ensures his legacy is never forgotten. Visitors can see this tribute and reflect on the impact one man’s generosity had on the lives of thousands.
Impact on Society
In the minds of philanthropists like Peabody, providing decent homes for the working class would alleviate the problem of poverty. People could be proud of where they lived, not get ill and be able to earn their living.
But of course, the very poorest who had lived in the houses that had been demolished could not afford these rents and were displaced to even poorer overcrowded accommodation.
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