An asbestos-ridden derelict tower block which is a haven for prostitutes, drug addicts and squatters is killing business, say nearby traders.

Highmead is a ten-storey block of residental properties off Fore Street, Edmonton, with a parade of 11 shops below it.

Until two years ago it provided the butchers, off licences and mini-supermarkets there with a steady stream of customers.

But all that changed in 2006 when asbestos was discovered in the walls and the flats were abandoned.

Now traders say prostitution, drug taking, fly tipping and squatting have taken hold, even though the owner is Enfield Homes, Enfield Council’s own housing body.Ali Al Guner, who runs Guner supermarket, said: “We saw things change when people moved out of the flats, business went down dramatically. Now, people feel like they cannot shop here at all because of what goes on in Highmead.”

The council, the landlord, could not find a buyer when it was put up to auction.

Now it has appointed Spencer and Craig to manage the site. But traders say the council is only interested in raising rents — not in protecting businesses.

Bektas Aksu, of Alpha Wines, said: “We have lost a lot of business. We are living in hope that the place will be rebuilt.

“But it’s been two years, so how long are we going to have to wait?”

This week the council promised tough action to curb the area’s problems.

A spokesman said: “The council is taking these issues extremely seriously and we, along with our partners in the police, will be taking swift action to deal with any antisocial behaviour and environmental problems.

“Regarding Highmead House, the council is looking into how it features into the wider context of the council's place shaping strategy and how we can build a more propserous, stable community in Edmonton.”

l Traders and residents can report problems to Edmonton Safer Neighbourhoods Team on 020 8649 3554 or 07843 065888.