The freedom with which drug dealers have been trading in one of the busiest areas of east London has inspired a local community to mount a satirical fightback by installing street signs designating “crack pickup” points and telling drivers to “give way to oncoming drug dealers”.

The signs went up on Sunday morning close to the nightlife hub of Shoreditch, where people living in the area have complained that they can witness 10 drug deals a day on street corners. Dealers speed through narrow streets in cars and on motorcycles and mount the pavements, locals have said.

On one street, residents painted a parking bay marked “Drug dealers only” and on another they erected a “No cars” sign which said the same thing.

“In the last two to three years it has become a huge problem,” said Penny Creed, vice-chair of the Columbia Road Tenants’ and Residents’ Association, which commissioned the signs. “Drug programmes have been cut, mental health programmes have been cut, and it’s a perfect storm.”

A satirical sign installed by fed up locals in Shoreditch. Photograph: Ray Tang/REX/Shutterstock

Close-up of the lamppost. Photograph: Ray Tang/Rex/Shutterstock

The signs were removed by the London borough of Tower Hamlets within 24 hours, which Creed said was swift given that an alleged dealer’s car smashed into a bollard some weeks back and it was yet to be fixed.

The frustrated residents believe the success of Shoreditch’s nightlife has brought in beggars and homeless people to “work the streets” which teem with revellers during much of the week. Drug dealers have moved in to service that market, they claimed.

“One corner of our street is used as a drug collection point 24 hours a day,” said Jonathan Moberly, a resident of Chambord Street. “Heroin and crack addicts gather in small groups waiting for deliveries, which arrive by speeding car. It is barely possible to avoid walking around or through these gatherings when leaving or returning home.

“Six months ago my stepson Jake was victim of a hit-and-run by one of the dealers. His ankle was badly smashed and he is still unable to return to work. The authorities seem to be powerless or uninterested to act.”

One resident of the area said she was recently burgled and now barely sleeps in her home. “I feel scared, vulnerable and anxious,” she said. “I feel abandoned by the authorities.”

John Biggs, the Labour mayor of Tower Hamlets, said he understood residents’ frustration. “This is a major problem in many places, not just Tower Hamlets, but the Shoreditch area is a hotspot,” he said. “This is mainly a criminal matter and we need to see more police officers on the streets.

“Police are not a council responsibility and government cuts have had a big effect – in Tower Hamlets we have lost over 200 officers, and this has a real impact on the ground. Too often criminal activity including drug dealing is not being stopped, and like residents I think this is unacceptable.”

• This article was amended on 18 September 2018 to remove some personal information.