A man who was stabbed to death in a London suburb while confronting two muggers who were running away after snatching a woman's handbag has been described as a hero by police.

Sukhwinder Singh, 31, who has one child, chased the thieves after witnessing the attack on a 28-year-old woman near Barking station in east London. After pursuing the two men along several residential streets, Singh caught up with the pair and a fight broke out, during which he was fatally wounded.

Singh, a builder, was taken to the Royal London hospital, where he later died. Police said the dead man was a hero who had lost his life bravely trying to prevent more crime being committed in his community.

The woman was walking home at about 6.40pm yesterday when the attackers struck from behind and stole her bag. Singh, an Indian national who has lived in London for 10 years and is believed to have been staying with cousins in Barking, intervened despite not knowing the victim.

Tributes were paid to a "brave" and "special" man who would help anybody. Nirmal Singh Gill, who represents the Longbridge ward on Barking and Dagenham council, said he knew Singh by his nickname, "Bittu".

"He was a very nice young man. He used to go the Gurdwara every evening and was always helping. He was a smart guy who didn't drink at all and was a very clean-living person. He would help anybody so it doesn't surprise me that he was trying to help a lady.

"He didn't deserve this – nobody deserves it – but he was a special young man. He was very well known in the Sikh community and everyone is very shocked. It's a very big loss to everyone, both here and in India."

Detective Inspector John Sandlin said: "This is a tragic death of a man who was killed for attempting to stop others committing crime, and our thoughts are with Sukhwinder's family. However, I would also to reassure the wider community that tragic events such as these are very rare.

"What Mr Singh did was obviously very brave but I would not encourage that members of the public do that. What I would encourage the public to do is contact us immediately."

Mohammad Jubran, 22, who lives on the road where the attack happened, said: "I was just coming back from the gym and, when I got home, my mum said she heard someone screaming, calling out: 'Don't let them run'.

"It's terrible. I've been living here for 16 years and it's the first time I have heard someone has been murdered. It makes you more scared about going outside at night. It was a brave thing he did."

A 36-year-old resident, who asked not to be named, said the roads near the station were well lit at night, but added: "There are quite a lot of robberies because it's quite secluded and there is a bridge by the station so people can run to the other side quickly. But I have never heard of anything like this. It's a shock – I hope they catch whoever did it."

The attack comes weeks after Home Office figures indicated that 375,000 people were mugged in England and Wales last year – the equivalent of one every 90 seconds.

Tonight, officers appealed for witnesses as police searched the area for the murder weapon or the handbag, which may have been thrown away by the muggers. Drivers passing through the area were stopped and interviewed as detectives attempted to discover in which direction the muggers fled. They are described as black men aged in their 20s or 30s and 5ft 7in to 6ft tall.

Sandlin added: "My officers are also keen to hear from anybody who witnessed the initial robbery, the actual altercation that led to the stabbing. I am appealing for anyone that knows who committed this crime, or who has any information about those who committed this crime, to do the right thing and come forward.

"It is also possible that the suspects may have abandoned the bag stolen, and I appeal to anyone who may find a brown leather shoulder bag to contact police."

A postmortem examination was due to take place at Queen's hospital, Romford, yesterday afternoon. Police have declined to say which part of the body Singh was stabbed in or how many wounds he received.

The charity Witness Confident reported recently that nine out of 10 muggers escaped justice last year, and warned that the public were so disillusioned with the police and criminal justice system that only 153,750 of the crimes estimated to have taken place – about 40% – were reported.

East London remains a "hotspot" for knife crime, with weapon carrying a problem, particularly among gang members. Days before Christmas an 18-year-old was found lying in a Bow street after being attacked with a knife. Salum Kombo died after suffering multiple stab wounds in an attack just yards from his home.

The government recently called for tougher sentences for knife crime, while last week a court heard how a man carried out a casual knife-point mugging in the hope he would be deported back to his war-torn African homeland because he hated life in Britain.