A multi-million pound deal to sell off a community pub to a housing developer is being investigated by the councils’ watchdog – as squatters take up residence at the once popular drinking hole.

The Local Government Ombudsman (LGO) – England’s independent complaints body – will interview Merton Council officers later this month over an agreement to sell the freehold of Morden Tavern pub, Central Road, to a developer.

It is investigating whether the council broke its planning rules in agreeing a £2.3m deal with developer Reef Estate – which has closed the pub and wants to redevelop it into housing and shops.

Squatters: "This is our land"

The revelation coincides with the eviction of the pub’s two remaining tenants on Friday, April 1 - one of whom has sought refuge at the YMCA - and the occupation of squatters who claimed the pub for themselves on Thursday, April 7.

Named the Guild of Guardians, the squatters have put up notices at the barriers which claim they are legally occupying the land and Merton Council and other local authorities were acting in a “treasonous manner against the people’s best interests”.

Guild member Feather, said: “We know there were gangs of kids coming round here.

"We’re not squatters, we’re trying to make things better for the community and we pay taxes.”

“This is our land. I’ve paid £700,000 in taxes to the Government so I have earned my right to say what happens to public land, especially when it’s being fleeced to developers.”

"Merton Council must look at this decision again"

The LGO’s investigation comes after Blanchand Road campaigner David Smith, who launched the Campaign for Morden Tavern (CMT), complained the council had “failed in its duties to protect the public purse”.

Mr Smith, who secured support from Mitcham and Morden MP Siobhain McDonagh and hundreds of residents, also believed the council broke its own policy to protect pubs.

He said: “There no community facilities left in this area because over the years everything has been turned into housing.

“What is the point of having more housing when there is no community and social facilities to go with it?“

“The council must look at this decision again.”

Mr Smith alleged only Reef Estates was aware the pub’s freehold was on the market, and therefore bid substantially more than others for the leasehold tender.

Merton Council: Confident of complying with rules

But Chris Lee, Merton’s lead officer on regeneration, said it was not the council’s responsibility to put the pub on the market because it was in the commercial interest of the estate agent [pubs’ specialist AG&G] to get the best deal for the site.

But in a a letter to Ms McDonagh, James Grimes of AG&G confirmed the freehold was never openly marketed.

Mr Grimes said: “AG&G was instructed to market the leasehold interest on behalf of [previous leaseholder] Enterprise Inns.

"We were not instructed to market the freehold on behalf of Merton Council.”

According to its Unitary Development Plan, the council also has a duty to “protect public houses” except where: it is proven to be no longer economically viable; has been put on the open market to interested operators; and there are alternative pubs in the locality.

Chris Lee, Merton Council’s director of environment and regeneration, said: "We are confident that in our proposals for the Morden Tavern site, we have complied with council policy, procedure and government legislation."

Reef Estates said it was unable to comment, but on April 12 issued a County Court summons to the protestors, who must attend a hearing on April 26.

Do you think the Morden Tavern should be kept as a pub or developed into something else? Leave a comment below, call 020 8722 6335 or email: ooakes@london.newsquest.co.uk.

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