Protesters have stepped up a campaign against £2.1m council plans to sell a popular community pub – which they said had been rushed through, leaving tenants facing eviction and the site prone to fly-tipping.

Mitcham and Morden MP Siobhain McDonagh will join a demonstration at 1pm on Sunday in support of five residents of the Morden Tavern, who said they had been told to leave their homes by the end of the year.

The council-owned site is leased by developer Reef Estates, which has made a deal with the council to buy the site for a rumoured £2.1m if it can get planning permission to build flats there.

Residents, including 60-year-old bin collector Jock Muir, who has lived in the Central Road pub for nine years, are being forced to look for alternative accommodation and said their home had become a dumping ground.

Mr Muir said: “I’m absolutely devastated. For the past month nobody has been collecting our rubbish. We’re not even sure who we’re supposed to pay our rent to.”

It has also emerged the Audit Commission is investigating complaints about the property deal.

A document obtained under a Freedom of Information request indicated the decision had been taken on July 1 in consultation with the three St Helier ward councillors, Dennis Pearce, Maxi Martin and Stan Anderson.

But Coun Pearce denied a consultation with councillors ever took place – putting them at loggerheads with lead planning member Councillor Andrew Judge, their Labour colleague who helped sign the deal.

Coun Pearce said: “I do not remember being consulted with Coun Judge or anyone else.

“Coun Judge is pursuing the sale of this site. We have a duty to look after the residents’ best interests. We must be prepared to give them some sort of accommodation.”

Coun Judge defended the council’s decision to sell the freehold and said it appointed professionals to ensure the sale had achieved the best possible market price.

He said: “Whatever the romantic instincts of some protesters, the council can’t afford to prop up what would appear to be an uneconomic pub. We had a meeting with the protesters and the local councillors several weeks ago where we discussed these issues.”