Pimlico residents hit out over rents

The sale was at the centre of war between the landlords and the tenants, who feared their rents would increase dramatically despite promises this would not happen.

Now tenants claim they have been betrayed, as many are facing rent rises of up to nine per cent a year, until their bills reach 60 per cent of the market rent.

One Millbank Estate resident, who asked not to be named, said: "This obviously leaves me in despair."

Peabody said the approach is in line with the previous rent policy of the Crown Estate and in keeping with the promises made by Peabody during the sale.

Dr Ben Bowling, chairman of the Millbank Estate residents' association, said: "The tenants are getting mixed message from Peabody.

"On one hand, they say they are absolutely committed to affordable housing, but then plan sky-high rent rises that will price people on fixed incomes off the estate, which puts our wonderful mixed community at risk.

"All the tenants want is genuinely affordable housing."

Peabody said rents paid by Millbank Estate residents were, on average, well below rents paid by other social housing tenants in London.

The housing organisation added that it had been clear about its policy throughout the purchase process and in its communication with residents.

A spokesman for Peabody said: "Rents for the 176 former assured and assured short hold tenants at Millbank will never be more than 60 per cent of the market rent.

"This is generally in line with rents in social housing.

"The maximum increase that these tenants will face each year is nine per cent, until they reach 60 per cent of the market rent.

"We will continue to set rents for the 97 former regulated tenants at Millbank every two years using the Rent Officer's formula."