Ministers have suggested the charity’s actions may not have been justified.
The Poppy Factory — a veterans (non for profit) charity that partners with the Royal British Legion is alleged to have served no-fault eviction notices to residents living in a block of flats in west London.
According to reports by the BBC and The Observer, the charity informed tenants last month that rents would be rising by as much as 35% which in some cases is up to £800 a month.
The outlets also say the affected residents include people on benefits “and several with severe health and mobility issues.”
The reports also highlight that one tenant is recovering from cancer treatment, while others had reportedly raised concerns about black mould in their homes.
A spokesperson for The Poppy Factory told an online landlord news media that recent coverage has included “unsubstantiated details of tenants’ personal circumstances”.
And the charity has written this on its website: “The Poppy Factory is carrying out a review of some private rents on our residential estate in Richmond upon Thames.
“We are an employment charity supporting vulnerable veterans and their families, and income from our private rented housing is essential to funding this work. The homes affected by the rent review are let on the open market and rents have often been well below local levels.
“The decision to review private rents on our residential estate has been taken with great care.
“We obtained three independent professional assessments of the market rent for each flat, based on its current condition. All three assessments were at similar levels.
“No veteran households are affected by this review. Homes provided under our charitable mission will continue to be offered at significantly subsidised rents.
“We recognise that proposed rent increases on some private rented properties have caused concern for some residents. We have invited tenants to discuss their individual circumstances, arranged independent inspections and continue to offer further support.
“We extended our consultation period to allow more time for tenants to consider the information provided. No one is being asked to pay more than others already pay for similar properties, or above market rent for the property condition.”
The Ministry for Housing, Communities and Local Government spoke to The Observer saying: “There’s absolutely no requirement to increase rent to full market levels ahead of the Renters’ Rights Act coming into force, and charities using legislation as an excuse to push renters on to the street deserve the public’s contempt.
“This behaviour proves why a Renters Rights Act is so necessary.”