A two million pound pub has been converted into a jumble yard, amid continuing rumours it will eventually be redeveloped into flats.

The Royston Arms, in Chingford Mount Road, closed in September last year after being sold by Stonegate Ltd to estate agent Kingsbury for £1.1million. 

It was then reportedly sold on after the Chingford Islamic Society, situated opposite the pub, told the Guardian it was out-bid with its £2.2.million offer. 

Since the beginning of this year, the entire ground floor of the pub has been used to sell various goods, including fridges, DVDs, fish tanks, beds and sofas. 

The company behind the jumble sale, ThisnThatLtd, paid landowner New York Developments Limited £12,000 in December to lease the pub for a year. 

New York Developments Limited, based in High Road, Loughton, applied last month for a certificate of lawful development so that the pub could be used for retail purposes.  

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A sign advertises two hours parking for £1 at the 'This n That' shop  

There are still strong rumours among local businesses that the site is to be developed into flats, although no planning application has been submitted to Waltham Forest council. 

Volunteer Ozzy Chaudary said the concept developed after the pub closed and was being emptied out.  

The 25-year-old from Leyton said: "It was something that developed from nothing and the community love it. 

"Instead of paying someone to empty the pub and destroy everything, we offered to take over and sell bits from the pub at a really cheap price. 

"People then started bringing us stuff and we started sourcing items based on demand. 

"The main objective is do not waste but we are also helping a lot of people in the community, especially people who are socially deprived. 

"Instead of sitting empty, we are putting the pub to good use and I imagine it will still this way for the rest of the year."

Mr Chaudary said the pub has become a "stopping point" for Chingford residents with volunteers offering a pick-up and drop-off service. 

Resident Janet Blythe of Cranston Gardens, Chingford, claims neighbours are "horrified" by the pub's new look. 

The 63-year-old, said: "This is not a jumble yard - it is a tip. They are making this part of Chingford look like a ghetto area. 

"It is a crying shame this beautiful building has been turned into this. The community genuinely don't want this and people are horrified."