A retirement home developer due to move into Merton next year has been accused of misleading pensioners following an undercover report.

McCarthy and Stone are set to build a 51-bed retirement home in Raynes Park next year as part of a plan to redevelop the old Nelson Hospital site on Kingston Road.

Last month a Channel 4 documentary, Undercover Retirement Home, accused the company of allegedly undervaluing the homes of buyer’s that opt to fund their new apartment by part exchange.

The retirement home, which will be the first McCarthy and Stone property in the borough, has already faced opposition by residents who have criticised the building, which has received planning permission, for being too large and "ugly" and have said the developer has not taken their concerns into consideration.

Ian Smith, a resident of adjoining Manor Gardens, said: "They must not be feeling very happy about the adverse publicity so they will possibly be on their good behaviour.

"What we can hope for is that between now and when they start work on the nursing home we can try to appeal to their better nature and ask if they would be able to modify the plans as much as possible.

"We would like to get some large trees to screen it from us.

"We are still trying and we are still fighting."

Following the programme McCarthy and Stone launched a review into issues raised in the documentary.

A spokesperson said: "While the programme did highlight areas where we could train our people better, the sales consultation shown is uncharacteristic of our usual approach.

"Taking on board the criticism though, and to ensure we always achieve the highest standards of customer service, we have already updated some of our sales literature and conducted refresher sales training.

"We will also be comprehensively reviewing our sales processes over the coming weeks and will promptly address any shortcoming identified."

Construction on the local care centre is expected to start in early 2013 with the retirement home construction beginning in April 2013