It is claimed up to 10 families have been ordered out by loyalists
Police are stepping up security in the Waterside area of Londonderry after a number of families were ordered to leave their homes because of a loyalist feud.
Tensions have arisen from a power struggle within the local leadership of the Ulster Volunteer Force.
The police have confirmed they are investigating a number of reports of intimidation.
Democratic Unionist Party assembly member William Hay said both sides should resolve their differences.
"The word on the street is that certainly there seems to be an internal feud going on within the UVF for a number of weeks," he said.
"Irrespective of what the problems are I would appeal to people to roll back from the brink and not make a bad situation worse."
Meanwhile, loyalist sources in the city say they believe a power-struggle has developed within the UVF following an attempted coup.
It has been claimed that up to 10 families have been ordered to leave although this has proved impossible to verify.
A Progressive Unionist Party spokesman said there was no in fighting within the UVF in the city and said no families had left the city
The Housing Executive in Derry said they had no reports of any tenants complaining of being put of of their homes.
However, it is understood that some of the families are looking for new accommodation outside Northern Ireland.
The families say they are too afraid to speak about the issue.
They believe the threats are real and their lives are potentially at risk.
Police Acting Chief Superintendent Dawson Cotton, said patrols in the city had been stepped up in an effort to thwart those involved.
In a statement, he asked community leaders to use their influence to help bring this type of criminal activity to an end.