Homelessness minister Rushanara Ali resigns after evicting tenants and hiking rent by £700
The Labour Party’s homelessness minister has resigned following allegations that she ’evicted tenants’ from her property in East London before raising the rent by £700 a month.
Rushanara Ali was found to have kicked out four tenants from her townhouse before going on to re-advertise the same four-bedroom property for around £700 more per month.
The Labour MP for Bethnal Green and Stepney has previously been vocal about renters’ rights and “private renters being exploited".
However, it’s now been claimed the MP ’evicted four tenants’ from the townhouse, located less than a mile from London’s Olympic Park, ahead of selling the property - only to re-list the home on the rental market at an increased cost months later.
She has now left her post as homelessness minister, saying that remaining in the role would be "a distraction from the ambitious work of this government".
In a letter to the Prime Minister, she wrote: "It is with a heavy heart that I offer you my resignation as a minister.
"It has been the honour of my life to have played my part in first securing and then serving as part of this Labour government. You have my continued commitment, loyalty and support."
She added that she "followed all relevant legal requirements" and "took my responsibilities and duties seriously, and the facts demonstrate this".
Composite of handout photos issued by the Prime Minister’s Office of the letter by Housing minister Rushanara Ali (left) to Prime Minister Sir Keir Starmer resigning from Government, and the Prime Minister’s reply (right). Picture: Alamy
In a concise reply, Sir Keir Starmer said: "Thank you for all you have done to deliver this government’s ambitious agenda.
"Your diligent work at the Ministry of Housing, Communities and Local Government, including your efforts to put in measures to repeal the Vagrancy Act, will have a significant impact.
"You have also begun the process of delivering landmark reforms including tackling harassment and intimidation in public life and encouraging more people to engage and participate in our democracy.
"This will leave a lasting legacy. I know you will continue to support the government from the backbenches and represent the best interests of your constituents in Bethnal Green and Stepney."
Ms Ali, who has previously criticised private landlords and publicly backs Labour’s Renters’ Rights Bill, was found to have hiked the rent following an investigation by the iPaper.
The bill, which is set to become law next year, is designed to stop the exploitation of the private rental market, with the new regulations aiming to stop landlords from re-letting their property at an increased rental price within six months of evicting tenants to sell it.
According to the paper, a source close to Ali said the tenants had been informed their tenancy would not be renewed and were instead offered a rolling contract.
They were told the rolling contract was necessary as the property was put up for sale.
After failing to find a buyer, the house was re-listed for rent, the paper reported.
A spokesperson said: “Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.”
Conservative shadow Housing Secretary, James Cleverly, said Ms Ali should “consider her position,” branding the situation “an example of the most extreme hypocrisy.”
The investigation found that until as recently as March last year, Ms Ali had been renting the house for £3,300 per calendar month.
Less than six months later, in November 2024, her four tenants were informed that their long-term lease would not be renewed.
Instead, the tenants were told the agreement would switch to a rolling contract and were given four months’ notice.
However, within weeks of their departure, the property reappeared online for nearly £4,000-a-month.
When the news outlet visited the address on Wednesday, new tenants confirmed they had moved in “four or five months ago”, with the monthly rent around £4,000 a month.
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