Rushanara Ali has stepped down as homelessness minister today following intense pressure over reports she evicted four tenants from her east London property before relisting it with a £700 monthly rent increase. The MP for Bethnal Green and Stepney announced her resignation with “a heavy heart” in a letter to Prime Minister Keir Starmer, stating that remaining in the role would be “a distraction from the ambitious work of this Government.”
The 50-year-old Labour minister faced mounting calls to resign after the i newspaper revealed she had given tenants four months’ notice to vacate her four-bedroom townhouse near London’s Olympic Park last November. The property, previously rented for £3,300 per month, was subsequently relisted at £4,000 monthly after the tenants departed.
In her resignation letter to the Prime Minister, Ali wrote: “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.”
The scandal erupted as Labour prepares to implement its Renters’ Rights Bill, which will specifically ban landlords from relisting properties at higher rents within six months of evicting tenants. The legislation aims to protect renters from practices similar to those Ali herself allegedly employed.
Former tenant Laura Jackson, who was one of four occupants given notice to leave the property, expressed her frustration at the situation. “It’s an absolute joke. Trying to get that much money from renters is extortion,” she told reporters. Jackson confirmed they had collectively paid £3,300 monthly rent before receiving the eviction notice via email.
Conservative Party chairman Kevin Hollinrake led calls for Ali’s resignation, describing her actions as “staggering hypocrisy.” He stated: “She’s spoken out about exploiting tenants, about providing more protections to tenants. You can’t say those things, then do the opposite in practice, as a landlord. She’s got to resign.”
According to parliamentary records, Ali owns three London properties in total, including two rental properties and one co-owned with a family member. The controversy centres on the townhouse located less than a mile from the London Stadium in Stratford, which was initially listed for sale at £914,995 whilst tenants remained in occupation.
A spokesperson for Ali maintained throughout the controversy that “Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.” Sources close to the minister claimed tenants were offered a rolling contract to remain in the property whilst it was marketed for sale, but they chose to leave. The property was only relisted for rent after failing to sell, with the asking price later reduced by £20,000 in February 2025.
The resignation represents a significant blow to Labour’s housing agenda, with Ali having been appointed Parliamentary Under-Secretary of State for Homelessness and Rough Sleeping just over a year ago in July 2024. She had previously served as minister for building safety but relinquished that portfolio in October 2024 following pressure from Grenfell Tower fire survivors.
Housing campaigners expressed outrage at the revelations. Tom Darling, director at the Renters’ Reform Coalition, called the situation “mind-boggling,” stating: “It’s mind-boggling that we have a homelessness minister who has just evicted four people in order to rake in more rent, something that will soon be illegal under the Renters’ Rights Bill her own department is bringing through Parliament.”
Siân Smith, spokesperson for the London Renters Union, was equally critical: “Soaring rents are a leading cause of homelessness, and during the worst housing crisis in decades, it is indefensible for the minister for homelessness to be kicking out tenants and hiking rents.”
The scandal drew criticism from across the political spectrum. SNP Deputy Leader Peter Wishart suggested the controversy should be “a test of Prime Minister Keir Starmer’s leadership,” whilst former Young Labour chair Jess Barnard stated: “Seems an appropriate time to reiterate MPs should not be landlords, and landlords should not be Labour MPs.
Government ministers initially attempted to defend Ali. Home Secretary Yvette Cooper told broadcasters: “I don’t know any of the details of this, but I understand that she has followed all of the rules in this case.” Chancellor Rachel Reeves similarly stated she “didn’t understand” why the Conservatives were calling for Ali to resign, saying: “I don’t know the details, but Rushanara Ali seems to have done everything in accordance with the law.
The timing of the scandal proved particularly damaging as Ministry of Justice figures show there were 7,353 Section 21 “no-fault” evictions in England during the first quarter of 2025. Labour’s Renters’ Rights Bill, currently progressing through Parliament, aims to abolish such evictions and provide greater security for tenants.
Ben Twomey, chief executive of Generation Rent, described the allegations as “shocking and a wake-up call to Government on the need to push ahead as quickly as possible to improve protections for renters.” He added: “It is bad enough when any landlord turfs out their tenant to hike up the rent, or tries their luck with unfair claims on the deposit, but the minister responsible for homelessness knows only too well about the harm caused by this behaviour.”
Ali, who became Britain’s first British Bangladeshi MP when elected in 2010, had built a reputation as an advocate for housing rights and social justice. Born in Bishwanath, Bangladesh, in 1975, she emigrated to London’s East End aged seven and grew up in Tower Hamlets, attending Mulberry School for Girls and Tower Hamlets College.
The resignation leaves Prime Minister Starmer facing questions about ministerial standards and the government’s commitment to tackling the housing crisis. With homelessness figures showing 151,630 children currently living in temporary accommodation in England, the departure of the minister responsible for addressing this crisis could not come at a worse time.
As Westminster awaits news of Ali’s replacement, housing advocates are calling for swift action to demonstrate the government’s continued commitment to protecting renters and tackling homelessness. The Renters’ Rights Bill, which would have prevented practices like those allegedly employed by Ali, remains in Parliament awaiting final approval.
The controversy highlights broader tensions within Labour over MPs who act as landlords whilst legislating on housing policy. With calls growing for stricter rules on parliamentary conflicts of interest, Ali’s resignation may prompt wider reforms to prevent similar scandals in future.
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