Homelessness Minister Rushanara Ali has resigned from her post following accusations of hypocrisy over rent increases on a property she owns in east London. Downing Street confirmed her decision on Thursday.
The row began after reports that Ali ended a fixed-term tenancy to sell the property, only to re-list it for rent at a higher price within six months. The move appeared to contradict measures she has been championing in the government’s Renters’ Rights Bill, which would ban landlords from re-letting within that timeframe after ending a tenancy to sell.
In her resignation letter to Prime Minister Sir Keir Starmer, Ali insisted she had complied with all legal requirements and had acted responsibly. However, she acknowledged that remaining in her role risked distracting from the government’s work. “It is with a heavy heart that I offer you my resignation as a minister,” she wrote, adding that she believed she had taken her duties seriously.
The story was first reported by the i Paper, which quoted a former tenant saying she and three others were given four months’ notice in November that their lease would not be renewed. The property was later advertised for rent at £700 more per month.
A source close to Ali said the tenancy was ended because the home was being put up for sale, and tenants had been told they could stay on a rolling basis while it was on the market. The asking price was later reduced, and the house was re-listed for rent after failing to sell.
The Renters’ Rights Bill, now in its final stages in Parliament, is expected to introduce new restrictions on such practices, but not before next year. Critics, including homelessness charities and opposition politicians, called for her resignation, accusing her of a conflict of interest. London Renters Union described her actions as “indefensible,” while Tory chairman Kevin Hollinrake labelled them “staggering hypocrisy.”
Sir Keir Starmer thanked Ali for her “diligent” work, praising her efforts to repeal the Vagrancy Act and expressing confidence she would continue serving her constituents from the backbenches.
This is not the first time Ali has faced controversy. Last year, she relinquished part of her ministerial portfolio after attending a conference linked to a company criticised in the Grenfell inquiry, saying she stepped back because “perception matters.”
