Homelessness Minister Rushanara Ali quits over rent hike claims

Rushanara Ali has resigned as the homelessness minister, according to Downing Street. The step came after she was accused of hypocrisy over the way she handled rent increases on a house she owns in east London. There were calls for her to step down from homelessness charities and opposition politicians.

I have followed all relevant legal procedures at all times,

she wrote in a letter to the prime minister, but that remaining in the role would be a "distraction from the government's exciting work.

Ali ended her tenants' fixed-term lease in order to sell up, but then relisted the house for rent at a higher price within six months, which is something she is currently trying to outlaw under the Renters' Rights Bill. A former tenant of the i Paper revealed in an email in November that gave four months' notice that the lease would not be renewed. The house in east London had been re-listed at £700 a month higher right after she and the three other tenants had departed, according to her. Ali wrote in a letter to the prime minister,

It is with a heavy heart that I resign as a minister.

I believe I took my obligations and obligations seriously,she continued, insisting thatat all times I have followed all relevant legal requirements.

However, it is likely that continuing in my position would be a distraction from the government's exciting work.

I have therefore decided to resign from my ministerial post. Prime Minister Sir Keir Starmer thanked her for her service, which he described as diligent in reaction to her departure. In Bethnal Green and Stepney, the Prime Minister lauded her efforts to repeal the Vagrancy Act, adding: "I know you will continue to protect the government from the backbenches and represent the best interests of your constituents.

According to a source close to Ali, the previous fixed-term deal had been ended because the house was being auctioned and the tenants had been told they could stay on a rolling basis while the house stood on the market, but the tenants were forced to leave because they had chosen to go. The house was listed on the market in November 2024 at £914,995, but the i Paper said it was only a rental because it had not sold. Ali's resignation is particularly tense due to the subject matter, Labour went into the election promising to expand the rights of private tenants. Ali has been accused of breaking the very rules they are currently in Parliament at the time. The government's Renters' Rights Bill is now in its final stages in Parliament, and it will prohibit landlords from re-listing a house for rent if they haven't completed a tenancy in order to sell for six months. When the law is passed, landlords must give four months' notice to tenants, which is not expected to be until at least next year. Ali's activities were indefensible and she must resign as a result of a clear conflict of interest with the Bill in its final stages, according to London Renters Union spokesperson Siân Smith. Her resignation was the right decision, according to the Renters' Reform Coalition, which represents private renters. Her position was completely untenable, director Tom Darling said.

The government must get to work and bring an end to no-fault evictions right now,

Rushanara Ali said,

so that no more tenants are exposed to the kind of behavior Rushandra Ali was involved in Kevin Hollinrake, the Tory Party chairman, was one of several opposition politicians accusing Ali of

staggering hypocrisyover the property's handling.It's right that Rushanara Ali has now left the government after our pleas for her to leave,she said.Keir Starmer promised a government of honesty but has instead presided over a cabinet of hypocrisy and self-service.

Rushanara Ali fundamentally misunderstook her position,

a Liberal Democrat spokesperson said while lauding her departure. They said her remarksonly added insult to injury" after years of Conservative delays for renter's rights reform.

Since Ali has resigned quickly, the tale is unlikely to drag on, but it does not represent the government's second humiliating departure. Ali is the sixth member of Starmer's cabinet who has resigned due to political reform or allegations against them. That is not the number that threatens the government. But it is also painful for a government that had been long in opposition to get its house back to order. This was also not the first time Ali had been chastised. When she attended a conference relating to the parent company of one of the firms heavily criticized in the recent Grenfell investigation, she was forced to relinquish a portion of her ministerial portfolio last year. She said she was rethinking her building safety brief because "perception matters.

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