Homelessness Minister Rushanara Ali quits over rent hike claims

Downing Street has confirmed that Rushanara Ali has resigned as homelessness minister. The decision comes after she was accused of hypocrisy over her handling of rent increases on a property she owns in East London. The resignation followed calls for her to step down from homelessness charities and opposition politicians.

In a letter to the Prime Minister, she wrote, "I have followed all relevant legal procedures at all times," but added that remaining in the role would be a "distraction from the government's exciting work."

Ali had ended her tenants' fixed-term lease to sell the property but then relisted it for rent at a higher price within six months, a practice she is currently attempting to outlaw under the Renters' Rights Bill. A former tenant revealed in the i newspaper that in November she was given four months' notice that her lease would not be renewed. She claimed the house in East London had been relisted at £700 a month higher just after she and the three other tenants had left.

In her resignation letter to the Prime Minister, Ali wrote:

"It is with a heavy heart that I resign as a minister. I believe I took my obligations and responsibilities seriously," she continued, insisting that "at 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."

In response to her departure, Prime Minister Sir Keir Starmer thanked her for her "diligent" service. He praised 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 in Bethnal Green and Stepney."

According to a source close to Ali, the previous fixed-term deal had been ended because the property was being auctioned, and the tenants had been told they could stay on a rolling basis while the house was on the market. However, the tenants chose to leave. The property was listed on the market in November 2024 for £914,995, but the i newspaper stated it was only a rental because it had not sold.

Ali's resignation is particularly tense due to the subject matter. Labour's election promise was to expand the rights of private tenants, and Ali has been accused of breaking the very rules they are currently trying to pass in Parliament. The government's Renters' Rights Bill is now in its final stages in Parliament and will prohibit landlords from relisting a property for rent within six months if they have ended a tenancy in order to sell. When the law is passed, landlords must give four months' notice to tenants, which is not expected until at least next year.

Siân Smith, a spokesperson for the London Renters Union, called Ali's actions "indefensible" and said she "must resign" due to a "clear conflict of interest" with the Bill in its final stages. The Renters' Reform Coalition, which represents private renters, called her resignation "the right decision." Director Tom Darling said, "Her position was completely untenable."

"The government must get to work and bring an end to no-fault evictions right now," said Rushanara Ali, "so that no more tenants are exposed to the kind of behaviour Rushandra Ali was involved in." Kevin Hollinrake, the Tory Party chairman, was one of several opposition politicians who accused Ali of "staggering hypocrisy" over her handling of the property. "It's right that Rushanara Ali has now left the government after our pleas for her to leave," he said. "Keir Starmer promised a government of honesty but has instead presided over a cabinet of hypocrisy and self-service."

A Liberal Democrat spokesperson lauded her departure, saying that Rushanara Ali "fundamentally misunderstood her position." They said her remarks "only added insult to injury" after years of Conservative delays to renters' rights reform.

As Ali has resigned quickly, the story is unlikely to drag on. However, it is the second humiliating departure for the government. Ali is the sixth member of Starmer's cabinet to have resigned due to political reform or allegations against them. That number is not a threat to the government, but it is a painful reminder for a government that has long been in opposition to get its house in order. This was also not the first time Ali had been criticised. When she attended a conference relating to the parent company of one of the firms heavily criticised 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."