Rushanara Ali: Labour MP resigns as homelessness minister over rent-hike row
Rushanara Ali has resigned as Parliamentary Under-Secretary of State for Homelessness and Rough Sleeping, following reports that she increased the rent on a property she owns by £700 shortly after evicting her tenants.
In a letter to the Prime Minister, the Labour MP said: “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.
“Further to recent reporting, I wanted to make it clear that at all times I have followed all relevant legal requirements. I believe I took my responsibilities and duties seriously, and the facts demonstrate this. However, it is clear that continuing in my role will be a distraction from the ambitious work of the Government. I have therefore decided to resign from my ministerial position.”
Labour leader Sir Keir Starmer accepted her resignation, writing: “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.”
Ali’s resignation comes after The i Paper reported that four tenants in a property she owns in East London were issued four months' notice last November. The house was then re-listed shortly after they vacated, with a £700 monthly rent increase.
Ali’s spokesperson previously stated that she “complied with all relevant legal requirements” and that the property had been put up for sale during the tenants’ contract. According to the spokesperson, it was only re-listed as a rental after failing to sell.
The incident drew sharp criticism from across the political spectrum. Generation Rent CEO Ben Twomey called the allegations “a wake-up call,” saying: “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.”
Tory Party chairman Kevin Hollinrake accused Ali of “staggering hypocrisy,” while SNP’s Westminster deputy leader Pete Wishart said she should have “immediately resigned.”
Ali, the first British Bangladeshi woman elected to Parliament, represents Bethnal Green and Stepney. Her background includes a focus on social mobility, equality, and housing. She owns a portfolio of London properties and earns additional income through rental properties alongside her MP salary.