Rushanara Ali has resigned as homelessness minister for England after it emerged she evicted four tenants from a property she owns, then re-let it weeks later for £700 more per month. The tenants were told in November last year that their fixed-term contract would not be renewed because the east London home was being put up for sale. Shortly after they left, the property returned to the market with the monthly rent increased from £3,300 to £4,000, as first reported by the i Paper.
Ali announced her resignation on Wednesday evening after hours of intense criticism from housing charities and opposition parties. In a letter to Prime Minister Keir Starmer, the Labour MP said she had 'at all times' followed 'all legal requirements' and taken her responsibilities 'seriously'. She added: '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.'
Starmer responded by thanking Ali for her 'diligent work' at the Ministry of Housing, Communities and Local Government, saying it would have 'a lasting impact'. He expressed confidence that she would continue to support the government from the backbenches and represent her constituents in Bethnal Green and Stepney.
Ali had been widely criticised for apparent hypocrisy, having spoken out against private renters being exploited and supporting the renters’ rights bill, which will ban landlords who end a tenancy to sell a property from relisting it for a higher rent. The bill is due to come into force next year.
Conservative Party Chair Kevin Hollinrake accused Starmer of presiding over 'a government of hypocrisy and self-service', while the Scottish National Party’s Peter Wishart said Ali should have resigned immediately. Jess Barnard, a former chair of Young Labour, stated: 'MPs should not be landlords and landlords should not be Labour MPs.' Mairi MacRae of Shelter called the situation a 'damning reminder that the cards are fundamentally stacked against renters'.
A spokesperson for Ali said the tenants stayed for the entirety of their fixed-term contract and were informed they could stay beyond the expiration while the property remained on the market, but they decided to leave. It is understood that after an end-of-tenancy inventory, the managing agent requested payment for repairs, but this was not authorised by Ali and was cancelled after she intervened.
