Rushanara Ali has resigned as England's homelessness minister after it emerged she evicted four tenants from a property she owns and then re-let it weeks later for £700 more a 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 following intense criticism from housing charities and opposition parties. In a letter to Prime Minister Keir Starmer, the Labour MP said she had followed all legal requirements but acknowledged that continuing in her role would be a distraction from the government's work. Starmer thanked her for her 'diligent work' and said she would continue to support the government from the backbenches.
Ali had been accused of hypocrisy for speaking out against private renters being exploited while allegedly profiting from a rent increase. The renters' rights bill, due to come into force next year, will ban landlords who end a tenancy to sell a property from relisting it for a higher rent. Conservative Party Chair Kevin Hollinrake accused Starmer of presiding over 'a government of hypocrisy and self-service', while Mairi MacRae of Shelter said the story served as 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 its expiration while the property remained on the market, but they decided to leave. The property, near Ali's Bethnal Green and Stepney constituency, is listed for sale at £894,995.
