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Rushanara Ali has resigned from her position as homelessness minister, Downing Street has confirmed.
The resignation follows allegations of hypocrisy concerning rent increases on a property she owns in east London.
Calls for her resignation had been mounting from homelessness charities and opposition politicians.
In her resignation letter to the Prime Minister, Ali stated, “at all times I have followed all relevant legal requirements,” but acknowledged that remaining in her role would be “a distraction from the ambitious work of this government.”
The controversy arose after Ali terminated her tenants’ fixed-term contract with the intention to sell, but subsequently re-listed the property for rent at a higher rate within six months. This action is at odds with the principles she is currently seeking to enshrine in law through the Renters’ Rights Bill.
As first reported by the i Paper, a former tenant claimed she received a notice in November stating that the lease would not be renewed, giving her and the other tenants four months to vacate the property.
The tenant further stated that shortly after they vacated the east London residence, it was re-listed at a rental price £700 per month higher.
In her letter to the Prime Minister, Ali expressed that it was “with a heavy heart that I offer you my resignation as a minister.”
She insisted that “at all times I have followed all relevant legal requirements” and added: “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.”
Prime Minister Sir Keir Starmer responded to her resignation by thanking her for her “diligent” work.
The Prime Minister commended her efforts in repealing the Vagrancy Act, adding, “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.”
A source close to Ali stated that the previous fixed-term contract was terminated due to the intention to sell the property. The tenants were reportedly offered the option to remain on a rolling basis while the property was on the market, but they ultimately chose to leave.
The property was listed for sale in November 2024 with an asking price of £914,995 but was reduced by £20,000 in February. The i Paper reported that it was re-listed as a rental property only after failing to sell.
Ali’s resignation is particularly sensitive given Labour’s commitment to strengthening the rights of private tenants.
The regulations currently being considered in Parliament aim to prevent the very actions of which Ali has been accused.
The government’s Renters’ Rights Bill, in its final stages in Parliament, seeks to prohibit landlords from re-listing a property for rent within six months of ending a tenancy for the purpose of selling.
The legislation will also require landlords to provide tenants with four months’ notice, though this is not expected to come into effect until next year.
While the law has not yet changed, the homelessness minister’s actions could be perceived as conflicting with the very principles her department was attempting to implement.
Siân Smith, a spokesperson for the London Renters Union, described Ali’s actions as “indefensible” and asserted that she “must step down” due to a “clear conflict of interest” given the Bill’s final stages.
The Renters’ Reform Coalition, representing private renters, characterized her resignation as “the right decision.”
“Her position was completely untenable,” said director Tom Darling.
“The government must get on now and end no-fault evictions urgently so that no more tenants are subject to the kind of behaviour Rushanara Ali engaged in”
Tory Party chairman Kevin Hollinrake was among opposition politicians accusing Ali of “staggering hypocrisy” in her handling of the property.
Following her resignation, he added: “It is right that Rushanara Ali has now quit the government following our calls for her to go.
“Keir Starmer promised a government of integrity but has instead presided over a government of hypocrisy and self-service.”
A Liberal Democrat spokesperson also welcomed her resignation, stating: “Rushanara Ali fundamentally misunderstood her role.”
They added that her actions “only added insult to injury after years of delay for renters’ rights reform under the Conservatives.”
While Ali’s swift resignation may prevent the story from lingering, it nonetheless represents another embarrassing departure for the government.
Ali is the sixth MP to resign from Starmer’s government due to policy disagreements or allegations.
While this number does not pose an immediate threat to the government, it is an unwelcome development for a government that had a significant period in opposition to prepare.
This is also not the first time Ali has faced criticism. She previously relinquished part of her ministerial responsibilities last year after attending a conference linked to the parent company of a firm heavily criticized in the recent Grenfell inquiry.
In relinquishing her duties overseeing building safety and the government’s response to the Grenfell Tower fire, she stated that she was doing so because “perception matters.”
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