Rushanara Ali has resigned from her role as Homelessness Minister following accusations of hypocrisy over a big rent rise on a property she owns in East London.
The controversy, first reported by the i Paper, drew sharp criticism from opposition politicians and tenant campaign groups, leading to her resignation.
The issue arose when four tenants renting Ms Ali's east London house received an email last November, giving them four months' notice that their tenancy would not be renewed because Ms Ali was selling the property.
The tenants were offered a rolling contract, but they turned that down and weeks after they vacated, the minister’s property was re-listed with a £700 monthly rent hike.
Promotes the Renters' Rights Bill
However, critics highlight that the move clashes with Ms Ali's public role on tenant protections and her promotion of the Renters' Rights Bill.
Under the Bill, landlords would be prevented from re-listing properties for six months after ending a tenancy to sell.
In her resignation letter, Ms Ali said: "At all times I have followed all relevant legal requirements."
She acknowledged that remaining in her post would be a 'distraction from the ambitious work of this government'.
Ms Ali continued: "It is with a heavy heart that I offer you my resignation as a minister."
Evicted tenants to sell
A source close to the minister told one media outlet the tenancy ended because the house was put up for sale with an asking price of £914,995, which was reduced by £20,000 in February 2025.
Opposition figures were quick to condemn Ms Ali's actions with Conservative Party chairman Kevin Hollinrake labelling her conduct 'staggering hypocrisy'.
He added: "You can't say those things, then do the opposite in practice, as a landlord."
The SNP's Pete Wishart called the situation 'shameful', while a Liberal Democrat spokesperson said that Ms Ali had 'fundamentally misunderstood her role'.
Tenant campaigners were also unimpressed with Siân Smith from the London Renters Union saying the minister's actions were 'indefensible' due to a 'clear conflict of interest'.
'Minister benefited from underhand tactics'
Shelter's director of communications, Mairi MacRae, said: "It beggars belief that after months of dither and delay, the government's own Homelessness Minister has profited from the underhand tactics the Renters' Rights Bill is meant to outlaw."
Generation Rent's Ben Twomey called the allegations 'shocking’ and called for swift action to boost tenant protections.
The Renters' Rights Bill returns to Parliament next month for its final stages before becoming law.
The Bill bans Section 21 'no-fault’ evictions and mandates four months' notice for landlords wanting to sell – and prevent the property being re-listed for rent within six months of an eviction.
Ms Ali's resignation marks the sixth departure from Kier Starmer's government, adding to a series of embarrassments for Labour.
It also follows her prior decision to relinquish her building safety duties after attending a controversial conference linked to the Grenfell inquiry.
The former tenants also alleged that the property's letting agents had, unlawfully, tried to charge them £2,000 for repainting costs and £395 for professional cleaning - but the agents didn't respond to the i newspaper.
Should be held accountable
Simon Thompson, the managing director of Accommodation for Students, said: "There will be landlords who will be saying Ms Ali hasn't done anything wrong, and they would be right.
"However, as a government minister promoting the Renters' Rights Bill she should be held accountable for its ramifications.
"That includes evicting tenants to sell a property, which won't be possible for six months after eviction under the new law."
He added: "As a landlord, Ms Ali has learned firsthand that the Bill will completely reshape how tenancies are handled."
