Rushanara Ali has resigned as homelessness minister, Downing Street has confirmed, reports BBC.
The move comes after she was accused of hypocrisy over the way she handled rent increases on a house she owns in east London.
There were calls for her to step down from homelessness charities and opposition politicians.
In a letter to the prime minister she said “at all times I have followed all relevant legal requirements” but that remaining in the role would be a “distraction from the ambitious work of this government”.
The row was sparked after Ali ended her tenants’ fixed-term contract in order to sell up, but then re-listed the house for rent at a higher price within six months, which is something she is currently trying to outlaw under the Renters’ Rights Bill.
In a story first broken by the the i Paper, a former tenant said she was sent an email in November giving four months’ notice the lease would not be renewed.
She said shortly after she and the three other tenants had moved out, the house in east London had been re-listed at a rent £700 a month higher.
In a letter to the prime minister, Ali wrote: “It is with a heavy heart that I offer you my resignation as a minister.”
Insisting that “at all times I have followed all relevant legal requirements” she 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.”
Responding to her resignation, Prime Minister Sir Keir Starmer thanked her for her work, which he called “diligent”.
The PM praised her work to repeal the Vagrancy Act and added: “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 said the previous fixed-term contract had been ended because the house was being put up for sale and the tenants had been told they could stay on a rolling basis while the house was on the market, but they had chosen to go.
The house was put on the market in November 2024 with an asking price of £914,995 but that was reduced in February by £20,000 and the i Paper said it had only been re-listed as a rental because it had not sold.
Ali’s resignation is particularly awkward because of the subject matter, as Labour went into the election promising to strengthen the rights of private tenants.
The very rules they are taking through Parliament at the moment would have stopped what Ali has been accused of.
The government’s Renters’ Rights Bill is in its final stages in Parliament, and will ban landlords re-listing a property for rent, if they have ended a tenancy in order to sell, for six months.
Landlords must also give four months’ notice to tenants when the legislation is passed, which is not expected to be until at least next year.
The law has not changed yet – but it is possible the homelessness minister’s actions would have been contrary to the very rules her department was trying to introduce.
London Renters Union spokesperson Siân Smith said Ali’s actions were “indefensible” and she “must step down” due to a “clear conflict of interest” with the Bill in its final stages.
The Renters’ Reform Coalition, which represents private renters, said her resignation was “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 other opposition politicians accusing Ali of “staggering hypocrisy” over the handling of the property.
After she quit, 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.”
Also welcoming her resignation, a Liberal Democrat spokesperson said: “Rushanara Ali fundamentally misunderstood her role.”
They said her actions”only added insult to injury after years of delay for renters’ rights reform under the Conservatives”.
Since Ali has quit quickly, the story is unlikely to drag on, but it marks another embarrassing departure for the government.
Ali is the sixth MP who has quit Starmer’s government over policy or because of allegations made against them.
That is not the sort of number that threatens the government. But it is embarrassing for a government that had a long time in opposition to get its house in order.
This was also not the first time Ali has been criticised. She had to give up part of her ministerial portfolio last year, when she attended a conference linked to the parent company of one of the firms heavily criticised in the recent Grenfell inquiry.
Giving up her duties managing building safety and the government’s response to the Grenfell Tower fire, she said she was relinquishing her building safety brief because “perception matters”.
