UK Homelessness Minister Rushanara Ali has resigned from her position following widespread criticism over her handling of a property she owns in east London, where she issued an eviction notice to tenants and subsequently raised the rent significantly.
Ali, who also serves as the Labour MP for Bethnal Green and Stepney, faced growing calls to step down after it was reported she had asked her tenants to vacate her property with four months’ notice, citing plans to sell. However, shortly after the tenants left, the house was relisted with a 21% rent increase — amounting to a rise of £700 per month.
While Ali maintained she had not broken any laws, she acknowledged in a resignation letter to Prime Minister Keir Starmer that remaining in her ministerial role could become a distraction. “I believe I took my responsibilities and duties seriously . . . However, it is clear that continuing in my role will be a distraction from the ambitious work of the government,” she wrote.
Political Fallout for Labour
Her departure marks another challenge for Starmer’s government, which is already struggling in public opinion polls. The Labour Party is trailing behind Nigel Farage’s Reform UK, a right-wing populist party gaining traction after Labour’s difficult first year in office.
Although the homelessness minister role is not a cabinet position, it holds symbolic and policy significance, especially for Labour MPs and supporters who prioritize social justice and tenant rights.
In his response, Starmer thanked Ali for her service and expressed confidence that she would continue to serve her constituents from the backbenches.
Timeline of Events
The controversy was first reported by The i Paper, which revealed that in November, Ali told her tenants their lease would not be renewed, citing intentions to sell the property. However, within weeks, the home was advertised again for rent at a much higher rate. Sources close to Ali claimed the house was only relisted after failing to sell.
Homelessness charities and opposition figures were quick to condemn the incident, citing a contradiction between Ali’s actions and her role as homelessness minister.
Reactions from Opposition
Kevin Hollinrake, Chair of the Conservative Party, criticized the situation, referencing Ali’s previous statements advocating for stronger tenant protections. “Keir Starmer promised a government of integrity, but has instead presided over a government of hypocrisy and self-service,” Hollinrake said.
While Ali’s resignation may help Labour contain further political damage, the incident highlights the growing scrutiny on elected officials’ personal conduct, especially in matters involving housing during a nationwide affordability crisis.
