In a dramatic turn of events, Rushanara Ali has stepped down as Homelessness Minister, just hours after facing backlash over a reported £700 rent increase at her east London townhouse.
The decision comes amid mounting criticism and accusations of hypocrisy, given her position championing the very people most affected by rising rents.
“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,” Ms Ali wrote in a letter to Sir Keir Starmer, Labour leader and Prime Minister.
Ms Ali’s resignation followed revelations that the rent on her four-bedroom property in Bethnal Green had surged from £3,300 to £4,000 per month shortly after the previous tenants moved out.
The backlash was swift. Critics, including Shadow Housing Secretary Kevin Hollinrake, described her actions as “staggering hypocrisy”.
In her resignation letter, the Labour MP for Bethnal Green and Stepney maintained she had “at all times” acted within legal bounds and taken her landlord responsibilities seriously.
“Remaining in the role would be a distraction from the ambitious work of this government,” she added.
Prime Minister Starmer responded to Ali’s resignation by thanking her for her “diligent work” at the Ministry of Housing, Communities and Local Government, saying her efforts would have “a lasting impact”.
However, the timing couldn’t be worse for Starmer’s leadership, already facing turbulence.
In recent months:
- Anneliese Dodds quit as international development minister in protest at foreign aid cuts.
- Louise Haigh resigned as transport secretary over a past police-related conviction.
- A Labour whip stepped down over disputes around the party’s welfare stance.
Ali’s exit marks the fourth ministerial resignation in a matter of months, intensifying scrutiny on the Labour government.
Rushanara Ali’s resignation adds another crack in the Labour government’s image, as criticism grows over a disconnect between policy and personal practice.
For a government vowing to fix the housing crisis, losing its Homelessness Minister over a private rent hike is more than just bad optics—it’s political dynamite.
According to reports, the property was initially taken off the rental market late last year, with previous tenants informed in November that their lease would not be renewed. They were given four months’ notice, reportedly under the premise that the property was being put up for sale.
Ms Ali is understood to have offered a rolling contract during this period, which the tenants declined. When the house failed to sell, it was relisted, but at the higher rental price.
The controversy escalated following revelations that Rushanara Ali had previously come under scrutiny for evicting tenants and increasing the rent by £700.
The Conservative Party has pounced on the situation. “It is right that Rushanara Ali has now quit the government following our calls for her to go … once again it’s one rule for Labour and one for everyone else.
With a fourth minister now having to step down in disgrace, it is clear the British public deserves so much better than the endless sleaze and scandal of this Labour government,” said Mr Hollinrake, who also chairs the Conservative Party.
The Liberal Democrats joined the condemnation, adding: “Rushanara Ali fundamentally misunderstood her role. Her job was to tackle homelessness, not to increase it.”
Pressure is now mounting on the Prime Minister to swiftly appoint a replacement who can lead the government’s homelessness agenda with credibility and urgency.
With the housing crisis still unresolved and tenant protections long overdue for reform, the departure of a homelessness minister under these circumstances strikes at the heart of the Labour government’s credibility.
Will the next appointee fare better, or will this controversy deepen the public’s growing mistrust of political leadership?
