Homelessness Minister Rushanara Ali has stepped down after facing accusations of hypocrisy over rent increases on a property she owns in east London.

The row began when Ali ended a fixed-term tenancy to sell the property but later re-listed it for rent at £700 more per month—within six months—despite currently pushing legislation to ban such practices under the government’s Renters’ Rights Bill.

The story, first reported by the i newspaper, quoted a former tenant who received four months’ notice in November 2024 that the lease would not be renewed. Soon after they moved out, the property was back on the rental market at the higher price.

In her resignation letter to Prime Minister Sir Keir Starmer, Ali insisted she had “followed all relevant legal requirements” and acted responsibly, but admitted her continued presence in the role would be a distraction from the government’s housing agenda.

Starmer thanked Ali for her “diligent” work, particularly her efforts to repeal the Vagrancy Act, and said he expected her to continue supporting the government from the backbenches.

Sources close to Ali said the decision to end the tenancy was due to plans to sell the property, and that tenants were offered the option to stay on a rolling contract. The property reportedly failed to sell and was then re-listed for rent.

The timing is politically sensitive, as Labour had campaigned on stronger rights for renters. The Renters’ Rights Bill—now in its final stages—would prevent landlords from re-letting a property within six months if a tenancy was ended for the purpose of selling.

Housing campaigners, including the London Renters Union and the Renters’ Reform Coalition, called her actions “indefensible” and said resignation was “the right decision.” Opposition figures, including Conservative Party chair Kevin Hollinrake, accused Ali of “staggering hypocrisy.”

Ali’s departure makes her the sixth MP to leave Starmer’s government over policy disputes or allegations. While not a threat to the government’s stability, it is another blow to its image.

This is not the first controversy Ali has faced. Last year, she relinquished part of her ministerial portfolio on building safety after criticism over her attendance at a conference linked to a company cited in the Grenfell inquiry, saying “perception matters.” Photo by David Woolfall, Wikimedia commons.