The four-bed rental home that Labour minister Rushanara Ali 'kicked tenants out of to put on the market'... only to rent out at hiked price months later
Rushanara Ali is said to have ejected tenants from one of her properties in East London, before putting it back on the market for an extra £700 a month in rent.
Following mounting calls to resign amid claims of 'staggering hypocrisy', she said she would stand down from the Government to avoid becoming 'a distraction'.
Ms Ali bought the property in the Bow area, roughly a mile from the Olympic Park at Stratford, in May 2014 for £570,000 - just below the asking price of £585,000.
She is alleged to have told four tenants to move out of the home, only to relist it at a rent of £4,000 a month - a £700 rise - amid suggestions she failed to find a buyer.
Laura Jackson, 33, a self-employed restaurant owner, was one of those who rented the house, roughly a mile from the Olympic Park, in March 2024, at £3,300 a month.
The tenant told the i newspaper that she then received an email in November telling her the lease would not be renewed this year, and that she and her housemates would need to move out, giving them four months' notice to March.
The current occupants reportedly moved in 'four to five months' ago on the increased terms. It is believed Ms Ali owns at least one other property in the area.
Ms Jackson said: 'It's an absolute joke. Trying to get that much money from renters is extortion. It's morally wrong that MPs can be landlords, especially in their own area. It's a conflict of interest.'
The now ex-minister's actions would be illegal under long-awaited legislation to improve renters' rights which is in its final stages after passing through the House of Lords last month.
Sources close to Ms Ali told the i the tenants were offered a rolling contract while the house was up for sale and that it only went back on the rental market when no buyer emerged.
Fourth Labour minister to leave their role over personal matter
Ms Ali is the fourth Labour minister to have left their role over a personal matter.
Keir Starmer sacked Andrew Gwynne as health minister and suspended him from Labour in February after The Mail on Sunday exposed his racist and sexist messages, including one vile post saying he hoped a pensioner who didn't vote Labour would die before the next election.
Tulip Siddiq resigned as City minister in January, 26 days after the Daily Mail revealed she was facing a major corruption probe in Bangladesh. She denies any wrongdoing.
And Louise Haigh stepped down as Transport Secretary in November last year following media revelations that she had pleaded guilty to a fraud charge a decade ago.
The property is currently on the market for £894,995, down from an initial listing of £914,995 in November last year.
A listing on Rightmove advertising the property for rental in February last year said that it was 'very spacious', with 'off street parking for one to two cars'.
The home was also said to be 'close to amenities' with 'good transport links' and has a 'separate study'.
Ms Ali said in a letter to the Prime Minister that she had followed 'all relevant legal requirements' and said she 'took my responsibilities and duties seriously'.
She wrote: 'It has been the honour of my life to have played my part in first securing and then serving as part of this Labour Government. You have my continued commitment, loyalty and support.
'Further to recent reporting, I wanted to make it clear that at all times I have followed all relevant legal requirements. 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.'
Ms Ali has repeatedly cast herself as a voice for hard-up tenants, and has spoken out against private renters 'being exploited and discriminated against'.
And she championed the Renters' Rights Bill going through Parliament, which will ban landlords who evict tenants from re-listing a property for a higher rent until at least six months after the occupants have left.
Her actions would have been illegal under this law.
Tory leader Kemi Badenoch earlier led calls for Ms Ali to be sacked, telling the Daily Mail: 'I warned that Labour's Renters' Rights Bill was a mess.
Ms Ali's letter to the Prime Minister announcing her resignation as homelessness minister
'Now we find out the minister responsible is doing the opposite of what the Bill proposed – the homelessness minister is making people homeless. Rushanara Ali's hypocrisy is shameful.'
Conservative Party chairman Kevin Hollinrake added last night: '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.
'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 deserve so much better than the endless sleaze and scandal of this Labour Government.'
But one of Ms Ali's Government colleagues insisted she had not broken the law or any rules.
Energy minister Miatta Fahnbulleh was asked by Sky News whether the reports about Ms Ali were a 'good look', as the Government brings forward reforms to the rental sector aimed at helping tenants.
Ms Fahnbulleh told the broadcaster: 'She's been really clear that she's not broken any rules or any laws. She's chosen to resign, and that is a personal decision for her. What we care about as a Government is that we are levelling the playing field for renters.
'So we absolutely recognise that across the country... I hear stories all the time of people who are not getting a fair deal as a tenant.
'In the end, if you're a renter, you want security in the thing that is your home and so that is what the Renters' Rights Bill is trying to do. I think that is absolutely right.'
Tom Darling, director at the Renters' Reform Coalition, said of Ms Ali's resignation: 'This is the right decision. Her position was completely untenable given she was going to be required to defend the Government's legislation outlawing practices she herself had recently engaged in.
'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.'
It is understood the Prime Minister had 'full confidence' in the MP, who has represented Bethnal Green and Stepney since 2010, right up to the point she quit. She is an ally of his, having backed him in the Labour leadership race in 2020.
Ms Ali previously described how Labour would abolish no-fault evictions, designed to offer greater protections for tenants.
Last year, the minister said new laws would prevent 'private renters from being exploited and discriminated against'.
She told the Commons: 'The Renters' Rights Bill will give renters much greater security and stability so they can stay in their homes for longer.'
Responding to her resignation, Sir Keir said: 'Thank you for all you have done to deliver this Government's ambitious agenda.
'Your diligent work at the Ministry of Housing, Communities and Local Government, including your efforts to put in measures to repeal the Vagrancy Act, will have a significant impact.
'You have also begun the process of delivering landmark reforms including tackling harassment and intimidation in public life and encouraging more people to engage and participate in our democracy. This will leave a lasting legacy.
'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 Liberal Democrat spokesperson said the former minister had been 'staggeringly irresponsible'.
The spokesperson said: 'Rushanara Ali fundamentally misunderstood her role. Her job was to tackle homelessness, not to increase it.
'At a time of widespread political disillusionment, her actions were staggeringly irresponsible and only added insult to injury after years of delay for renters' rights reform under the Conservatives.
'The Prime Minister must appoint a new homelessness minister swiftly who will take the need to end homelessness once and for all seriously.'
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