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Metro
2 days ago
- Business
- Metro
'The system is at a breaking point' Inside London's housing crisis
London's chronic housing crisis remains a hot topic after the resignation of the homelessness minister, Rushanara Ali. The MP resigned on Thursday after being accused of being a 'hypocrite' for raising the rent at her property by £700. Ali was accused of getting rid of four tenants in her townhouse in Bow, east London, before relisting the property for more money shortly after. Her office insisted the house was relisted for rent only after no buyer was found, and that the tenants were not evicted, but were given the option to stay while the property was up on the market. The previous tenants paid £3,300 for the home, and the rent was upped to £4,000 when it was relisted, the i Paper reported. The rent rise highlights the endemic issues plaguing people in London – unaffordable rents, lack of houses, homelessness, and damp and mould. Here is a roundup of what is going on with housing in London. Millions of people are renting from private landlords in the capital – around 2.7 million. And it is not a cheap affair as 37.9% of Londoners' income goes towards rent, figures from HomeLet show. It can be difficult to even find a rented home as properties are being snatched within minutes of adverts going up, with homes often going to those able to pay several months' worth of rent upfront which can decimate savings and lead to debt. People face a toxic cocktail of rising rents and fewer available homes, causing people to move out of London in droves. Only around 5% of privately rented homes in London are considered affordable for people in receipt of a housing benefit, according to Trust for London. Leaving London has become a dream for many young people trapped in expensive city living, but the exact number of people escaping is difficult to nail down. Outmigration from London reached 5.7% last year, according to analysis from real estate company Hamptons, which is still lower than the 8.2% peak in 2022, when almost 250,000 people are estimated to have left the capital. While the coronavirus pandemic saw a momentary fall in rent prices, the average rent in the capital has crept back up. Across the UK, nearly half of renters – around 1.7 million – are just one paycheque away from being homeless. Housing experts have warned that the crisis in London is spiralling out of control. The cost-of-living crisis has meant that many, especially those on low incomes or working in precarious jobs, have not been able to make ends meet, the charity Crisis has said. Latest figures from the Combined Homelessness and Information Network (CHAIN) reveal that 4,392 people slept rough in London between April and June this year – a 4% increase on the previous year. Rick Henderson, the chief executive of Homeless Link charity, which works directly with people experiencing homelessness, told Metro: 'It is appalling that so many lives are being destroyed by being pushed into rough sleeping, in London and across the country. This data is yet more proof that too many people are being trapped on the streets and that the current support system is at breaking point.' Thousands more people are also hidden homeless – instead of sleeping on the streets, they are living in temporary accommodation, hostels, sofa surfing or in overcrowded conditions, often out of sight. The Rushanara Ali story sparked thousands of reactions from Metro readers, with many calling her to be sacked or to resign, which Ali did so on Thursday. Liba Kaucky said it was 'quite right too' of her to resign, saying that the rent increase was 'an outrageous thing to do.' Christine Browne commented on the increased rent: 'I live in Bow, it's not worth that rent I can tell you that for nothing.' Jan Oons said: 'Maybe politicians should not be receiving any income other than their parliamentary wage to avoid any conflict of interests?' Stephen Locking said: 'Broken housing industry.' Stephen Wilde commented: 'We've the same problem Ireland, sitting politicians shouldn't be allowed be landlords. Conflict of interest in making big decisions will always be an issue.' Mike Dixon defended the MP, saying she 'wanted to sell the property with vacant possession: fair enough.' 'After not selling she has put it back out for rental. Perhaps she did not increase the rent of previous tenants and now was charging market rate.' Mark Coleman said: 'Nothing she did was illegal.' Rob Kavanagh said: 'She gave them four months notice and there's been no overreach of ministerial powers, nothing to see here. Leave the woman alone.' Sara Jane said: 'Well, reading the article she didn't make them homeless, they rented for a fixed term and were offered to stay longer which they declined. Whilst I don't think people like her are in the right job sounds like she didn't do anything wrong. Should private landlords exist, well, if they didn't and you can't afford a mortgage and can't get a council house, where else are you going to live other than the streets? It's a difficult one. The real issues are holiday homes not houses that are rented out.' Susan Marmon said: 'It's also that young renters or first time renters need guarantors that earn over £35,000 per year AND have at least 2 months rent available in cash! In some places it's even more! No wonder there's such a housing crisis.' London Councils, the group representing boroughs, estimated that over 183,000 Londoners, including 90,000 children, live in temporary hostels arranged by their council. The group warned that London councils are forecast to spend more than £900 million on homelessness services in 2024/25 – a £330 million overspend. London has as many a 12,500 hidden homeless people each night, the Greater London Authority estimates. Hidden homelessness is thought to disproportionately affect women and young people aged 16 to 25. Young LGBTQ+ people are at particular risk, with almost 136,000 people aged 16-24 homeless in 2022/23. Nearly a quarter of them are LGBTQ+, according to akt. Mayor of London Sadiq Khan has vowed to end rough sleeping in the capital by 2030. With £17 million from the government, he plans to refurbish 500 empty homes and launch a homelessness hubs to offer support to new rough sleepers. Meanwhile, the government has said it is taking urgent action to end homelessness after inheriting 'a serious housing crisis' from its predecessor. It is pumping £1 billion for councils' homelessness services across the country, with London boroughs given a funding uplift of £78 million. While Ali's spokesperson has insisted that the tenants were not evicted but were told their tenancy would not continue beyond the fixed-term, this is generally called a 'no fault eviction.' Mairi MacRae, the director of campaigns and policy at Shelter, said: 'Labour made a cast-iron manifesto commitment to 'immediately' ban no-fault evictions when they came to power. It beggars belief that after months of dither and delay, the government's own Homelessness Minister has profited from the underhand tactics the Renters' Rights Bill is meant to outlaw. 'This story serves as a damning reminder that the cards are fundamentally stacked against renters. Unscrupulous landlords cannot be allowed to continue the practice of 'fire and rehire' evictions, where they slap renters with a Section 21 only to hike up the rent a few months later and relet the property at a higher price. 'The government has the power to prevent this, and renters cannot wait any longer for meaningful change. It must make good on its manifesto commitment by passing the Renters' Rights Bill as soon as possible and name an implementation date so renters have certainty on when no-fault evictions will finally be relegated to the history books.' It means landlords do not need to prove that the tenants have done anything wrong to end a lease at its fixed-term end date by giving two months' notice to the occupants. Officially, it is known as a Section 21 notice. The Renters' Rights Bill, which will become law next year, is set to reform this by abolishing no-fault evictions. However, landlords' representatives have warned that the plans to scrap the Section 21 rule has caused many landlords to race to get possession of properties before the abolition, which could reduce the number of homes available to rent. While tenants in London might have a roof over their heads, it doesn't guarantee quality. Around 1.1 million private rented homes in the UK didn't meet the decent homes standard in 2022/23, according to the official English Housing Survey. This includes hazards like damp, mould and excessive cold. London housing activist Kwajo Tweneboa has been campaigning over standard homes plaguing tenants living in social housing after his own experience of living in 'slum conditions' with his dad who had cancer. Kwajo said he started posting on social media about the mould and damp-riddled conditions because 'I was angry to find out people were dying in their homes – from asthma, skin conditions and other illnesses related to damp, mould and disrepair,' he told the Guardian. He told New Statesman: 'It's hard to even describe some of the conditions I've seen people living in and subjected to. I've been in homes where I've had to cover my shoes with Sainsbury's bags before I went in because they were absolutely flooded with raw sewage… [I've seen] cockroaches, mice, ceilings collapsing, leaks… the list could go on. It's endless.' More and more private landlords have sold up and exited the sector, with analysis by Trust for London showing 45,000 rental homes were lost between 2021 and 2023. Ben Beadle, the chief executive of the National Residential Landlords Association, said: 'Private renters across London are facing the brunt of the housing crisis. The shortage of homes to rent is a one-way street toward higher rents and even less choice for tenants. 'London needs more of all types of housing, and that has to include homes for private rent. It's high time for policies that support investment in the homes renters desperately need.' There is also a lack of new homes, which the government has pledged to fix with 1.5 million new homes built in England by the next general election. London alone needs around 88,000 new homes over the next decade to meet demand, according to the City Hall. The Mayor said on Tuesday that work has started to build over 8,000 new homes, thanks to his land fund, five years ahead of the schedule. Deputy Prime Minister and Housing Secretary, Angela Rayner, said: 'We're facing a housing crisis which has stopped our young people from achieving the dream of homeownership, especially in London where there is a real demand to build the affordable homes we need. More Trending 'That's why we welcome the Mayor of London pushing ahead to build these homes, and we will continue to work hand-in-hand with him to deliver on our stretching target of 1.5 million homes through our Plan for Change.' The London skyline is changing rapidly with brand-new high-rise developments being built left, right and centre. However, many of the apartments will be out of reach for many people despite the London Plan mandating that 35% of all new housing developments have to be affordable. The affordability rule has been criticised for not being genuinely affordable. Shelter said that in 42% of local authorities in England, the 'so-called affordable rent is in fact unaffordable.' Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: What I Own: We paid £125,000 for our London houseboat — we charge our lodger £1,200 a month MORE: Banksy London Map shows where to see street artist's best graffiti MORE: The Minister for Homelessness' gaffe has proved MPs should never be landlords
Euronews
3 days ago
- Politics
- Euronews
UK homelessness minister resigns in eviction and rent price hike row
The UK's Under-Secretary for Homelessness and Rough Sleeping, Rushanara Ali, has resigned after a row erupted over claims she evicted tenants from a property she owned before increasing the rent. In a letter to British Prime Minister Keir Starmer, Ali said remaining in her role would be a "distraction from the ambitious work of this government." Ali announced her resignation following intense pressure from housing charities and members of opposition parties. She was accused of hypocrisy after it was revealed she evicted four tenants from her east London townhouse before relisting the property online with a rent increase of almost £700 (€808) a month. The story, which was first reported on by the i Paper, claimed one tenant first received an email in November telling her the lease would not be renewed and giving her four months' notice to leave the premises. The tenant then noticed that the property had been relisted from £3,300 (€3,861) to £4,000 (€4,680) a month. Ali had previously been outspoken about private renters being exploited in London, claiming that the Labour party would work to "empower people to challenged unreasonable rent increases." The controversy comes as Labour's Renter's Rights Bill, which is set to introduce new protections for tenants against such a move, is set to come into force next year. A spokesperson for the former minister claimed on Thursday that the tenants decided to leave the property voluntarily. 'The tenants stayed for the entirety of their fixed-term contract and were informed they could stay beyond the expiration of the fixed term while the property remained on the market, but this was not taken up and they decided to leave the property,' the spokesperson said, according to The Guardian. In her resignation letter, Ali said she "followed all relevant legal requirements." "I believe I took my responsibilities and duties seriously, and the facts demonstrate this," she added. Despite her claims, opposition politicians including Kevin Hollinrake, the Conservative party chair, celebrated her resignation. "It is right that Rushanara Ali has now quit the government following our calls for her to go," he said. "Keir Starmer promised a government of integrity but has instead presided over a government of hypocrisy and self-service." Starmer, in a letter issued by Downing Street, thanked Ali for her work to "deliver this Government's ambitious agenda" and singled out her "efforts to repeal the Vagrancy Act." Ali had "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," Starmer added.
Yahoo
4 days ago
- Politics
- Yahoo
Homelessness Minister Rushanara Ali quits over rent hike claims
Rushanara Ali has resigned as homelessness minister, Downing Street has confirmed. 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 moved out, the house in east London was 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". What are the rules about renting and eviction, and how are they changing? London's 'spiralling' housing crisis in numbers 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 was reduced in February by £20,000 and the i Paper said it was only re-listed as a rental because it had not sold. 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. 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. 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. "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." This is 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". Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.
STV News
4 days ago
- Politics
- STV News
Homelessness minister resigns after 'removing tenants and hiking rent'
Rushanara Ali has resigned as homelessness minister after reportedly hiking the rent on a property she owns in London by £700 a month weeks after the previous tenants' contract ended. In a letter to Prime Minister Sir Keir Starmer, she said that remaining in the role would be 'a distraction from the ambitious work of this government'. The i Paper claims that Ali told her tenants that she would not be renewing their lease and gave them four months to leave the property she owned in east London. Ali's property was then allegedly re-listed just weeks later, with a £700 increase on the rent, a rise of more than 20%. Kevin Hollinrake, the Conservative Party chairman, accused the minister of exploiting tenants and called for her to step down. 'I think it shows staggering hypocrisy. Rushanara Ali has been somebody who's obviously a Government minister in charge of homelessness. 'She's spoken out about exploiting tenants, about providing more protections to tenants. 'You can't say those things, then do the opposite in practice, as a landlord. She's got to resign.' He said the conduct appeared to be 'unethical, not illegal,' but 'we can't just say one thing and do another'. Prior to her resignation, a spokesperson for Ali said: 'Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.' The house, rented on a fixed-term contract, was put up for sale while the tenants were living there, and it was only re-listed as a rental because it had not sold, according to the i Paper. The report comes as the Renters' Rights Bill is nearing its journey through parliament, which is hoping to clamp down on what the government sees as unfair rental practices. The bill includes measures to ban landlords who end a tenancy to sell a property from re-listing it for six months, abolish fixed-term tenancies and ensure landlords give four months' notice if they want to sell their property. Tom Darling, director at the Renters' Reform Coalition, said: 'It's mind-boggling that we have a homelessness minister who has just evicted four people in order to rake in more rent – something that will soon be illegal under the Renters' Rights Bill her own department is bringing through Parliament. 'The government are currently considering an amendment to the legislation from the House of Lords which reduces the ban on re-letting after eviction from 12 months to six months. 'The government must remove this amendment, and at the very least, Minister Ali must recuse herself from any discussions on this within Government.' Chancellor Rachel Reeves said she 'didn't understand' why the Conservatives were calling for Ali to resign, saying: 'I don't know the details, but Rushanara Ali seems to have done everything in accordance with the law.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Daily Mirror
4 days ago
- Politics
- Daily Mirror
Homelessness minister Rushanara Ali resigns after 'ejecting tenants and hiking rent'
Labour's homelessness minister has resigned after reports claimed she hiked rent on a property she owns by hundreds of pounds just weeks after the previous tenants' contract ended. Four tenants who rented a house in east London from Rushanara Ali were sent an email last November saying their lease would not be renewed, which also gave them four months' notice to leave, the i Paper reported. Ms Ali's property was then re-listed with a £700 rent increase within weeks. Ali has now resigned saying in a letter to the Prime Minister that remaining in the role would be 'a distraction from the ambitious work of this Government'. She told the Prime Minister in a letter: '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.' Sir Keir Starmer told Ms Ali in a letter: '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.' Kevin Hollinrake, the Conservative party chairman, called for the minister to stand down, accusing her of 'staggering hypocrisy' over her handling of the rental property. A spokesperson for the minister previously said: 'Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.' The house, rented on a fixed-term contract, was put up for sale while the tenants were living there, and it was reportedly only re-listed as a rental because it had not sold. Speaking to the i Paper, Ms Ali's former tenant Laura Jackson said she was one of four tenants who received an email giving four months notice to leave the property, for which they collectively paid £3,300 in rent. Ms Jackson, a self-employed restaurant owner, said she saw the house re-listed weeks after she and her fellow tenants had left, but with a rent of around £4,000. The 33-year-old told the i Paper: 'It's an absolute joke. Trying to get that much money from renters is extortion.' She also said two letting companies managing the property for Ms Ali had attempted to charge £395 in cleaning fees and £2,000 to repaint the house when they left. The tenants successfully challenged this, as landlords are prohibited from charging tenants for professional cleaning, and from repainting costs unless serious damage has occurred. The minister's actions faced scrutiny from rental rights campaigners, as the Government seeks to clamp down on what it sees as unfair rental practices. The Renters' Rights Bill includes measures to ban landlords who end a tenancy to sell a property from re-listing it for six months. The Bill, which is nearing its end stages of scrutiny in Parliament, will also abolish fixed-term tenancies and ensure landlords give four months' notice if they want to sell their property. Ben Twomey, chief executive of Generation Rent, had described the allegations as 'shocking and a wake-up call to Government on the need to push ahead as quickly as possible to improve protections for renters'. He added: 'It is bad enough when any landlord turfs out their tenant to hike up the rent, or tries their luck with unfair claims on the deposit, but the minister responsible for homelessness knows only too well about the harm caused by this behaviour. These allegations highlight common practices that the Government can eradicate. 'The Renters' Rights Bill would ban landlords who evict tenants to sell the property from re-letting it within 12 months, to deter this kind of abuse – but unfortunately members of the House of Lords have voted to reduce this to six months. 'The Government can also use its review of the deposit protection system to penalise landlords who make exaggerated claims at the end of the tenancy.' Tom Darling, director at the Renters' Reform Coalition, also had said: 'It's mind-boggling that we have a homelessness minister who has just evicted four people in order to rake in more rent – something that will soon be illegal under the Renters' Rights Bill her own department is bringing through Parliament. 'The Government are currently considering an amendment to the legislation from the House of Lords which reduces the ban on re-letting after eviction from 12 months to six months. 'The Government must remove this amendment, and at the very least minister Ali must recuse herself from any discussions on this within Government.'
