Published by Global Banking & Finance Review®
Posted on August 7, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on Google
UK Homelessness Minister resigns over rent hike claims, sparking controversy for Labour. Ali insists on legal compliance amid criticism.
By Sachin Ravikumar
LONDON (Reuters) -Britain's minister for homelessness resigned late on Thursday after claims that she evicted tenants from a property she owns and then increased the rent by hundreds of pounds.
Rushanara Ali, a junior minister in the ministry of housing, said in her resignation letter to Prime Minister Keir Starmer that she had followed all the legal requirements "at all times" but that continuing in her role would have distracted from the work of the government.
Her exit represents an embarrassing blow for Starmer's Labour government, which trails Nigel Farage's right-wing Reform UK party in opinion polls just over a year after winning a landslide election victory.
Ali is the fourth Labour minister to step down under pressure following the exits of the transport minister, the anti-corruption minister and a junior health minister for separate reasons. Others have left the government over policy disagreements.
"Keir Starmer promised a government of integrity - but has instead presided over a government of hypocrisy and self-service," the opposition Conservative party's chairman Kevin Hollinrake said, adding it was right that Ali had quit.
Ali, who has spoken out previously against tenants being exploited and "unreasonable rent increases", evicted four tenants from her four-bedroom house in east London last year as the property was being sold, the i Paper reported on Wednesday.
Just weeks later, the property, which had a monthly rent of 3,300 pounds, was re-listed for 700 pounds more in rent after no buyer was found, and later rented out at the higher rent, the report added.
The end of rental contracts is considered one of the leading causes of homelessness in Britain, and the government is preparing a renters' rights bill which will ban landlords from re-listing a property for higher rent within six months after eviction.
"I wanted to make it clear that at all times I have followed all relevant legal requirements," Ali said in her letter to Starmer. "I believe I took my responsibilities and duties seriously, and the facts demonstrate this."
(Reporting by Sachin Ravikumar; Editing by Daniel Wallis)
Rushanara Ali resigned after claims that she evicted tenants from her property and subsequently increased the rent by hundreds of pounds.
In her resignation letter, Ali stated that she had followed all legal requirements at all times and took her responsibilities seriously.
Ali's resignation is an embarrassing blow for Prime Minister Keir Starmer's Labour government, which is currently trailing in opinion polls.
The end of rental contracts is a leading cause of homelessness in Britain, prompting the government to prepare a renters' rights bill.
Rushanara Ali is the fourth Labour minister to resign under pressure, following the exits of three other ministers for various reasons.
Explore more articles in the Headlines category
