Labour’s homelessness minister has resigned from government after it was revealed she evicted four tenants from an east London townhouse — before hiking the rent by hundreds of pounds per month.
Rushanara Ali, 50, is said to have increased living costs on the four-bedroom property from £3,300 to £4,000, after telling the previous tenants their lease would not be renewed.
In a letter to Sir Keir Starmer, she insisted she had “at all times” followed “all legal requirements” and taken her responsibilities “seriously” but quit as to not be a “distraction”.
In response, the Prime Minister thanked Ms Ali for her “diligent work” at the Ministry of Housing, Communities and Local Government.
The occupants at the home, just a short distance from the Olympic Park, were reportedly handed a four months eviction notice last November.
Weeks after they had left the property, it had been re-listed with the rent £700 a month higher than before, the i reports.
A source close to the Labour MP for Bethnal Green and Stepney told the i the occupants were told their fixed-term tenancy would not be renewed and offered a rolling contract while the house was on the market, but chose to leave.
The property returned to the renters’ market for £700 more a month than the previous rent when a buyer could not be found.
Ms Ali has previously criticised “private renters being exploited”.
She has also said the Labour government would “empower people to challenge unreasonable rent increases”.
The government’s upcoming Renters’ Rights Bill will prevent landlords who have ended a tenancy to sell a property from then re-listing it with higher rent until six months or more after its occupants have left.
The property is listed for sale at just under £900,000 and has access to a shared gym and swimming pool.
A former tenant of the east London property, Laura Jackson, told the i paper: “It’s an absolute joke. Trying to get that much money from renters is extortion”.
The occupants were also told by letting agencies that they would be charged £2,400 for the home to be repainted and professionally cleaned.
Landlords are prevented from charging tenants for professional cleaning under the Tenant Fees Act 2019.
It is understood the charges were dropped after Ms Ali was told of them.
Shadow housing secretary James Cleverley said the allegations “would be an example of the most extreme hypocrisy and she should not have the job as homelessness minister”.
A spokesperson for Ms Ali said: “Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.”
