In a dramatic turn for Britain’s Labour government, Rushanara Ali, Under-Secretary for Homelessness and Rough Sleeping, has resigned following a controversy over her management of a rental property in east London. The resignation brings to the fore ongoing debates about housing policy, government integrity, and the challenges facing Prime Minister Keir Starmer’s administration.
The story began to unravel when The i Paper reported that Ali, who also serves as the Labour MP for Bethnal Green and Stepney, had evicted four tenants from her four-bedroom townhouse in east London before relisting the property at a significantly higher rent. The previous tenants, who had been paying £3,300 per month, were given four months’ notice in November 2024 that their lease would not be renewed. After their departure, the property was relisted at £4,000 per month—an increase of nearly £700, or €808, as detailed by BBC and The Guardian.
The timing of the move proved especially controversial. Ali has been an outspoken critic of exploitative practices in the private rental market, previously stating that Labour would work to “empower people to challenge unreasonable rent increases.” According to The Guardian, housing charities and members of opposition parties quickly accused her of hypocrisy, arguing that her actions undermined her own public statements and Labour’s policy agenda.
In her resignation letter to Prime Minister Keir Starmer, Ali defended her conduct, insisting, “I have followed all relevant legal requirements.” She added, “I believe I took my responsibilities and duties seriously, and the facts demonstrate this.” However, she acknowledged that the controversy had become a distraction, writing, “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.”
Ali also took the opportunity to highlight her achievements during her tenure. She wrote, “Working alongside the Deputy Prime Minister, we secured record investment in social and affordable housing, and nearly a billion pounds of funding to alleviate homelessness and rough sleeping.” She expressed pride in contributing to changes delivered by the government in the past year, including efforts to repeal the Vagrancy Act and encourage broader engagement in democracy.
The Labour government is currently preparing a Renters’ Rights Bill, set to introduce new protections for tenants. According to Al Jazeera, the legislation aims to end short notice “no-fault” evictions by landlords and ban them from re-listing a property for higher rent within six months after eviction. The bill is expected to come into force next year, reflecting a broader effort to address the housing crisis and protect renters from sudden displacement—an issue that has become one of the leading causes of homelessness in the UK.
Despite Ali’s insistence that she acted within the law, the political fallout was swift. Kevin Hollinrake, the Conservative Party chair and shadow housing secretary, was particularly vocal. “It is right that Rushanara Ali has now quit the government following our calls for her to go,” he said, according to The Independent. “Keir Starmer promised a government of integrity but has instead presided over a government of hypocrisy and self-service.” Hollinrake also argued that while Ali’s actions may not have been illegal, they were “unethical,” stating, “We can’t just say one thing and do another.”
Ali’s spokesperson attempted to clarify the situation, telling The Guardian that the tenants stayed for the entirety of their fixed-term contract and were informed they could remain on a rolling contract while the property was on the market. “This was not taken up and they decided to leave the property,” the spokesperson said. It is understood, as reported by The Independent, that the property was initially put up for sale, but when no buyer was found, it was relisted as a rental at the higher price.
Prime Minister Starmer responded to Ali’s resignation by thanking her for her “diligent work” at the Ministry of Housing, Communities and Local Government, noting it would have “a lasting impact.” He singled out her efforts to repeal the Vagrancy Act and her role in delivering landmark reforms to tackle harassment and intimidation in public life. Nevertheless, the resignation represents a blow to Starmer’s government, which has seen several ministers step down under pressure in recent months.
Ali is the fourth Labour minister to resign in recent times, following the departures of transport minister Louise Haigh, anticorruption minister Tulip Siddiq, and junior health minister Andrew Gwynne, each for separate reasons. The wave of resignations has added to the perception of instability within the government, coming just over a year after Labour’s landslide election victory.
Public confidence in the government appears to be wavering. A June 2025 survey by polling firm YouGov, cited by Al Jazeera, indicated that Reform UK, led by right-wing populist Nigel Farage, would win 271 seats in the House of Commons if an election were held now, compared to Labour’s 178 seats. The ruling party’s challenges are compounded by rising public frustration over the cost of living, housing shortages, and a perception that politicians are failing to live up to their promises.
The controversy also highlights the complexities of housing policy in the UK. The end of rental contracts is now one of the leading causes of homelessness, and with rents climbing in major cities like London, many tenants find themselves increasingly vulnerable. Ali’s case has become a lightning rod for broader debates about landlord conduct, the responsibilities of public officials, and the urgent need for reform in the rental sector.
While some commentators have pointed out that Ali’s actions were legal, others argue that public officials must be held to higher ethical standards, especially when their personal business interests intersect with their political responsibilities. The episode has reignited calls for clearer rules around MPs’ outside interests and greater transparency in property dealings by lawmakers.
With the Renters’ Rights Bill on the horizon and mounting pressure from both political opponents and housing advocates, the government faces a critical test in delivering on its promises to protect tenants and address homelessness. As the Labour administration seeks to regain its footing, the resignation of Rushanara Ali serves as a stark reminder of the challenges—and scrutiny—that come with governing in the spotlight.
For now, the government must navigate the fallout, reassure the public of its commitment to integrity, and push forward with reforms that address the root causes of the housing crisis. The coming months will reveal whether Labour can turn the page on this controversy and rebuild trust with the voters it pledged to serve.
