Rushanara Ali Labour’s Homelessness Minister Quits After Slapping Tenants with £700 Rent Hike

Labour’s Hypocrisy Laid Bare: Homelessness Minister Quits After Evicting Tenants to Hike Rent by £700

In a scandal soaked with bitter irony, Rushanara Ali, Labour’s now-former Homelessness Minister, has resigned after evicting tenants from her London property only to relet it weeks later with a whopping £700-a-month rent increase.

Yes, you read that right. The person charged with tackling homelessness was, at the same time, profiting from a practice that pushes ordinary people closer to the streets.

Ali’s tenants were handed notice last November, told the house was going on the market for sale. But surprise, surprise, the property was never sold. Instead, it reappeared on the rental market with a new price tag: £4,000 a month, up from £3,300. A neat £700 rise. And this, from a Labour MP who just months ago was preaching about protecting renters from exploitation.

When this contradiction was exposed by The i newspaper, housing campaigners, political opponents, and Labour members alike were quick to denounce the hypocrisy. The pressure was too much to bear, even for a Starmer loyalist. By Wednesday evening, Ali had jumped before she was pushed, resigning “to avoid being a distraction.”

In her letter to the Labour leader, Ali insisted she had followed “all legal requirements” and taken her responsibilities “seriously.” But legality isn’t the issue here, it’s morality. It’s the chasm between what Labour ministers say and what they actually do.

Sir Keir Starmer, ever the PR manager, thanked her for her “diligent work” and expressed hope that she’d continue to support the government from the backbenches. No mention of renters. No apology. No reflection. Just the standard politician’s boilerplate.

One Rule for Them

Tory Chair Kevin Hollinrake jumped on the bandwagon, accusing Labour of “hypocrisy and self-service.” And while we rarely quote the Conservatives here, on this occasion the critique sticks.

This is the fourth minister to step down from Starmer’s government since the local elections. The moral high ground Labour once claimed under Corbyn is now a mudslide of careerist compromises and landlord MPs cashing in.

Even voices within Labour are sick of it. Jess Barnard of the NEC rightly asked: “MPs should not be landlords, and landlords should not be Labour MPs.” Meanwhile, Shelter’s Mairi MacRae called the saga “a damning reminder that the cards are fundamentally stacked against renters,” pointing to the very ‘fire-and-rehire’ evictions the upcoming Renters’ Reform Bill claims to address.

How can Labour claim to stand up for renters, when its ministers are behaving like the very landlords they’re supposed to regulate?

A Rotten Culture, Not Just One Minister

Let’s be clear: this isn’t just about Rushanara Ali. This is about the direction of the Labour Party under Keir Starmer, a Party that talks left while walking right. A Party that sells itself as a government-in-waiting for the people, but acts like a middle-management team for the landlord class.

Ali’s property, conveniently located in her Bethnal Green and Stepney constituency, is still on the market for £894,995, out of reach for anyone she’s supposed to represent. Even her own spokesperson couldn’t spin the facts: yes, the tenants were offered to stay, but on what terms? And yes, the letting agent demanded repair fees, which Ali only cancelled after the intervention became public.

Both London Renters Union and Acorn community union called for Ali to quit after the story came to light.

This isn’t just about breaking rules. It’s about breaking trust. And Starmer’s Labour is running out of both.

Paul Knaggs

Editor, founder, Labour Heartlands, Citizen journalist. 𝙁𝙧𝙚𝙚𝙗𝙤𝙧𝙣 𝙀𝙣𝙜𝙡𝙞𝙨𝙝 𝙍𝙖𝙙𝙞𝙘𝙖𝙡 𝙎𝙤𝙘𝙞𝙖𝙡𝙞𝙨𝙩. Fighting a constant struggle with dyslexia that’s overcome with a burning desire to speak out against the corrupt political system and the social injustices it creates. Advocate for Free speech and open, accountable, democracy. #GTTO