Homelessness minister Rushanara Ali resigns over housing scandal

Housing minister Rushanara Ali has resigned from the government following a scandal involving her role as a landlord.

The i Paper reported yesterday that Ali had thrown four tenants out of a townhouse she owned in east London before relisting the property for £700 more in rent.

A source close to Ali told the paper that the tenants were given the chance to stay on a rolling contract before the house was put up for sale, with the property relisted for rent when a buyer could not be found. A spokesperson for Ali also told the paper said that she had complied with all relevant legal requirements.

However, in a letter to the Prime Minister, she said: “It is clear that continuing my role will be a distraction from the ambitious work of the government.”

In response, Keir Starmer said in a letter: “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 consituents in Bethnal Green and Stepney.”

Ali had faced criticism from MPs across the Commons following the revelations, with Liverpool Riverside MP Kim Johnson taking to social media to say: “You can’t tackle a housing crisis while profiting from it. This does not set a good example.”

However, Ali was defended by Chancellor Rachel Reeves, who told the BBC: “I don’t know the details but Rushanara Ali seems to have done everything in accordance with the law.”

Rushanara Ali’s resignation letter in full

Dear Prime Minister,

It is with a heavy heart that I offer you my resignation as a minister. 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.

I am proud to have contributed to the change this government has delivered in the past year. 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. I am proud to have delivered this government’s election strategy, leading to legislation that will protect and enhance our democracy, with tough new laws on foreign donations, extending the vote to 16 and 17-year-olds, and tackling harassment and intimidation in public life.

More widely, I have been proud to serve in a government that isn investing in the NHS, rebuilding communities, securing trade deals, delivering jobs and growth, and rebuilding Britain’s place on the world satge. Under your leadership, Britain is showing international leadership on a range of issues, from standing up for Ukraine against Russian aggression, to working with our allies on developing a pathway to end the war in Gaza, including recognition of Palestinian statehood.

I want to thank you and the Deputy Prime Minister for your support and for giving me the opportunity to serve the British public in this Labour government.

Please be assured of my continued support.

Yours sincerely,

Rushanara Ali

Member of Parliament for Bethnal Green and Stepney

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