The homelessness minister Rushanara Ali has resigned hours after she was accused of raising the rent at her east London townhouse by £700 per month just weeks after the previous tenants’ contract ended.
In a letter to the prime minister she said that remaining in the role would be “a distraction from the ambitious work of this government”.
Ms Ali had been facing calls to quit over her handling of the rental property, with shadow housing secretary Kevin Hollinrake accusing her of “staggering hypocrisy”.
In a letter to Sir Keir Starmer, the Labour MP insisted she had “at all times” followed “all legal requirements” and taken her responsibilities “seriously”.
But she added: “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.”
In response, the PM thanked Ms Ali for her “diligent work” at the Ministry of Housing, Communities and Local Government, saying it would have “a lasting impact”.
But her resignation will be a blow to the PM, just months after a Labour whip quit over the party’s welfare plans.
In February, the international development minister Anneliese Dodds also dramatically resigned in protest at Sir Keir’s decision to slash the UK’s foreign aid budget.
Louise Haigh also quit as transport secretary after admitting she was convicted for making a false report to police over a mobile phone being stolen 10 years ago.
Ms Ali has been accused of raising the rent on the property, which has four bedrooms, from £3,300 to £4,000 after the previous tenants vacated the property.
According to the i paper, the previous occupants were handed just four months’ notice last November, informing them that their lease would not be renewed.
And weeks after they had left, the house was reportedly once again up for rent – but for £700 more each month.
It is understood that Ms Ali – who is the Labour MP for Bethnal Green and Stepney – told the occupants their tenancy would not be renewed as the house was being put up for sale and were offered a rolling contract while the house was on the market, but chose to leave.
The property was then relisted as a rental when a buyer could not be found, it is understood.
Mr Hollinrake, who is also the Conservative Party chair, accused the prime minister of presiding over “a government of hypocrisy and self-service”.
He said: “It is right that Rushanara Ali has now quit the government following our calls for her to go … once again it’s one rule for Labour and one for everyone else.
“With a fourth minister now having to step down in disgrace, it is clear the British public deserve so much better than the endless sleaze and scandal of this Labour government.”
A Liberal Democrat spokesperson said: “Rushanara Ali fundamentally misunderstood her role. Her job was to tackle homelessness, not to increase it.
“At a time of widespread political disillusionment, her actions were staggeringly irresponsible and only added insult to injury after years of delay for renters’ rights reform under the Conservatives.
“The prime minister must appoint a new homelessness minister swiftly who will take the need to end homelessness once and for all seriously.”
