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Crime and Punishment

Greedy Landlord: Minister Quits in Scandal

UK labour minister who criticized greedy landlords now accused of evicting tenants to raise rent by 700 pounds

Rushanara Ali
Rushanara Ali (Getty)

Rushanara Ali, Britain’s Minister for Homelessness and a prominent member of the Labour Party, resigned on Thursday evening following revelations that she removed tenants from a property she owns and later relisted it at a significantly higher price.

Ali, long known for her vocal criticism of exploitative landlords and unreasonable rent hikes, faced backlash after four tenants in a property she owns in East London received notice to vacate, allegedly because the home was going to be sold. But shortly after they left, the house was put back on the rental market with a seven hundred pound increase in monthly rent.

In a written resignation submitted to Prime Minister Keir Starmer, Ali stated that she complied with all relevant legal requirements but acknowledged that her continued presence in office could become a distraction from the government's work.

The incident sparked outrage. Conservative Party chairman Kevin Hollinrake said, “You cannot say one thing in public and do the opposite in private. This is appalling hypocrisy.”

According to reports, the tenants had originally been told their fixed-term lease would not be renewed and were given notice to prepare to leave. After the lease expired and the tenants left, the property was relisted for four thousand pounds, up from the previous three thousand three hundred.

A spokesperson for Ali said the house had been listed for sale and that the tenants were aware of the situation. The spokesperson also claimed the property was only returned to the rental market because it failed to sell. Still, many were unconvinced.

Shaean Smith, a spokesperson for London Renters Union, said the minister’s conduct was “completely unjustifiable” and called for her immediate resignation. Mary McRae, head of campaigns at Shelter UK, told the BBC that the Labour government must uphold its promises to protect renters.

"After months of delays and hesitation, the fact that the homelessness minister profited from a loophole the proposed Renters Reform Bill seeks to close is completely unacceptable,” she said.

Ali’s resignation also comes at a politically sensitive time for the Labour government. Just over a year after its landslide victory, recent polls suggest that the populist right-wing UK Reform Party led by Nigel Farage is now leading. Labour is projected to lose dozens of seats if elections were held today.

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