Rushanara Ali Resigns: Impacts on Renters’ Rights Bill

Rushanara Ali has stepped down as homelessness minister, Downing Street has confirmed, following accusations of hypocrisy over her handling of rent increases on a property she owns in east London. The resignation came amid pressure from homelessness charities and opposition politicians calling for her to resign.

In her resignation letter to Prime Minister Sir Keir Starmer, Ali stated, “I have always complied with all relevant legal requirements,” but acknowledged that remaining in her role would distract from the government’s ambitious agenda. The controversy arose when Ali terminated a fixed-term tenancy contract to sell her east London property, only to re-list it for rent at a higher price within six months— a practice she is currently working to ban under the Renters’ Rights Bill.

According to a report by the i Paper, a former tenant received an email in November 2024 giving four months’ notice that the lease would not be renewed. After the tenant and three others vacated, the property was re-listed with a rent increase of £700 per month. A source close to Ali explained that the tenancy was ended to put the house on the market for £914,995, later reduced by £20,000 in February 2025. The property was re-listed for rent only after it failed to sell, with tenants offered the option to stay on a rolling basis during the sale period, which they declined.

In her letter, Ali wrote, “It is with deep regret that I tender my resignation as a minister. I have always taken my responsibilities seriously, and the facts reflect this. However, continuing in my role would detract from the government’s important work.” Prime Minister Starmer responded by thanking Ali for her “diligent” service, particularly her efforts to repeal the Vagrancy Act, and expressed confidence in her continued support from the backbenches for her Bethnal Green and Stepney constituents.

The Renters’ Rights Bill, nearing its final stages in Parliament, will prohibit landlords from re-listing a property for rent within six months of ending a tenancy for sale and will require four months’ notice for evictions once passed, likely next year. Siân Smith of the London Renters Union called Ali’s actions “indefensible,” citing a conflict of interest with the Bill. Tom Darling of the Renters’ Reform Coalition welcomed the resignation, stating Ali’s position was “untenable” given her involvement in practices the legislation aims to outlaw. He urged the government to prioritise ending no-fault evictions.

Opposition figures, including Tory Party chairman Kevin Hollinrake, labelled Ali’s actions as “staggering hypocrisy,” arguing her resignation was warranted. A Liberal Democrat spokesperson echoed this, stating, “Ali’s role was to address homelessness, not exacerbate it. Her actions were irresponsible, especially amid delays in renters’ rights reforms.”

This is not Ali’s first controversy. Last year, she relinquished part of her ministry’s portfolio related to building safety after attending a conference linked to a company criticised in the Grenfell inquiry, citing the importance of public perception.

Rules on Renting and Eviction in England:

Current Rules (as of August 2025):

Fixed-Term Tenancies: Most tenancies are assured shorthold tenancies (ASTs) with fixed terms, typically 6 or 12 months. After the fixed term, tenancies may become periodic (rolling) unless renewed or terminated.
Eviction Notices (Section 21): Landlords can issue a Section 21 “no-fault” eviction notice, requiring two months’ notice to end a tenancy without providing a reason. This applies during periodic tenancies or at the end of fixed-term contracts.
Section 8 Evictions: For issues like rent arrears or breaches of tenancy agreements, landlords can use Section 8, with notice periods varying (e.g., two weeks for serious rent arrears).
Legal Requirements: Landlords must provide tenants with a valid gas safety certificate, an Energy Performance Certificate (EPC), and deposit protection details. Failure to comply can invalidate eviction notices.
Rent Increases: During a fixed term, rent cannot be increased unless agreed in the contract. For periodic tenancies, landlords can propose increases, but tenants can challenge excessive hikes through a tribunal.

Changes Under the Renters’ Rights Bill:

Ban on No-Fault Evictions: The Bill aims to abolish Section 21 evictions, requiring landlords to provide a valid reason (e.g., selling the property or moving in themselves) under Section 8.
Extended Notice Periods: Once passed, landlords must give four months’ notice for evictions related to selling or moving in, compared to the current two months under Section 21.
Re-Letting Restrictions: Landlords who end a tenancy to sell will be prohibited from re-listing the property for rent within six months, addressing cases like Ali’s.
Timeline: The Bill is in its final parliamentary stages and is expected to take effect in 2026, though some measures may be phased in earlier.
Other Protections: The Bill introduces stronger tenant rights, such as the ability to challenge unreasonable rent increases and improved standards for rental properties.

London’s Housing Crisis in Numbers (2025):

Average Rent: £2,200 per month for a two-bedroom property, up 8% from 2024 (source: Rightmove).
Rent as Income Share: London tenants spend ~40% of their income on rent, compared to 30% nationally (source: ONS).
Homelessness: 170,000 people in temporary accommodation in London, a 10% rise since 2023 (source: Shelter).
Rental Supply: Available rental properties are down 15% since 2022, driving competition and price spikes (source: Zoopla).
Evictions: ~12,000 households faced no-fault evictions in London in 2024 (source: Ministry of Housing).
House Prices: The average London home price is £710,000, 12 times the average annual income (source: Land Registry).
Social Housing Waitlists: Over 300,000 households are on council housing waiting lists in London (source: London Councils).