Rushanara Ali MP and London Mayor Sir Sadiq Khan

A government minister has resigned after claims she evicted tenants from a property she owned – then increased the rent by £700.

Homelessness minister Rushanara Ali was called “a hypocrite” after putting up the rent only weeks after the earlier tenants left.

In pushing through Government legislation, Ms Ali had said she would “challenge unreasonable” rent rises.

She wrote to the Prime Minister, Sir Keir Starmer, that she was resigning “with a heavy heart” and that her position had become a distraction to the Government.

Four tenants who rented a house owned by Ms Ali in east London were sent an email in November giving them four months’ notice that their lease would not be renewed.

The property was shortly back on the market – but the rent had jumped an extra £700 a month.

Housing charity Shelter said: “It beggars belief that she appeared to have profited from tactics a Government bill is set to outlaw.”

Labour has tabled legislation to ban landlords evicting tenants then increasing rents.

In her letter of resignation, Ms Ali said:

“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.”

“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.”

Sir Keir Starmer replied:

“Thank you for all you have done to deliver this Government’s ambitious agenda.

“I know you will continue to support the Government from the back benches and represent the best interests of your constituents in Bethnal Green and Stepney.”

Shadow Housing Secretary Sir James Cleverly said:

“I said that her actions were total hypocrisy and that she should go if the accusations were shown to be true.

“Labour’s position is always: ‘Do as I say, not do as I do.’

“They can’t get away with that when in government.”