The government’s homelessness minister reportedly raised the rent at her east London townhouse by £700 weeks after the previous tenants’ contract ended.
Rushanara 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 re-listed as a rental when a buyer could not be found, it is understood.
Ms Ali has previously criticised “private renters being exploited and discriminated against” when defending the government’s Renters Reform Bill, which will eliminate “no-fault” evictions, where landlords can end tenancies without a specific reason using Section 21 notice.
She said the legislation would “empower people to challenge unreasonable rent increases”.
The bill will also stop landlords who have terminated a tenancy to sell the property from re-listing it with higher rent until six months or more after the occupants vacated the premises.
Responding to the allegations, Tom Darling, director at the Renters’ Reform Coalition, said: “It’s mind-boggling that we have a homelessness minister who has just evicted four people in order to rake in more rent – something that will soon be illegal under the Renters’ Rights Bill her own department is bringing through parliament.
“The government are currently considering an amendment to the legislation from the House of Lords which reduces the ban on reletting after eviction from 12 months to 6 months.
“The government must remove this amendment, and at the very least Minister Ali must recuse herself from any discussions on this within government.”
Meanwhile, shadow housing secretary James Cleverly suggested she should resign, saying the allegations “would be an example of the most extreme hypocrisy and she should not have the job as homelessness minister”.
The Renters’ Rights Bill has received its third reading in the House of Lords having already been through the Commons.
A spokesperson for Ms Ali told The Independent: “Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.”
