A fresh controversy has emerged within Labour circles as another senior figure faces scrutiny over allegations of evicting tenants and dramatically increasing rent prices.
Lord Alli, a wealthy former investment banker and long-standing Labour donor, is at the centre of the claims. Over the past 20 years, he has contributed more than £500,000 to the party, making him one of Labour’s most influential financial backers.
According to The i newspaper, which recently exposed a similar incident involving former housing minister Rushanara Ali, Lord Alli’s north London townhouse was the focus of the dispute. A family of five, who had lived there for four years, were reportedly asked to leave after receiving a Section 21 eviction notice earlier this summer.
The tenants claim they were forced out despite wishing to remain in the property. Their departure marked the end of a long-term tenancy, during which they had paid £4,800 per month for the Islington home.
Soon after the eviction, the property reappeared on the rental market at a significantly higher price. Initially listed for £6,000 per month, it was later reduced to £5,850. Despite the drop, this was still well above what the previous tenants had been paying.
Reports suggest that new tenants eventually moved in at around £5,700 per month, meaning the rent was still increased by nearly £1,000 compared with the previous contract. This apparent “stopover eviction and relist” has sparked debate about the fairness of such practices.
The timing of the case has intensified its political impact. Labour’s Renters Rights Bill is expected to pass into law shortly, ahead of the party’s annual conference. Among its measures is the ban on no-fault evictions like Section 21 notices, which critics argue are often used to raise rents by pushing out existing tenants.
Speaking to The i, the evicted family explained that they had offered to meet the higher rental price in order to stay in their home. However, their pleas were rejected by the property’s managing agent, who had served the eviction notice two months before the lease was due to expire.
Sources close to Lord Alli have insisted that he was not personally responsible for the decision. They maintain that the property was managed entirely by an estate agent, who handled both the eviction and the relisting process.
Land Registry records show that Lord Alli has owned the townhouse since the 1990s. The property, valued at around £3 million, does not carry a mortgage and has been described as his former residence rather than an investment.
A spokesperson for Lord Alli said he is not a commercial landlord and has never managed the property himself. They added: “This is his former home where one tenant was replaced with another for less money than the previous tenant offered, and at a rent below the market rate. Clearly this was not about money.”
The controversy mirrors a case involving Rushanara Ali, who stepped down from her government role after it was revealed that she evicted tenants from her east London property before relisting it at £700 more per month.
Lord Alli’s political links further add to the story’s significance. During the 2024 general election campaign, Prime Minister Sir Keir Starmer stayed in Alli’s £18 million penthouse flat. In addition, the Labour peer has provided gifts to senior figures, including clothing worth over £2,000 to Angela Rayner and accommodation at his New York residence.
Despite the uproar, it is important to note that none of Lord Alli’s actions were unlawful. However, critics argue that cases like this highlight the gap between political promises to protect renters and the behaviour of those closely connected to the party.
The unfolding story raises questions about Labour’s stance on housing, as it seeks to push forward with its renters’ reform agenda. With the Renters Rights Bill due soon, the spotlight will remain firmly on how the party addresses the balance between landlords’ interests and tenants’ rights.