Labour's Homelessness Minister removed four tenants from a flat she owns in London - before hiking its rent by £700 per month.
Landlady Rushanara Ali has decried how private renters were being "exploited" and hailed how Labour would "empower people to challenge unreasonable rent increases" in the past.
But she upped the rent on her four-bedroom townhouse near London's Olympic Park from £3,300 to £4,000 every month, according to the i newspaper.
Ali owns two rental properties - and reports of the evictions come just months ahead of a new law to ban landlords relisting their properties for higher rent fewer than six months after tenants move out.
Now, the minister has been urged to resign.
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|Labour's Homelessness Minister removed four tenants from a flat she owns in London
Shadow Housing Secretary James Cleverly said the allegations against her "would be an example of the most extreme hypocrisy and that she should not have the job as Homelessness Minister".
But a source close to the Bethnal Green & Stepney MP said the tenants had been told their tenancy would not be renewed - and were offered the chance to stay on a rolling contract before the house was put up for sale.
The source added that Ali's townhouse was only relisted after she failed to find a buyer.
"Rushanara takes her responsibilities seriously and complied with all relevant legal requirements," a spokesman for the minister said.
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Shadow Housing Secretary James Cleverly said the allegations against her 'would be an example of the most extreme hypocrisy'
Labour voter Laura Jackson, 33, one of four people who rented the MP's property, was told in November that their lease would not be renewed, and was handed four months' notice to leave.
But mere weeks after leaving the property, Jackson revealed that the house had been put back up for rent for around £700 more than she was paying.
New tenants have sinced moved in, and told the i that they were paying the £4,000-per-month rates.
Jackson told the newspaper: "It's an absolute joke. Trying to get that much money from renters is extortion."
The townhouse was managed on Ali's behalf by two lettings firms.
When the tenants' contract ended, the agencies tried to charge them nearly £2,000 for the house to be repainted and £395 for professional cleaning.
Rushanara Ali's four-bedroom east London townhouse (pictured) saw its rent surge by £700 per month
Under the Tenant Fees Act 2019, landlords are barred from charging tenants for professional cleaning, as well as repaint a home unless "serious damage" has occurred.
Under the Act, minor scratches or scuffs are considered "reasonable wear and tear".
Jackson added: "It was really stressful. It was so much money - nearly £500 each! The property was not clean when we moved in; it was ridiculous and unfair."
After telling the letting firms the tenants knew their landlord was a Labour MP, the fees were mysteriously dropped, Jackson said.
"If we hadn't known the charges were unlawful, we would have had to pay them. It's exploitative.
"I just think it's morally wrong that MPs can be landlords, especially in their own area. It's a conflict of interest," she fumed.
The Ministry of Housing, Communities and Local Government, in which Ali serves as a minister, said the Government "will level the playing field between landlords and tenants, giving tenants greater security in their homes" through the Renters' Rights Bill.