Rushanara Ali has resigned as homelessness minister, Downing Street has confirmed.
The move comes after she was accused of hypocrisy over the way she handled rent increases on a house she owns in east London.
There were calls for her to step down from homelessness charities and opposition politicians.
The row was sparked after Ali ended her tenants' fixed-term contract in order to sell up, but then re-listed the house for rent at a higher price within six months, which is something she is currently trying to outlaw under the Renters' Rights Bill.
The Renters' Reform Coalition, which represents private renters, said her resignation was "the right decision".
"Her position was completely untenable," said director Tom Darling.
"The government must get on now and end no-fault evictions urgently so that no more tenants are subject to the kind of behaviour Rushanara Ali engaged in."