Lord John Sewel, 69, apologised for the "pain and embarrassment" he had caused after the Rupert Murdoch-owned Sun newspaper published pictures of him apparently wearing an orange bra as he chatted to two sex workers.
Scotland Yard has launched an investigation into his actions and raided his home at an exclusive block of flats near the Houses of Parliament on Monday night.
"I have today written to the clerk of the parliaments terminating my membership of the House of Lords," Sewel said in a statement. "I want to apologise for the pain and embarrassment I have caused."
On Monday, Prime Minister David Cameron questioned whether it would be "appropriate" for Sewel to continue approving laws amid the "very serious allegations" against him.
Sewel previously represented the main opposition centre-left Labour party in the House of Lords, the Houses of Parliament's unelected upper chamber.King Charles III To Set Out UK Government's To-Do List Asked If Pankaj Tripathi Wants To Join Politics, He Says, "Acting Ki Dukaan Achi Chal Rahi Hai" After Months Of Heated Campaigns, Trump, Biden Seek "Unity" Post Shooting Amid Huge Row, Karnataka Pauses Bill For Reservation In Private Sector Firms "Relocate To Vizag": Andhra Minister To IT Firms Amid Karnataka Quota Row "I Divorce You... Your Ex-Wife": Dubai Princess Dumps Husband In Insta Post Amid Huge Row, Karnataka Pauses Bill For Reservation In Private Sector Firms "Animal Cruelty": Abu Dhabi's First Owl Cafe Goes Viral, Internet Angry Madras High Court's Big Rebuke To Probe Agency In Illegal Sand Mining Row Track Latest News Live on NDTV.com and get news updates from India and around the world.