-
14/7/25 8:13 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Chancellor Rachel Reeves has apologised to the Prime Minister for failing to get a selective licence at her London rental property.
The Daily Mail reports that she was unaware that a licence was needed when renting out her family home in Dulwich for £3,200 a month after the general election. Her register of interests states she has received rental income since September 2024.
Southwark Council’s large selective licensing scheme was extended in 2023 to 19 of the borough’s 23 wards. Although a letting agent can be held responsible if they are operating on a property management basis, it’s ultimately up to the landlord to ensure their property has a licence. If they fail to do so, landlords can be liable for an unlimited fine on prosecution, or a fine of £30,000. Reeves’ tenant could also apply for a Rent Repayment Order.
“It's interesting to see the Chancellor trying to blame the agent which, as her advisors should know, doesn’t wash in Rent Repayment Order tribunals - compliance being the superior landlord’s responsibility to adhere to licensing, not the agent’s unless the two parties have signed a specific contract saying so,” says Sean Hooker, head of redress at Property Redress (pictured right).
The Chancellor has admitted the mistake and in a letter to the Prime Minister, she “sincerely” apologised for her “inadvertent error”. An exchange of letters between the PM and Ms Reeves revealed they had met to discuss the issue last night. She told Sir Keir: “As soon as it was brought to my attention, we took immediate action and have applied for the licence.”
In his reply, the Prime Minister said he had consulted his independent adviser Sir Laurie Magnus, and that further investigation was not necessary. Conservative leader Kemi Badenoch has called on him to “launch a full investigation” into the error.
Richard Bryce, co-founder of estate agent House Collective (pictured left), says it’s a major political own goal. “As Chancellor, with access to top advisers, she should be leading by example, not tripping over the same rules that frustrate everyone else. But her situation says it all. If even the Chancellor can’t navigate the system, what hope do ordinary landlords have?”
Reeves follows a number of Labour MPs who have come a cropper over housing recently. Housing Secretary Angela Rayner was forced to resign after admitting she underpaid stamp duty when buying a flat in Hove, while Jas Athwal, MP for Ilford South, resigned as Redbridge Council leader after an investigation revealed his flats – where tenants complained of mould - did not have the correct property licences. Former homelessness minister Rushanara Ali resigned as a minister after reports surfaced that she had evicted tenants from one of her properties and then increased the rent significantly.
Tags:
Comments