Emails reveal Rachel Reeves misled the Prime Minister over unlicensed rental home

It’s a controversy that doesn’t look like it’s going away after it was revealed that the Chancellor Rachel Reeves told the Prime Minister she was unaware that her Dulwich home needed a licence to be rented out.

However, emails released for ‘transparency’ show that the claim was untrue.

Conservatives are calling for Ms Reeves to be fired and have highlighted safety issues with the rented property which potentially breach Labour’s landlord safety laws.

The correspondence published by Downing Street reveals that the Chancellor’s husband, senior civil servant Nicholas Joicey, was informed multiple times that a licence was required before letting their £3,200-a-month property in south London.

In the emails, Mr Joicey asked the letting agent: “Can you confirm the cost of applying for the selective licence? Subject to this, I would be grateful if you could arrange these.”

The agent responded that it would cost £900 and could be handled once the tenants had moved in.

Revelations contradict the explanation

The revelations directly contradict Ms Reeves’ earlier claim to Sir Keir Starmer and ethics adviser Sir Laurie Magnus that neither she nor her husband knew a licence was necessary.

Southwark Council, which enforces selective licensing in some of its borough areas, confirmed that a licence is mandatory for landlords letting properties in Dulwich.

The Chancellor now faces a potential bill of £38,400, as tenants are entitled to claim back up to a year’s rent if a property is found to be unlicensed.

Ms Reeves had apologised, saying: “Regrettably, we were not aware that a licence was necessary, and so we did not obtain the licence before letting the property out. This was an inadvertent mistake.”

The government’s publishing of the emails has undermined that explanation.

No disciplinary action

Despite the growing pressure, Mr Starmer has decided against any disciplinary action.

He said Reeves would still deliver next month’s Budget, describing the issue as ‘regrettable’ but not malicious.

Sir Magnus agreed, saying Ms Reeves had not acted ‘in bad faith’.

The estate agency involved, Harvey & Wheeler of Dulwich, has apologised for its role, blaming the oversight on an employee who resigned before the tenancy began.

The firm said: “We failed to complete the process, which was our mistake.”

Called for constituency licensing

Conservative MPs have accused Ms Reeves of hypocrisy, pointing to her recent calls for tougher enforcement against landlords in her own Leeds constituency.

Just 10 days before the scandal broke, she had posted online that licensing schemes ‘improve conditions for renters’ and ensure homes are ‘safe and in a decent state of repair’.

Kemi Badenoch, the Tory leader, said: “This whole thing stinks.

“The Prime Minister needs to stop trying to cover this up, order a full investigation and, if Reeves has broken the law, grow a backbone and sack her.”

Situation is a ‘scandal’

Coun Victor Chamberlain, Southwark’s opposition leader, branded the situation ‘an absolute scandal’ and called for an investigation.

The council has said Ms Reeves now has 21 days to apply for and pay for the licence, though that will not prevent her tenants from pursuing a rent repayment order.

The Conservatives have gone further, alleging that photos of the property suggest potential safety failings.

Shadow housing secretary James Cleverly said: “First Rachel Reeves rented out her second home without a licence.

“Now it seems the property may fall foul of Labour’s own safety standards. The hypocrisy is staggering.”

Emails show license was needed

In her latest letter to the Prime Minister, Ms Reeves admitted that she and her husband later found correspondence confirming they had been informed about the need for a selective licence as far back as July 2024.

She wrote: “The letting agency and my husband have found correspondence confirming that the agent said a selective licence would be required.”

However, despite the explanation changing, Ms Reeves has acknowledged in writing that she failed to secure the required licence.

In doing so, the Chancellor broke housing law.