6 months ago | 7 comments
The Chancellor, Rachel Reeves, has referred herself to the government’s ethics watchdog after admitting she broke housing law by renting out her family home without a selective licence.
She admitted to the breach after questions were raised over her Dulwich property, which was listed for rent at £3,200 a month when she moved into Number 11 Downing Street with her family last year.
That’s despite Ms Reeves campaigning last year for selective licensing to be imposed on her Leeds constituency.
Southwark Council operates a selective licensing scheme that requires landlords in some areas, including Ms Reeves’s neighbourhood, to obtain a licence before letting their homes.
The council confirmed that her property fell within the designated zone.
Its website states: “You can be prosecuted or fined if you’re a landlord or managing agent for a property that needs a licence and do not get one.”
After inquiries by the Daily Mail, the Chancellor acknowledged she had not been aware of the rule and took immediate steps to apply for the licence.
Her spokesman said: “Since becoming Chancellor, Rachel Reeves has rented out her family home through a lettings agency.
“She had not been made aware of the licensing requirement, but as soon as it was brought to her attention, she took immediate action and has applied for the licence.”
He added that she had informed the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards ‘in the spirit of transparency’.
Conservative leader Kemi Badenoch described the revelations as ‘very serious’ and called for the Chancellor to be sacked.
She said: “If the Chancellor, who has spent months floating punishing tax hikes on family homes, has at the same time seemingly been profiting from illegally renting out her house, that would make her position extremely tenuous.
“The Prime Minister must launch a full investigation.”
Ms Badenoch added: “He once said, ‘lawmakers can’t be lawbreakers’.
“If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act.”
A Conservative party spokesperson today said: “Rachel Reeves has broken the law and broken the ministerial code, but Keir Starmer is too weak to sack her.
“While the Chancellor is planning tax hikes for millions of families across the country at the Budget, it’s one rule for the Chancellor and another for everyone else.”
The Chancellor apparently told the Prime Minister in a letter and also apologised to him.
However, Keir Starmer said an investigation was ‘not necessary’ after consulting with Sir Laurie Magnus, the independent ethics adviser.
The Prime Minister added: “I am satisfied that this matter can be drawn to a close following your apology.”
Editor’s Note from Phil Turtle at Landlord Licensing & Defence: Rachel Reeves has committed a strict liability crime under section 95 of the Housing Act 2004 (failure to licence a property) with unlimited fines if prosecuted in court. Alternatively, councils can issue a civil financial penalty up to £30,000 (and keep the money).
Councils treat this as one of the most heinous crimes possible and we see dozens of small landlords every week fined often between £12,000 to £20,000 for this exact same criminal offence.
Just like speeding, it is a strict liability crime and there is no defence of “I didn’t know” or my letting agent didn’t tell me. Councils are absolutely merciless in prosecuting small landlords because for them, fining landlords has become a major revenue stream.
Will Reeve’s apology get her off the hook? It certainly wouldn’t get any one else who rented out their former family home and didn’t licence it. Council’s see these landlords as low hanging fruit for their revenue.
And let’s be clear we see hundreds of examples each month where councils leave tenants in danger whilst they concentrate on getting their pound of flesh from the landlord. Note councils concentrate on small landlords not the real rogues because hey never actually get cash from the rogues!
The whole licensing and enforcement environment in private sector housing is toxic and corrupt. (“Dear Council: keep as much fine money as you can raise” was never going to lead to a fair system and has in fact become an effective land grab as councils take ever bigger slices of the equity of small landlords.)
Also councils go out of their way to persuade tenants to make a rent Repayment Order for 12-months rent back (shortly to be 24-months under the new Renters Reform Act.
Will the full merciless weight of the law with civil penalty fines and rent repayment orders bear down on our chancellor as it does on every other landlord who didn’t realise they needed a licence?
We wait with bated breath – and of course Landlord Licensing & Defence would be happy to defend Ms Reeves to the full extent the law allows!
As we do for every landlord what falls foul of the horrendous housing enforcement fiasco https://landlordsdefence.co.uk/pr10
For most landlords, this story underlines how easy it is to fall foul of licensing rules without even realising. Every council has its own schemes, boundaries, and exemptions. Some require licensing for all rented properties, others only within selective zones, and each carries severe penalties for non-compliance.
The real lesson here is that ignorance is never accepted as an excuse. Whether you use a letting agent or manage properties yourself, the legal duty sits squarely with the landlord. Councils now rely on licensing income to fund enforcement teams, so the chances of being caught are higher than ever.
This is why we advise landlords to treat compliance checks as part of their annual maintenance routine. Verify whether your properties sit inside new or extended licensing areas, confirm that your agent’s details and licences are current, and keep every confirmation on file. One missing certificate can quickly snowball into a fine, rent repayment order, and lasting reputational damage.
Property118’s consultants often help landlords take a broader view of compliance. For some, this means consolidating their portfolio into a company or LLP structure where governance and record-keeping are centralised. For others, it means refining how agents are appointed, instructed, and monitored. In every case, the goal is the same: preparation, control, and peace of mind.
When public opinion turns against landlords, the best defence is professionalism. Staying one step ahead of local authority schemes is not only self-protection, it’s part of proving that responsible landlords form the backbone of the UK housing market.
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
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Member Since August 2016 - Comments: 1190
10:06 PM, 30th October 2025, About 6 months ago
Reply to the comment left by graham mcauley at 30/10/2025 – 20:58
And remember she lost her job at HBOS for fiddling her expenses.
Member Since October 2021 - Comments: 30
10:22 PM, 30th October 2025, About 6 months ago
She should resign from her chair
This isn’t the first mistake
One rule for them and others pay 1000’s in fines and are made to feel like criminals…
She should be charged….!!
Member Since May 2015 - Comments: 2203 - Articles: 2
7:14 AM, 31st October 2025, About 6 months ago
Reply to the comment left by graham mcauley at 30/10/2025 – 20:58
“SHE SHOULD BE SACKED”
I disagree,
She MUST be sacked.
Member Since October 2022 - Comments: 58
10:06 AM, 31st October 2025, About 6 months ago
Of all the dubious antics of these lefties, this one has wound me up the most. Unless she is prosecuted to the full extent of the applicable law, then this is the clearest evidence yet of double standards. Please someone with some sway start a petition to call this out, to ensure that it is not swept under the carpet.
Member Since November 2017 - Comments: 263
11:54 AM, 31st October 2025, About 6 months ago
Two options:-
1). She’s too dumb to understand her responsibilities as a landlord.
2). She’s lied.
Either makes her unfit to hold office.
Member Since May 2014 - Comments: 620
12:11 PM, 31st October 2025, About 6 months ago
Reply to the comment left by Steve O’Dell at 31/10/2025 – 10:06
What also winds me up is the parade of Labour MP’s on TV saying that there is no way she would have known that she required a licence so she is not to blame.
Is this an excuse that we can all use going forward.
This does not pass the smell test!
Member Since May 2018 - Comments: 2025
12:25 PM, 31st October 2025, About 6 months ago
Reply to the comment left by Tim Rogers at 31/10/2025 – 11:54
Certainly there is no way that Rachel Reeves did not understand the role of selective licensing because she campaigned for it two years ago in her own constituency in Leeds. She can reasonably have been expected to check whether she needed a licence to rent out her own home, and make sure that somebody got one.
As for lying…I view this government as generally deceitful. They are not honest about the consequences of their policies and have never been honest. Let’s be honest…we all know that they are not going to build 1.5 million new homes by 2029 if they keep penalising the PRS. We all know that they are not going to grow the economy if they keep penalising employers for employing people. The government withheld the justice impact test of the Renters Rights Bill; they know it will create a mess in the courts but keep pretending something else will happen. This government consistently promises something but does something else. It pursues ideology at the expense of a diverse, healthy economy.
The government is pressurising landlords to upgrade properties to EPC band C or above and has introduced a Renters Rights Bill that is likely to penalise landlords, given the state of the courts. If anybody can afford to upgrade a property to EPC band C it’s a chancellor earning £160K+ per annum. And yet Rachel Reeves has been illegally renting out her own band E property in an area where selective licensing is in force and where she can reasonably have expected somebody to check this.
I don’t see Rachel Reeves as any more dishonest than the rest of the current government. I view this behaviour as a mixture of hypocrisy, negligence and incompetence. There might be a bit of cynicism in there as well “…spend tens of thousands upgrading my band E property to EPC band C? **** that!!!! we’re not going to be in the job that long.” So whilst that is possible it’s just speculation; it may just have been incompetence. And if Rachel Reeves did lie (also speculation) I don’t see her as much different to her other government colleagues.
Whilst I don’t really see Rachel Reeves as any more deceitful than the rest of the government I don’t have any doubt that there is a lot of “do as I say, don’t do as I do” going on here. As landlords we all know the extra costs being piled up on us that we have no option but to pass onto tenants, including pressure for EPC upgrades. Members of parliament who are also landlords need to take a good long hard look in the mirror and stop lying to the electorate about the real effects of their policies.
Member Since January 2020 - Comments: 93
2:07 PM, 31st October 2025, About 6 months ago
I’m wondering if she has registered with the ICO or has made an application to join the NRLA?
Member Since May 2018 - Comments: 17
2:12 PM, 31st October 2025, About 6 months ago
Or protected the deposit in time or at all? Or served the provable prescribed information?
Member Since May 2015 - Comments: 2203 - Articles: 2
2:45 PM, 31st October 2025, About 6 months ago
I thought the idea of the RRA was to eliminate amateur landlords? Rachel from accounts has certainly proved that she is an amateur.