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 2021 - Comments: 307 - Articles: 1
10:35 AM, 30th October 2025, About 6 months ago
Not a good look for Labour in the week they celebrate breaking a tried and tested rental model which picked up the pieces and provided homes when the social sector failed to.
The week started with their custodial landlord arm evicting a convict from his accommodation, then compensating him to encourage him to leave (the country).
Then we get the RRA confirming that they haven’t a clue, with no sign of progress on the landlord and rental property databases (currently forecast for Spring 2027, despite work starting 2 years ago).
Now Rachel says, “Sorry, I didn’t know I should check what I need to do before I rent my property”. Maybe she asked Angela for advice? I say she should have come to iHowz. https://ihowz.uk/
It’s no wonder yesterday’s NLIS London show was the busiest the iHowz team has seen.
Phil has provided a great explanation of where things went wrong and what she should expect.
As I fill in my selective licence applications for Westminster’s selective licensing (from 27 November), I doubt I will be the only PRS landlord hoping her personal budget will be feel the impact of a RRO (rent repayment order) and fine.
She will be reaping the rewards of the government’s decision to remove oversight of councils introducing licensing schemes (which was intended to address exceptional issues with housing standards – not fund compliance).
Waiting to see what action Southwark and her tenants take.
Member Since August 2016 - Comments: 1190
10:37 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Martin Hicks at 30/10/2025 – 10:18
What are the chances of the agent being unaware of the licensing requirement ? In reality it’s zero. We need to find out who the agent was. But Starmer has said there’s no need for an investigation.
Member Since February 2022 - Comments: 206
10:46 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Martin Hicks at 10:18
I agree but the point is she is running the country’s finances, this just shows how incompetent the Labour party are. There should be a guideline for all MPs if you rent out your family home these are the steps you need to take. This is then checked and double checked by professionals. This is very common practice and been around for decades, there is no excuse at this level. Independent MP yea maybe but cabinet MP of ruling party needs to be whiter than white. She needs to pay a large fine just like anyone else.
Member Since July 2013 - Comments: 2002 - Articles: 21
10:49 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Dylan Morris at 30/10/2025 – 10:29
“I find it hard to believable that a letting agent (presumably local) would have no knowledge about selective licensing in their area. I suspect an agent wasn’t involved here.”
I hold no brief for the Chancellor and believe she is doing a lousy job and is about to make matters much worse with her Budget next month. However, I don’t think Reeves was lying about using an agent. Many letting agents are not up to speed on the law.
Pace Kate Gould, the fact that something is on a Council’s website doesn’t mean everyone knows about it. If an agent says they will deal with a matter it is reasonable to expect that they will do so.
Member Since August 2016 - Comments: 1190
10:50 AM, 30th October 2025, About 6 months ago
I wouldn’t be surprised if she’s lying and she didn’t actually use an agent. Seems most likely scenario. Same with Raynor she lied about taking legal advice when she didn’t.
Member Since February 2022 - Comments: 206
10:54 AM, 30th October 2025, About 6 months ago
Don’t you just wish Southwark council had a Reform majority. They are labour run so my guess is they will issue a pathetic fine.
Member Since August 2016 - Comments: 1190
10:55 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Ian Narbeth at 10:49
That is why we need to get to the bottom of this matter and find out whether or not there was an agent and if so who it was. Why doesn’t the Daily Mail ask the tenant ? Or search Rightmove to see who advertised it ? Then we will know for certain whether an agent is involved. Be bloody great if she’s lying her head off.
Member Since June 2019 - Comments: 782
10:55 AM, 30th October 2025, About 6 months ago
If she gets away without a penalty, is there then the possibility of getting the fines revoked for everyone else.
Or does precident not work in civil law?
Member Since August 2016 - Comments: 1190
11:01 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Ian Narbeth at 30/10/2025 – 10:49
That is why we need to get to the bottom of this matter and find out whether or not there was an agent and if so who it was. Why doesn’t the Daily Mail ask the tenant ? Or search Rightmove to see who advertised it ? Then we will know for certain whether an agent is involved. Be bloody great is she’s lying her head off.
Member Since March 2024 - Comments: 281
11:03 AM, 30th October 2025, About 6 months ago
Reply to the comment left by Martin Hicks at 30/10/2025 – 10:18
How would anyone other than an agent be aware?!
The internet springs to mind. The local council website will obviously have a list of the Wards in which licensing applies.
First rule of using an agent, which I have done since 1990, is overseeing that they are competent by having a grasp of what the rules are. If you or I had been in the same position, make no mistake, we would still be in the Rogue landlord camp by those who wrote the legislation.
Yes, it may be harsh and some may say unfair, but the system is set up so that the landlord is responsible for the omission. It would be a private matter if they wanted to take some action regarding the position they have allegedly been put in.
If the legislation had been written so the agent was legally responsible, then fair enough as it would be the same rules for everyone to play by. We also don’t know what precisely was said or contracted between Reeves and her agent. Remember we were told by Rayner that her lack of tax compliance was the fault of the small female led Conveyancer based in Herne Bay Kent whom she happily threw under the bus – then it transpired that they had merely acted on the information Rayner supplied to them and Rayner had been advised to seek specialist advice by another party (which she failed to do).
After Rayner, then Mandelson it appears Starmer (a lawyer!) is on the wrong side of this too by brushing it away as if it were a minor thing over a matter of revenue collection – utterly inexcusable in the same week he has spoken in the most pejorative terms against millions of competent landlords that his RRB is meant to supposedly bring into line.