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 May 2018 - Comments: 2025
12:27 PM, 30th October 2025, About 6 months ago
Reply to the comment left by Keith Wellburn at 30/10/2025 – 12:25
I thought that under the Renters Rights Bill under the first 12 months of the tenancy, Rachel would not be allowed to move back home or attempt to sell the property as the tenant will have a 12 month protected period (as long as they don’t breach any of the tenancy terms).
I don’t know what the situation is if the property has been rented out illegally, as is the situation here.
Member Since October 2019 - Comments: 400
12:34 PM, 30th October 2025, About 6 months ago
Correct me if I’m wrong, but as I’ve read it “ property that is rented out for more than £100,000 p,a. is exempt from Renters Rights Act” !!! Errr’
Member Since January 2022 - Comments: 267
12:44 PM, 30th October 2025, About 6 months ago
Reply to the comment left by Ian Narbeth at 30/10/2025 – 11:27
I am Assuming our MP’s, and ministers have some education and knowledge of the responsibilities to carry out their roles.
If such a person can claim they were unaware of a rule after they have been found out,
Is it not time for all the rules landlords have to follow be looked at and simplified..?
For someone with responsibilities to run the country, should be setting an example not taking advantage!
Member Since January 2022 - Comments: 267
12:48 PM, 30th October 2025, About 6 months ago
Reply to the comment left by Beaver at 30/10/2025 – 11:51
If The chancellor is sacked!
One assumes she and family will leave Downing Street, but will have no where to go as there is a tenant in her old home!
Can she go to the council and claim she is homeless?
Member Since February 2023 - Comments: 17
12:50 PM, 30th October 2025, About 6 months ago
The local authority holds the power to impose a fine of up to £30,000. Furthermore, the lack of licensing means current or previous tenants could potentially receive a Rent Repayment Order, with possible amounts reaching £38,000. Given the complexity of the Renters’ Rights Bill, even for property agents, it would be beneficial to implement a moratorium on fines to allow all industry participants adequate time to adjust to the new regulations.
While the lack of licensing constitutes a breach of law, local authorities should be bound by a code of conduct that prevents them from aggressively pursuing minor licensing infractions where no other materially serious breaches are present. Instead of linking these fines to council budgets—which encourages heavy-handed enforcement—any levied penalties should be pooled specifically for landlord grants dedicated to initiatives like EPC upgrades, thereby reducing the need for public funding.
Member Since March 2024 - Comments: 281
12:50 PM, 30th October 2025, About 6 months ago
Reply to the comment left by JeggNegg at 30/10/2025 – 12:48
There’s a 3 bed flat in Hove, the owner might appreciate some rent coming in now they have lost the job that paid the big mortgage..
Member Since March 2024 - Comments: 281
12:55 PM, 30th October 2025, About 6 months ago
Reply to the comment left by Richard AA at 30/10/2025 – 12:50
Didn’t the Labour government just make it easier for councils to bring in selective licensing without the need for the previous consultation process?
Pretty clear what the direction of travel is, just the Green Party are the only ones to have formally adopted it as policy -Abolish private landlords by ever increasing tax, regulations and fines.
Member Since April 2020 - Comments: 78 - Articles: 51
12:56 PM, 30th October 2025, About 6 months ago
Pe385
https://www.property118.com/member/?id=18745
What / where is the evidence it is an HMO?
Member Since February 2023 - Comments: 17
1:02 PM, 30th October 2025, About 6 months ago
In regards to the licensing of her property, selective licensing is indeed new in the area, but it came into effect Nov 2023. Reeves put the property up for rent in July 2024. It’s not rocket science, even as the homeowner you can check yourself on the council website or ring them up: https://www.southwark.gov.uk/sites/default/files/2024-11/Selective%20Licensing%20Final%20Designation%20Declaration%2014%20June%202023.pdf
Member Since August 2016 - Comments: 1190
1:12 PM, 30th October 2025, About 6 months ago
Reply to the comment left by Beaver at 30/10/2025 – 11:51
It’s going to be impossible in reality to rent your properties out for short periods or indeed any period when the RRB Act is in force. It will be illegal to ask or put pressure on your tenant to leave voluntarily. A Section 8 will need to be issued and you will need to go through the Courts. So what Reeves has done is not going to be practical going forward.