1 year ago | 6 comments
Southwark Council tops the table for selective licensing fees, generating more than £23 million, as Rachel Reeves’ licensing error continues to make headlines.
Ms Reeves failed to obtain a selective licence for her family home, which she rented out in Southwark, and could be forced to repay thousands of pounds to her tenants.
While Ms Reeves blamed the letting agent, The Telegraph reports that the firm has remained tight-lipped over claims that it failed to advise her of the need to obtain a selective licence from Southwark Council.
According to The Telegraph, Southwark Council says tenants can apply for a rent repayment order if they have rented an unlicensed property, allowing them to reclaim up to 12 months’ rent.
For Ms Reeves’ property, rented at £3,200 per month, this could mean she is forced to repay her tenants £38,000.
The newspaper reports that in a letter, the opposition leader on the council, Victor Chamberlain, a Liberal Democrat councillor, urged the Labour-run council to assist Ms Reeves’ tenants “to recover any rent they are owed for this breach.”
The letter adds: “The local authority should pursue any further enforcement action that may be warranted, including prosecution.”
The Conservatives have also called for Southwark Council to prosecute Rachel Reeves immediately.
Shadow Foreign Secretary Dame Priti Patel told The Telegraph: “Labour-run Southwark Council boasts of ‘cracking down on’ and having a ‘zero tolerance approach to rogue landlords’ and has prosecuted landlords for renting unlicensed properties.
“Rachel Reeves has made thousands from renting without following the licensing laws. Southwark Council must now take action on Rachel Reeves and prosecute her.”
However, in a Downing Street press briefing, a spokesperson declined to answer whether Ms Reeves would resign if she were fined or prosecuted.
A Southwark Council spokesperson told Property118: “Southwark Council requires private landlords to acquire a selective license in order to rent out their homes if they live in specific areas. This is in order to protect tenants and ensure landlords are complying with housing requirements, providing safe, well-maintained homes.
“Selective licenses are acquired by sending applications to the council, which we then assess and approve subject to conditions.
“When we become aware of an unlicensed property, we issue a warning letter advising the landlord that they have 21 days to apply for a license. Enforcement action such as fines are reserved for those who do not apply within that time or where a property is found to be in an unsafe condition.
“We cannot comment on individual cases.”
According to proptech firm Kamma, councils have issued more than £20 million in fines for private rented sector offences, £13 million of which relate directly to licensing breaches.
Southwark council, where Ms Reeves’ property is located, tops the national league table, generating more than £23 million from licence fees as part of the £327 million collected nationwide.
Orla Shields, chief executive at Kamma, warns landlords and letting agents that the complexity of selective licensing rules means landlords and agents must be extra vigilant to avoid breaches.
She said: “If even front-bench members of the government can’t keep up with licensing, what chance does everyone else have?
“The rules are changing faster than ever, and with the Renters’ Rights Bill becoming law, the stakes for compliance have never been higher.”
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Member Since March 2022 - Comments: 363
11:36 AM, 31st October 2025, About 5 months ago
It is ultimately the landlord that carries the can for pretty much everything these days. If Rachel Reeves was aware that she needed a licence and did not check that the agent had obtained one she has been negligent. While as Landlords we might have some sympathy for her plight, the council should just treat her as an average Jane and not give her any sort of “Two Tier” dispensation. If they don’t it is kick in the teeth for the ordinary folk who may have slipped up in the same way and ended up heavily fined.
Member Since May 2017 - Comments: 763
11:41 AM, 31st October 2025, About 5 months ago
It the council gives 21 days grace, why would anyone get a licence – until they’re caught?
Member Since November 2017 - Comments: 261
11:42 AM, 31st October 2025, About 5 months ago
I’ve not bothered to keep track of this farce, as I envisage there will be many strings pulled behind the scene’s.
If the letting agents are at fault, which seems to have been suggested, wouldn’t she just sue them in turn?
Member Since May 2015 - Comments: 2190 - Articles: 2
1:09 PM, 31st October 2025, About 5 months ago
Reply to the comment left by Tim Rogers at 31/10/2025 – 11:42
She might, but I doubt she would win. Ultimately, the responsibility lies with the landlord. As a policymaker, she has no excuse.
Member Since May 2025 - Comments: 74
2:35 PM, 31st October 2025, About 5 months ago
Surely the real story here is Southwark council need to be investigated for making £23Million out of selective licencing fees.
Councils are NOT allowed to make a profit from SL fees but are from fines (hence why they need to fine Rachel).
I find it hard to believe that administration of this scheme costs £23Million in which case where has the money gone? They need to publish accounts for their selective licence scheme like all other councils with SL schemes. Sadly that wont happen as most councils never publish any accounts let alone ones for SL…..
If they didnt spend the money administering the scheme then they need to refund it back to the landlords who are now creditors.
So much for transparency and accountability in public office.
Member Since January 2015 - Comments: 1435 - Articles: 1
2:47 PM, 31st October 2025, About 5 months ago
Could be? She should be.
As someone else has reported on here 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.
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.
Apology to Starmer is not enough Reeves. You have got to resign. Simple
Alternatively councils can issue a civil financial penalty up to £30,000 (and keep the money) and treats this as one of the most heinous crimes possible.
We see dozens of small landlords every week fined often between £12,000 to £20,000 for this exact same criminal offence.
Member Since December 2019 - Comments: 18
3:50 PM, 31st October 2025, About 5 months ago
She should be fined. Pity she cannot be deported.
Yet another screw up involving Starmer The Reverse Midas of Downing Street.
Member Since May 2016 - Comments: 1570 - Articles: 16
6:18 PM, 31st October 2025, About 5 months ago
The focus is rightly on Reeves. We hear that she has told the Prime minister ( or so he says ) that she didn’t know she needed a license, yet emails have emerged where her / her husband ( unless they don’t talk to each other ! ) were in email ‘barter’ with the letting Agent over how much the Agents would charge to complete the License application. Apparently they quoted £900 which seems wasn’t agreeable to the Reeves family.
Either Rachel from Accounts has lied to the PM or 2TK has lied to the public.
Anyway, Southwark Labour-controlled Council who operate the Dulwich area have questions to answer.
The 2nd most senior member of government lives – lived on their area and they must be acutely aware of that.
When as everyone knew, that ‘our Rach’ moved from behind the counter at HBOS, into Number 11, Southwark should have been expecting to charge Double Council tax on her property. In examining this Council funding liability, they discover that other persons ( Reeves’ unlicensed tenants ) are paying the Council Tax, the 2+2 bells should be ringing about whether the property was Licensed and were the council collecting their licensing fees.
I have emailed the above in a complaint to Southward ( Southwark Council Southwark Council ) asking
1. why the above action wasn’t taken.
2. What actions have been taken against other unlicensed rental properties.
They responded promising a reply with 14 days.
Member Since May 2017 - Comments: 763
8:05 AM, 1st November 2025, About 5 months ago
Were the tenants a family or was it used as an HMO?
According to LandlordZONE Reeves wrote on Facebook recently: “I welcome Leeds City Council’s decision to expand their selective landlord licensing policy to include the Armley area.
“This scheme means private landlords in the area will be required by law to obtain a licence for any residential property they are seeking to let and must meet certain standards to ensure the property is safe and in a decent state of repair.”
So she didn’t know she needed a license? Really?
Member Since May 2016 - Comments: 1570 - Articles: 16
8:17 AM, 1st November 2025, About 5 months ago
Emails have emerged between her husband and Letting Agents, asking how much agents would charge to submit the application – there is no suggestion the Reeves ever paid the Agents to carry this out.
She ‘ KNEW ‘
She ‘ LIED ‘