Rachel Reeves could be forced to repay tenants as Southwark Council leads in licensing fees

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.

Forced to repay £38,000 to her tenants

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.

We issue a warning letter advising the landlord that they have 21 days to apply for a licence

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.”

The stakes for compliance have never been higher

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.”