Southwark councillor resigns in selective licensing scandal weeks after Rachel Reeves controversy

A Labour councillor in charge of housing at Southwark council has resigned over breaking selective licensing rules, the very rules Chancellor Rachel Reeves also broke.

Councillor Michael Situ, admitted in a letter, two of his properties in Peckham did not have a selective licence.

The news comes after Chancellor Rachel Reeves broke the rules in the same council borough by renting out her family home without a selective licence.

Cllr Situ blamed his letting agent for selective licensing breach

As previously reported by Property118, Southwark council’s website says: “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 only three months in the job, Councillor Situ blamed his letting agent for the rule breach.

In a letter, reported by The London Evening Standard, to Southwark council leader Sarah King, Mr Situ writes: “In light of recent media scrutiny of Southwark’s housing licensing scheme, I took it upon myself to review my own arrangements as an owner of rental properties in the borough.

“I have a contractual arrangement with a local letting agent who manage properties on my behalf which sets out that they are responsible for letting, licensing and maintaining those homes. It has come to my attention that despite their contractual obligations, the letting agent has allowed these properties to be without the appropriate licences at various points and that the agent’s accounts have fallen into council tax arrears.

“Whilst this is a failure on behalf of my letting agent, these are my properties, and I take full responsibility for allowing this situation to arise. Moving forward, I have ensured that all necessary licences are being sought and that all obligations on the properties are met.

“We must lead with integrity and not give the impression we are anything other than determined to improve housing in our borough. I do not want my oversight to distract from this critical work, and therefore I will resign from cabinet with immediate effect.”

One rule for them and another for the rest of us

Despite fierce criticism, Ms Reeves did not resign over the breach and Southwark council confirmed that no action will be taken.

A council spokesperson previously said: “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.”

The Labour-run authority, which holds 48 of 63 council seats, added that when it becomes aware of an unlicensed property, it issues a warning letter giving the landlord 21 days to apply.

Critics have questioned why there appears to be one rule for some and another for others.

Southwark Liberal Democrat Group Leader Cllr Victor Chamberlain said: “Labour promised “zero tolerance” for rogue landlords. Yet when their own Chancellor knowingly failed to get a licence for more than a year, that zero tolerance became very forgiving. And now we learn one of the same councillors responsible for enforcing these rules was also a rule breaker.

“Labour have broken their promise time and again. They think it’s one rule for them and another for the rest of us.”

Shadow Housing Minister, David Simmonds, told The Telegraph: It beggars belief that Labour’s cabinet member for housing on Southwark council has resigned for failing to obtain the correct licence to rent out his property just weeks after the Rachel Reeves saga.

“This raises serious questions about why one standard applies to Cllr Situ, while another seems to apply to the Chancellor of the Exchequer.”

Property118 commercial reality check

Public rows about selective licensing always land hardest on ordinary landlords trying to run clean, compliant businesses. The environment feels uneven, yet the commercial advantage goes to landlords who build their own systems, keep clean records and stay fully prepared regardless of political noise.

What landlords should do next

Reassert ownership of compliance. Licensing schemes vary by borough and are rarely communicated with consistency. Build a master schedule that lists every requirement, renewal date and supporting document. A landlord-led process removes uncertainty and protects your position.

Create a clear internal workflow. Decide who checks licensing status, who gathers evidence and who signs off renewals inside your business. Defined roles prevent gaps, reduce stress and stop minor oversights turning into disruptive issues.

Document and audit readiness. Store digital copies of licences, inspections, safety certificates, tenancy files and correspondence in one organised system. Order proves diligence and speeds up any council interaction. A structured file system gives you confidence during scrutiny.

Advantage through professionalism

Responsible landlords remain the stabilising force in the rental sector. Structured systems, orderly records and disciplined planning cut through political noise and keep you positioned as a reliable operator in a shifting environment.