Chancellor of the Exchequer Rachel Reeves has admitted breaching a housing regulation introduced by her own party’s local authority after she rented out her Dulwich home without the required landlord licence.
The Labour-run Southwark Council brought in the selective licensing scheme in 2021 to improve standards in private rented homes.
The scheme requires landlords in certain parts of the borough to obtain a licence before letting out their properties. Failing to do so is a criminal offence that can result in an unlimited fine or an order to repay up to 12 months’ rent.
Ms Reeves, who moved into No 11 Downing Street following Labour’s general election victory last year, began renting out her four-bedroom house in south-east London for around £3,200 a month. However, she did not apply for the required licence before doing so.
After the issue was reported, Ms Reeves wrote to Prime Minister Sir Keir Starmer to admit her error and apologise. She said the mistake was “inadvertent” and blamed her letting agent for failing to make her aware of the council’s licensing requirement.
“As soon as it was brought to my attention, we took immediate action and have applied for the licence,” Ms Reeves said in her letter. “This was an inadvertent mistake. I sincerely apologise for this error.”
Her spokesman said the Chancellor had now applied for the correct licence and had informed the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards.
Sir Keir Starmer described her apology as a “sufficient resolution” and said there would be no further investigation.
The Conservatives have called for Ms Reeves to be sacked, arguing that she has broken both housing law and the ministerial code. A party spokesman 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, it’s one rule for the Chancellor and another for everyone else.”
Kemi Badenoch, the Conservative Party leader, described the situation as “very serious”, saying that if the Chancellor has been profiting from unlawfully renting out her home, her position was “extremely tenuous”.
Southwark Council said the licensing scheme was introduced in 2021 to tackle poor standards and improve safety and quality in the borough’s private rented homes. A council spokesman confirmed that landlords are required to provide tenancy agreements and safety certificates when applying for a licence, which costs £900.
The council has not said whether it intends to pursue enforcement action against the Chancellor.
The episode adds to a string of controversies that have affected the Labour Government in recent months. Former deputy prime minister Angela Rayner resigned earlier this year over questions about her property and tax affairs, while other ministers have faced criticism for past conduct.
Ms Reeves has previously faced scrutiny over claims she misrepresented aspects of her career on her CV, allegations she has denied.
The Chancellor’s office declined to comment further on the matter.
