Rachel Reeves, the Chancellor, has acknowledged failing to secure a necessary rental licence for her south London home prior to its letting, which is a requirement under local laws. This admission comes as she is preparing to present the budget in less than a month. Reeves stated she was unaware of the licensing requirement, an oversight she apologized for, and was accepted by Labour leader Keir Starmer as a closed matter.
Recent developments revealed that emails showed the letting agent had informed her husband of the licensing requirement, and the agent did not apply for the licence after resigning before the tenancy began. Southwark council, where the property is located, has a selective licensing scheme that mandates landlords to obtain a licence, typically costing £945, and failing to secure this can lead to severe penalties, including fines or legal action.
Reeves has taken full responsibility for the lack of licensing and emphasized her immediate action to rectify the situation by applying for the necessary licence following the lapse. Despite her acknowledgment, the Conservative Party continues to call for an investigation, highlighting that Reeves did not follow up with the estate agent regarding the licence application.
In light of the error, questions remain surrounding the implications for Reeves’ position, especially considering criticisms from the opposition regarding her oversight in ensuring compliance with rental laws. Priti Patel and Kemi Badenoch have been particularly vocal about the need for accountability, emphasizing that Reeves and her husband ultimately bear responsibility for managing the property legally.
The situation has garnered attention due to its proximity to the upcoming budget presentation, and while Starmer has indicated that further investigation is unnecessary, the matter raises concerns about accountability and oversight within the government. The council has reassured that those who take corrective actions are less likely to face penalties.
Source: https://www.theguardian.com/politics/2025/oct/30/what-has-rachel-reeves-done-wrong-break-rules-licence-house