Rachel Reeves, the UK Chancellor, has apologised after it was revealed that her family home in Dulwich, South London, was rented out without the mandatory "selective" rental licence required by Southwark Council. The property was put on the rental market following the Labour Party's election victory last summer when Reeves and her family moved into No 11 Downing Street. The issue came to light when it was reported that the licence application had not been submitted, despite the letting agency initially offering to manage this on her behalf.

According to the estate agents involved, Harvey Wheeler, the responsibility to apply for the licence typically rests with the property owner. The agency claimed that although they had offered to assist with the application, a sudden resignation of a key staff member just before the tenancy began caused the oversight. Giles Martin, the agency’s owner, stated that all other necessary certificates for the property were in place at the time the rental started and that the licence would likely have been granted had the application been made. The agency has since apologised to Reeves and her husband for the error and any confusion caused, noting they deeply regret the situation as the clients had been under the impression that the licence was being processed.

Reeves herself acknowledged the oversight in a letter to Prime Minister Keir Starmer, taking full responsibility for not ensuring the licence was obtained and for not alerting the Prime Minister earlier to the issue. She expressed regret over the inadvertent error and confirmed that the application for the licence was made as soon as the mistake came to light. Southwark Council clarified that enforcement actions, such as fines, are typically reserved for landlords who ignore warnings or fail to apply within a specified timeframe. The council’s stance emphasises protecting tenants and ensuring landlords uphold housing standards, but it did not indicate any direct action against Reeves, suggesting that her prompt response helped mitigate potential penalties.

Despite calls from Conservative politicians, including leader Kemi Badenoch, who demanded a full investigation and even suggested Reeves should be removed from her post, Prime Minister Starmer has stood firmly behind the Chancellor. After consulting his independent ethics adviser, Sir Laurie Magnus, Starmer concluded that no further disciplinary action was necessary, stating that her apology and corrective steps were sufficient under the ministerial code. He expressed his confidence in Reeves as she faces significant challenges ahead, particularly with her forthcoming budget announcement scheduled for late November amid demanding economic circumstances.

This controversy amplifies existing pressures on Reeves, who is managing economic policy during a time marked by rising inflation and slowing growth. It follows a recent high-profile resignation within the Labour government related to breaches of ministerial rules, underscoring the heightened scrutiny government officials face regarding compliance and transparency. According to Reuters and AP reports, the revelation sparked criticism but did not prompt official investigations or sanctions, reflecting the government’s position that the matter had been addressed appropriately.

Ultimately, while the failure to secure the selective licence represents a procedural misstep, the swift acknowledgement and remedial action, combined with the estate agents’ admission of their part in the oversight, have contained the fallout. For now, it appears the incident will remain a cautionary episode rather than a crisis for Reeves or the Labour administration.

📌 Reference Map:

  • Paragraph 1 – [1] (Mirror), [4] (Evening Standard)
  • Paragraph 2 – [1] (Mirror), [5] (ITV)
  • Paragraph 3 – [1] (Mirror), [4] (Evening Standard)
  • Paragraph 4 – [1] (Mirror), [4] (Evening Standard), [3] (AP)
  • Paragraph 5 – [2] (Reuters), [3] (AP), [6] (Mortgage Strategy), [7] (ITV)
  • Paragraph 6 – [2] (Reuters), [3] (AP), [6] (Mortgage Strategy)

Source: Noah Wire Services