The rules are clear: “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.”
That is according to Southwark Council’s website, the area that covers chancellor Rachel Reeves’ family home, which was rented out last year without the relevant selective license.
Reeves has admitted renting out her Southwark family home without the necessary licence, breaking housing rules that clearly state landlords or managing agents can face prosecution or fines for non-compliance.
The chancellor reportedly informed prime minister Sir Keir Starmer, the independent ethics adviser, and parliament’s standards commissioner of the oversight.
In her defence, Reeves says she relied on a letting agency that failed to alert her that the property required a licence. She rented out the home after moving into a Downing Street flat following last year’s election win.
A spokesperson for Reeves described the situation as an “inadvertent mistake” and confirmed that she has now applied for the licence.
Opposition MPs have called on the prime minister to take action, while Reeves’ team emphasises her prompt response and transparency.
A spokesperson for Rachel Reeves said: “Since becoming chancellor Rachel Reeves has rented out her family home through a lettings agency.
“She had not been made aware of the licencing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence.
“This was an inadvertent mistake and in the spirit of transparency she has made the prime minister, the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards aware.”
Nick Watt, the political editor of Newsnight on BBC 2, told viewers last night that while the chancellor failed to follow the rules in her council by obtaining a license, it is his understanding that the rental agreement she signed will show that her letting agency stated that if a rental licence was needed, the letting agency would advise her.
With legal responsibility technically resting with the landlord, but the letting agency, which is yet to be named, also facing criticism for failing to advise her, the question remains: who is really at fault?
Both. But if you can’t trust your agent what is the darn point of hiring one? This is a terrible moment for the industry where our basic professionalism is found wanting.
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or did she use a cheap unqualified agent ?
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Qualifications only prove someone knew the rules long enough to write them on a piece of paper.
They don’t ensure people follow the rules, or that anyone checks.
The door has a lock — did anyone turn the key?
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A reverse image search will tell you the agent that advertised it – and presumably let it.
And if the agent missed the licensing here, they are hopefully auditing their other lets pdq
To add to the landlords /agents woes if the property is an unlicensed HMO, the tenant will presumably be able to reclaim up to 12 months paid rent under a Rent Repayment Order ?
At the reported rent of £ 3,200 pcm that’s up to £ 38,400
Ouch!
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We really can not have more disruption. The budget is round the corner and a new chancellor will not be great at this juncture – or will it? It certainly will allow ease for the U turns they seem to be planning.
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We are fooling ourselves if we believe Reeves is in charge of the economy. She’s just a very poor mouthpiece for the socialist ideologues in the Treasury. Starmer knows whoever replaces her (and him!) will be no better. Labour simply doesn’t have the ‘big beasts’ of the past who understood how business works and what makes people want to work and invest.
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You’re fooling yourself if you think they’re socialist
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Ignorance of the law is not an excuse I’m afraid. Especially not for someone in charge of the country’s income.
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Contract Law (Agency) 101:
Under the law of agency, the agent acts for and on behalf of the principal.
That duty isn’t optional — it’s fundamental.
The agent’s obligations include:
Acting within authority
Exercising reasonable skill, care, and diligence
Keeping the principal informed
Ensuring compliance with statutory requirements
If a property required a selective licence and one wasn’t obtained, the liability sits where the professional duty lies — with the agent.
The Chancellor’s case simply proves what every good agent already knows:
an agent must agent.
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Exactly. This has the potential to undermine our industry albeit it is a shame the pressure to break this story was greater than the need to identify the true culprit. Such is the media these days.
Similarly, while far removed from being an apologist for our non-sweating Prince, has anyone yet seen an objective assessment of the price paid by way of the initial premium (reportedly over £1m) and the commitment of immediate expenditure (c. £7.5 m) for Royal Lodge ? These were the “commercial” terms agreed whilst he was still a working royal (now often described as “soft terms” for such royals) and we have yet to see the presumably substantial maintenance costs incurred over and above the peppercorn rent, albeit reported to be c. £2.5m. Beyond peppercorn rent, how much of this detail reached the redtops ?
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If she were to resign, I wonder if she realises that it might now be a long time before she can now get her house back under RR Act?
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That made me LOL
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its not a problem she will simply rent from another MP who has moved out of their actual home in London to rent from another MP who has moved out of theirs. … and she will then claim the rent as an expense
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Oooh, the irony, if that were to happen!
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If this is brushed under the carpet, it sets a precedent for all landlords. Personally, I don’t believe the agent failed to inform her — and in any case, the ultimate responsibility lies with the landlord, not the agent. It’s similar to how councils tell tenants to “stay put” when served with a Section 21 notice, then later claim they were merely explaining the rules. Yet when landlords endure extra court fees and bailiff costs as a result, it’s the councils who are to blame — but they dodge responsibility by saying they didn’t tell the tenants to stay put, they just advised them what would happen if they did.
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The Agent should have notified the owner however either party (landlord or agent) is responsible to be prosecuted so the owner should know better especially as she is the Chancellor. Maybe there was a black hole in the website that she couldn’t find the relevant information,
How can you trust her if she doesn’t adhere to the rules !!!!!!!
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Perhaps the agent votes reform and tripped her up intentionally !!
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Doesn’t it all depend on whether Reeves had engaged her letting agent for management as well? I’ve let out properties in Westminster on and off for the last 35 years, sometimes on just a finders package and occasionally on a full management basis. Currently I’m letting my property out and employing my agent for full management. Thank God this time round it’s the later as otherwise I’d not have been aware of this new licence/ tax. Nonetheless this new charge is just another money grabbing scheme from WCC to fill their coffers and will do little if anything to stamp out rogue landlords. As a previous commenter said, it’s simply money for old rope!
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Rogue Landlords don’t register for Selective licensing….Ooop Rachael hasn’t.
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So I can’t post the photo but
Rachel Reeves o
• Admin
20 Oct •
I welcome Leeds City Council’s decision to expand their selective landlord licencing policy to include the Armley area.
While many private landlords operate in the right way, we know that lots of private tenants in Armley face problems with poorly maintained housing. This scheme means private landlords in the area will be required by law to obtain a licence for any residential property they are seeking to let and must meet certain standards to ensure the property is safe and in a decent state of repair.
Everyone deserves a safe and secure home. I look forward to continuing to work with the local community to improve conditions for renters.
LINK REMOVED – PROPERTY INDUSTRY EYE TERMS & CONDITIONS #6. Users posting comments on the site may not post direct hyperlinks to other websites and especially may not do so by use of their username. Users may not use comments to promote a service or business.
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As she claimed to have been a mortgage advisor at hbos surely the rules regarding buy to let’s were part of her training.
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Has she gone yet or will she resign after the Budget when she has to break their manifesto and raise income tax!
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The confected outrage – it would be funny, except that you probably can’t see it for yourselves…
Why do I say that? Because you might be wrong and because people make mistakes.
If this lapse is attributable directly to her then this would normally categorised as a “little” mistake. As a real person as well as being the Chancellor, Reeves is allowed to make a little mistake every now and again. She is, like the rest of us, only human.
However, as a truly busy person, I can imagine that she probably opted for the full management service rather than the let only package. In either case though, having been an agent for years, I would suggest that the agent had at least a duty of care and more likely the full responsibility to either organise the license or to halt the let until the landlord sorted the license.
Either way, her “little” mistake suddenly vanishes and all your outrage is wasted.
What you should instead concentrate your anger on is the screamingly LARGE mistakes made with OUR MONEY by these previous Chancellors of the Exchequer who all happen to be Tories:
* Jeremy Hunt – 2022 to 2024
* Kwasi Kwarteng – 2022
* Nadhim Zahawi – 2022
* Rishi Sunak – 2020 to 2022
* Sajid Javid – 2019 to 2020
* Philip Hammond – 2016 to 2019
* George Osborne – 2010 to 2016
Between them they made a serious of HUGE mistakes with OUR money which means that the country is now £2.8 TRILLION in debt costing the country £111billion a year in interest payments alone.
Now that’s something that you really should be angry about…
I can already feel the downvotes before I’ve hit the “post comment” button 🙂
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Are you Rachel in disguise?
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This all depends on the Terms of Business between the agent and the client.
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