Chancellor Rachel Reeves has admitted to “inadvertently” breaching housing regulations after renting out her family home in Southwark, south London, without obtaining the required local council licence.
The Labour chancellor, who moved into No 11 Downing Street last year following her party’s election victory, confirmed that she had failed to secure a £945 “selective licence” from Southwark Council before putting her property up for rent.
A spokesperson for Reeves said she had used a letting agency to manage the process and was unaware of the licensing requirement. “She had not been made aware of the licensing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence,” the spokesperson said.
The issue came to light after it was first reported by the *Daily Mail*. Reeves has since informed Prime Minister Keir Starmer, the independent adviser on ministerial standards, and the parliamentary commissioner for standards.
Conservative leader Kemi Badenoch demanded a “full investigation”, citing Starmer’s previous remarks that “lawbreakers can’t be lawmakers”. She posted on X: “If, as it appears, the chancellor has broken the law, then he will have to show that he has the backbone to act.”
Under Southwark Council rules, landlords in designated areas of the borough must obtain a “selective licence” before renting out their properties. Reeves’s spokesperson said neither she nor her lettings agency realised the home was in one of those areas.
Keir Starmer later confirmed that no further investigation would be necessary. In a letter to the chancellor, he wrote: “I have this evening consulted with my independent adviser on ministerial standards. He has advised me that in relation to your inadvertent failure to secure the appropriate licence for your rental property – and in light of your prompt action to rectify the position, including your apology – further investigation is not necessary.”
“I am satisfied that this matter can be drawn to a close following your apology,” Starmer added.
The four-bedroom home was reportedly advertised for £3,200 per month, according to the *Daily Mail* and the BBC, and Reeves has declared rental income on her parliamentary register of interests since September 2024.
The revelation comes at an awkward time for the chancellor as she prepares to deliver next month’s budget, with reports suggesting new property tax measures could be introduced.
In her first budget, Reeves increased stamp duty on buy-to-let and second homes from 3% to 5%, a move aimed at helping first-time buyers.
Liberal Democrat deputy leader Daisy Cooper said the disclosure “risks seriously undermining confidence in this government and its ability to focus on the urgent tasks at hand.”
