By Tony O’Reilly-
Prime Minister Sir Keir Starmer announced publicly that Chancellor Rachel Reeves will face no further disciplinary action following her “inadvertent failure” to obtain a rental licence for her south London family home. This definitive statement from Downing Street aims to draw a final, firm line under the controversial Rachel Reeves Rental Row, allowing the Chancellor to fully focus on preparing her crucial budget scheduled for November 26.
Reeves had faced mounting pressure to fully explain the circumstances surrounding the property, which she rented out last year after moving into Number 11 Downing Street. Conservative leader Kemi Badenoch had called vociferously for her resignation or immediate removal from the post. However, the Prime Minister’s decision follows a full review of correspondence that clarifies the situation.
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In a formal letter released late Thursday night, the Prime Minister confirmed that newly shared correspondence from the Chancellor shows her husband received explicit assurance from the couple’s estate agents. The agents, according to the emails, had explicitly promised “that they would apply for a licence on his behalf.” Sir Keir admitted it was “regrettable” he had not been informed about this crucial correspondence sooner.
Reeves’ initial letter sent to him on Wednesday had suggested she was simply “not aware that a licence was necessary.” The Chancellor’s second, follow-up letter, sent on Thursday, then informed the Prime Minister that her husband had unearthed the vital email chain detailing the letting agent’s promise to apply for the licence. Sir Keir acknowledged this swift clarification in his reply: “I understand that the relevant emails were only unearthed by your husband this morning, and that you have updated me as soon as possible.”
Ultimately, the Prime Minister labeled the entire incident an “inadvertent failure” and concluded he sees “no need” for any further disciplinary action regarding the Rachel Reeves Rental Row. Number 10 also publicly released advisory notes given to Sir Keir by his independent ethics adviser, Sir Laurie Magnus. Magnus explicitly stated in his advice that he found “no evidence of bad faith” on the Chancellor’s part throughout this affair.
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Reeves has fully apologised over the incident, saying, “I am sorry about this matter and accept full responsibility for it,” and specifically apologised for the delay in providing the full details of the advice her husband received. Downing Street has consistently backed Ms. Reeves ahead of her budget delivery on 26 November, hoping to end the Rachel Reeves Rental Row once and for all.
The owner of the involved lettings agency, Harvey and Wheeler, publicly released an apology to the Chancellor, offering a detailed explanation for the oversight. Gareth Martin, the owner, confirmed that a member of his staff had indeed promised to apply for the necessary licence. Martin explained that this crucial step was unfortunately never completed because the responsible staff member “suddenly resigned” just before the tenancy officially began. Martin expressed his deep regret over the inconvenience caused to his clients, stating they “would have been under the impression that a licence had been applied for.”
The housing row had loomed over Rachel Reeves. Pic: PA
The controversy originally erupted after a report in the Daily Mail revealed Ms. Reeves had mistakenly breached local council housing rules by failing to secure the required selective licence. She rented out the family residence in Dulwich, south London, after moving to the official Chancellor’s residence.
The Housing Act 2004 grants local councils the power to mandate that landlords register themselves in designated areas through a selective licensing scheme. Landlords must adhere to specific safety requirements to obtain the licence, including providing current gas certificates and ensuring adequate fire safety for furnishings. Councils often require the licence to be secured within 28 days of the property being rented out.
Southwark Council, where Reeves’ house is located, charges a fee of £900 for a five-year licence. Failure to secure this selective licence can result in a steep financial penalty of up to £30,000, or an unlimited fine if the case is taken to court. Serious and repeat offenders face potential prosecution with a possible sentence of up to five years, and they may be added to a public rogue landlords database. This incident, while officially closed by the Prime Minister, has certainly highlighted the complex legal requirements for all landlords in the UK.
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