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Reeves tenants could get huge payout after breaching Chancellor’s rent rules

KANIKA SINGH RATHORE, 30/10/202530/10/2025

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Rachel Reeves‘Tenants could then line up for thousands of pounds The Chancellor failed to obtain the correct license to rent out her family home.

Ms. Reeves She apologized and applied for the correct paperwork after it emerged on Wednesday that she had broken local council housing rules by renting a property in Dulwich, south London, after living at 11 Downing Street.

Under Southwark Council rules, Chancellor must have applied for a “selective” license when renting out his home. He has said that his failure to do so was an “inadvertent mistake”.

According to the council, tenants of “unleased properties” may be able to apply for a rent repayment order if the property has been occupied in the last 12 months.

Chancellor Rachel Reeves has admitted not obtaining the necessary 'selective' rental license for her south London home (Stephen Russo/PA)

Chancellor Rachel Reeves has admitted not obtaining the necessary ‘selective’ rental license for her south London home (Stephen Russo/PA) ,pa wire,

According to the information available on the council’s website The order allows tenants to “recover up to 12 months of back rent from your landlord.”

According to the Daily Mail, which first reported the story, the property was listed at £3,200 a month, meaning its tenants could demand around £40,000 if requirements were met.

Independent Ms Reeves and Southwark Council have been contacted for comment.

Days before the revelations on licensing, Ms Reeves publicly supported plans for a licensing scheme for rental properties in Leeds, saying it would improve conditions for tenants.

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Conservative chairman Kevin Hollinrake re-shared a tweet from the chancellor earlier this month in which he supported changes to the Armley part of the city.

“Although many private landlords do the right thing, we know that too many private tenants in Armley face the problems of poorly maintained housing,” he posted.

Rachel Reeves with Sir Keir Starmer at the Labor Party conference (Stephen Russo/PA)

Rachel Reeves with Sir Keir Starmer at the Labor Party conference (Stephen Russo/PA) ,pa wire,

The Chancellor is understood to have accepted that he should have obtained a licence, but he relied on the advice of a letting agent and was not told it was necessary.

It came as Number 10 repeatedly refused to say whether the Chancellor had breached the ministerial code by failing to obtain the licence.

Sir keir starmer are trying to draw a line under the controversy after consulting their ethics adviser Sir Laurie Magnus, who decided not to launch an investigation. Several high-profile government figures, including former deputy Prime Minister Angela Rayner has had to step down as a result of the scandals.

A Downing Street spokesman repeatedly declined to say whether standard rules had been breached, or if Prime Minister Or Sir Laurie had seen evidence of Ms Reeves’s version of events.

Facing questions over rule-breaking, a No 10 spokesman repeatedly pointed to the ministerial code which states that an apology is “sufficient resolution” in some cases.

In a letter to the Prime Minister published on Wednesday evening, Ms Reeves said: “I sincerely apologize for this error and will be happy to answer any questions you may have.”

He told them, “It was an unintentional mistake. As soon as it was brought to my attention, we took immediate action and have applied for the license.”

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In his response, Sir Keir said he had consulted with his independent adviser, adding: “He has advised me that in relation to your unintentional failure to secure the appropriate license for your rental property – and in light of your prompt action to remedy the situation, including your apology – further investigation is not necessary.”

“An apology is the adequate solution in such cases,” he said.

A spokesman for Ms Reeves said: “Since becoming Chancellor, Rachel Reeves Has let out his family home through a lettings agency.

“He was not made aware of the need for a license, but as soon as it was brought to his attention, he took immediate action and has applied for the license.

“This was an unintentional mistake and in the spirit of transparency, they have informed the Prime Minister, the Independent Advisor on Ministerial Standards and the Parliamentary Commissioner for Standards.”

Revelations happen in a matter of weeks Ahead of the Chancellor’s long-awaited BudgetWhere it faces the prospect of tax increases to balance the books.

When put to No 10 on Thursday that the process had been resolved quickly to avoid upsetting the market, the spokesman said: “I don’t accept that framing at all.”

Meanwhile, Kemi Badenoch said the Chancellor needs to “stay on top of his paperwork” on the matter.

The Tory leader said: “He’s the Chancellor. He needs to be on top of his paperwork. He knew about this legislation. I think it should be investigated.

“But the main thing is that Keir Starmer has said over and over again, ‘Law breakers shouldn’t be law makers’, so if he’s broken the law then he should enforce his own rules on him.”

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