The London borough were Rachel Reeves owns an unlicensed property has confirmed that it only fines landlords who do not respond to warning notices.
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The chancellor has been under fire over the past few days after news broke of her unlawfully letting out her family home without the correct licence.
Her letting agent has since apologised and admitted it was partly to blame for the mistake.
Under Southwark Council’s private sector housing enforcement policy 2021, Ms Reeves is theoretically liable to repay more than £38,000 in rent if a licence is not applied for within 21 days.
On Thursday afternoon, it emerged that the prime minister and his ethics advisor had been given “new information” relating to the paperwork for the property owned by Ms Reeves.
Number 10 published an email exchange between Ms Reeves’ husband Nick Joicey and Harvey & Wheeler, the couple’s letting agent, showing the agency did not obtain the necessary licence despite offering to do so.
In a statement, Gareth Martin, owner of Harvey & Wheeler, apologised for the “oversight” and said the licence was not applied for as the property manager resigned before the tenancy began.
“We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for,” the BBC reported.
In a letter from Ms Reeves, published alongside the email chain, she said she accepted that “it was our responsibility to secure the licence”, adding: “I also take responsibility for not finding this information yesterday [Wednesday 30 October] and bringing it to your attention.”
The property at the heart of the row is a four-bed house in Dulwich Wood that was previously Ms Reeves’ family home, but was put up for rent when the couple moved into 11 Downing Street.
After Ms Reeves admitted her mistake, opposition politicians in Southwark called on the council to pursue the “full enforcement measures available”.
However in a statement, Southwark Council said that when it becomes aware of an unlicensed property, it first issues a warning letter advising the landlord that they have 21 days to apply for a licence.
“Enforcement action such as fines are reserved for those who do not apply within that time or where a property is found to be in an unsafe condition,” a spokesperson for the council said.
“Southwark Council requires private landlords to acquire a selective licence in order to rent out their homes if they live in specific areas. This is in order to protect tenants and ensure landlords are complying with housing requirements, providing safe, well-maintained homes.
“Selective licences are acquired by sending applications to the council, which we then assess and approve subject to conditions.”
The chancellor has previously campaigned for the introduction of a selective licensing scheme in her Leeds constituency, and earlier this month she publicly backed plans for an expansion of the scheme in the Armley district.
“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,” she wrote on X.
According to Ms Reeves’ register of interests, the house in Southwark is co-owned, with rent paid jointly to Ms Reeves and her partner.
Ms Reeves is one of a number of Labour frontbenchers to fall foul of housing laws in recent months. In September, then-housing secretary and deputy prime minister Angela Rayner was forced to resign after it emerged she had underpaid stamp duty on her flat in Hove.
The month before, then-homelessness minister Rushanara Ali stood down following reports that she evicted tenants so she could increase the rent on her near-£1m town house in east London.
Ms Ali’s previous tenants claimed that the Labour MP for Bethnal Green and Stepney ended their fixed-term contract because the property was being sold. However, the town house was re-listed for rent within six months at a 20% mark-up. This is illegal under the recently passed Renters’ Rights Act.

