Rachel Reeves fights on as estate agent takes blame in rent rules breach
Rachel Reeves took full responsibility for her failure to obtain the correct license to rent her South London property; because important new emails were forwarded to the prime minister and his ethics advisor.
Less than a month away from one of the most important budgets in recent history, the Chancellor finds himself under scrutiny for potentially breaking the law.
Ms Reeves was thrown a lifeline after her estate agent issued a statement admitting her mistake and apologizing.
An email from Harvey & Wheeler to Ms Reeves’ husband showed that the firm had offered to acquire the license on their behalf.
In a statement, the firm claimed Ms Reeves was “under the impression that a license application had been made”.
However, with final legal liability in the hands of landlords, the issue now falls to Sir Keir Starmer’s ethics adviser, Sir Laurie Magnus.
In a letter to the prime minister on Thursday, the chancellor wrote: “Today, the letting agency and my husband have found correspondence confirming that the letting agency told my husband on 17 July 2024 that a selective license would be required and that the agency agreed that it would apply for a license on our behalf.
“Today they have also confirmed that they have not taken this application forward, partly due to the departure of a member of staff from the organisation.
“However, as I said yesterday, I accept that it is our responsibility to obtain the license. I also take responsibility for not being able to find this information and bring it to your attention yesterday. As I said today, I apologize for this issue and accept full responsibility.”
Downing Street has tried to draw a line under the controversy surrounding the chancellor’s breach of local housing rules but the emergence of the messages has reignited scrutiny.
A No 10 spokesman said: “Following a review of emails sent and received by the chancellor’s wife, new information has emerged. This information has now been passed on to the chancellor and his independent adviser.”
The spokesman said it would be inappropriate to comment further at this time but added that Sir Keir still had full confidence in Ms Reeves. The Prime Minister is thought to have been made aware of the messages on Thursday.
The government has released an email exchange between the chancellor’s wife, Nicholas Joicey, and the leasing agency.
In an email dated 26 July 2024, Harvey & Wheeler explains that the license will cost £900, adding: “You will pay in two parts, i.e. £640 first, followed by the remaining £260.00 once the application has been processed.”
On 13 August Mr Joicey returns, albeit late, and says “yes please, go ahead” and arranges the licence.
In the latest email, sent later the same day, the representative says: “I will only do the Selective License when the new tenant moves in because I won’t need to do that yet.
“Right now we are just applying for a municipal license.”
The problem got worse for Ms Reeves after it was revealed she was campaigning in the Leeds constituency for the same rules she had just run afoul of.
Meanwhile, Southwark Council, where the license must be obtained, claimed that he may be liable to repay thousands of pounds of rent and may be subject to enforcement proceedings.
The council said it would only take enforcement action against landlords who did not apply for a license within 21 days of receiving a warning.
“When we become aware of an unlicensed property, we issue a warning letter informing the landlord that he or she has 21 days to apply for a licence; sanctions, such as fines, are reserved for those who fail to apply within this period or if the property is found to be in an unsafe condition.
“We cannot comment on individual cases.”
The property was listed for £3,200 per month. Daily MailThis means its tenants could seek around £40,000 if the requirements are met, the person who first reported the story said.
With opponents smelling blood, the Conservatives questioned the chancellor’s initial statement that he had not been informed he needed a rental license for his home.
A Conservative Party spokesman said: “Last night Rachel Reeves said she ‘was not informed of the licensing requirement.’ Today we learned that Reeves had been warned in writing by estate agents about the need for a licence.”
“The captured chancellor is now trying to pin the blame on the estate agents, but Reeves never contacted them to ensure the license had been applied for or to check whether the license had been granted.
“Regardless, according to the law, it is Reeves and her husband’s responsibility to ensure the license is granted. With more information coming to light every few hours, the prime minister needs to get his backbone and launch a proper investigation.”
The Conservatives argued that Section 95 of the Housing Act 2004 meant Ms Reeves was still ultimately responsible for obtaining the licence.
Meanwhile, colleagues have rallied around the beleaguered chancellor, who had lost deputy chancellor Angela Rayner in an administrative error over non-payment of stamp duty.
Business Secretary Peter Kyle said he had “complete confidence” in Rachel Reeves and praised her “work ethic”.
He said: “He is so focused on his role as one of the greatest public servants of our time.
“He’s not just focused on fixing the mess he inherited as chancellor from the previous administration, he’s working day and night to make sure we get our economy where it needs to be, creating the jobs, wealth and economic growth we need to go into the future.”
