Chancellor Rachel Reeves admits breaking housing rules by renting out home

Chancellor Rachel Reeves has admitted illegally renting her family’s home without a licence.

Reeves told Prime Minister Sir Keir Starmer, as well as the independent ethics adviser and Parliament’s standards commissioner, about the error, which was first reported in the Daily Mail.

Reeves rented his home in Southwark after moving to a flat in Downing Street following his election victory last year.

The Chancellor is understood to have used a letting agency but was not told the house was in an area that required a “selective license” to rent the property.

Reeves’ spokesman said it was an “inadvertent mistake” and that he was now applying for a licence.

Conservative leader Kemi Badenoch called for a “full investigation”.

Badenoch said in a social media post that the prime minister must “demonstrate that he has the courage to take action” if the chancellor breaks the law.

The family home in London was rented out after Labor won the election in July 2024 for £3,200 a month.

It is in an area where Southwark Council requires private homeowners to hold a “selective licence”.

The council’s website states: “If you are a landlord or managing agent of a property that requires a licence, and you are not licensed, you may be prosecuted or fined.”

A spokesman for Rachel Reeves said: “Since becoming Chancellor, Rachel Reeves has rented her family home through a letting agency.

“He was not notified of the licensing requirement, but as soon as he was notified he immediately took action and applied for a licence.

“This was an inadvertent mistake and in the spirit of transparency he informed the prime minister, the Independent Adviser on Ministerial Standards and the Parliamentary Standards Commissioner.”

Writing on social media, Badenoch said Sir Keir “once said ‘MPs can’t break the law’. If the chancellor has broken the law, as it appears he does, then he will have to show he has the courage to act.” he said.