Landlords face flood of licensing complaints after Reeves’s rental debacle
Chancellor’s housing scandal This is expected to lead to a surge in rent refund claims from tenants who have breached landlord licensing rules, The Telegraph can reveal.
On Saturday, tenant rights groups reported a “significant increase” in calls from tenants who had just learned their homes were unlicensed.
Justice for Tenants, which supports tenants taking legal action, said calls for rent repayment orders had increased by 26 per cent since Wednesday. Rachel Reeves He was renting his house in south London without the correct paperwork.
Ms Reeves was unable to get a letting license when she put her family home in Dulwich (above) on the rental market last year when she moved into Number 11 Downing Street (main image) with her family – Harvey Wheeler
The group said Southwark, where the Chancellor’s estate is located, had received more calls than any other council.
Justice for Tenants outreach lead Al Mcclenahan said: Miss Reeves’ mistake “he had done more than anything else to raise awareness of licensing and Rent Repayment Orders”.
On its website, Southwark Council directs tenants concerned about illegal permits to contact Justice for Tenants, which has a 98 per cent success rate in providing compensation to tenants.
This increase in interest is expected to trigger a wave of costly lawsuits across the country, as tenants can demand up to a year’s rent due to license expiration.
Mr Mcclenahan said: “Our helpline services have seen a significant increase in the number of inquiries from tenants who discovered their landlord was unlicensed following Wednesday’s news about the Chancellor’s failure to license their property.”
“Many of the callers now correctly identified that their landlords were unlicensed, but they misunderstood the law as their property was not covered by the licensing rules.
“But many worried tenants live in areas with additional HMO or Selective Licensing, which means they can take action against their landlords and receive up to 12 months of rent back pay.”
It is understood the Chancellor applied for the license on Friday but could still face a rent repayment claim of around £40,000.
His home in Dulwich Wood is in a “selective licensing” zone, where homeowners must obtain a permit costing around £1,000. Renting without a home is a criminal offense punishable by an unlimited fine or a £30,000 fine, and tenants can claim back up to 12 months’ rent.
There is no indication at this time whether Ms. Reeves’ tenants intend to sue.
Delicious irony
Political opponents, including Sir James Cleverly, noted the irony of the Chancellor potentially “doing more for tenants’ rights rather than breaking the law”.
The shadow housing secretary pointed out that these comments came in the same week that the Government passed the Tenants’ Rights Bill, which he said “threatens to drive landlords out of the market, reduce choice and raise prices for tenants”.
Conservative chairman Kevin Hollinrake said the increased awareness of tenants’ rights resulting from the Chancellor’s mistake was probably unintentional.
“I don’t think that’s his point in not applying for or paying for a selective license, but it might benefit at least some people,” he said.
Kemi Badenoch, writing in The Telegraph, said she did not believe the Chancellor should resign for this mistake, describing it as “a minor accidental breach”.
But he added: “I confess to a bit of schadenfreude as I watch this Prime Minister, who has promised a ‘whiter than white’ Government, deal with vulgarities ranging from undeclared freeloading to stolen mobile phones and unpaid property taxes.
“Every week brings a new scandal and a new pious explanation for why it doesn’t count.”
Allegation of ignorance
Emails released on Thursday revealed Ms Reeves told her husband, Nicholas Joicey, a civil servant, that a license was required by the letting agency; this contradicted the initial claim that both were unaware of the legal requirement.
Maintaining this claim of ignorance may prove challenging given that Southwark, as it turned out, ran a major publicity campaign on landlord licences, involving billboards, bus adverts and notices in magazines aimed at residents.
Mrs. Reeves now claims that the letting agent, Harvey and Wheeler, mistakenly assured her husband that a license would be obtained later, an act of carelessness. The real estate agent has since apologized.
Despite these changing statements, both Sir Laurie Magnus, the Government’s independent adviser on ministerial interests, and the Prime Minister appear quick to act. The first “found no evidence of malicious intent” and the second said no further action would be taken.
Southwark Council also said enforcement decisions will only be taken if landlords fail to obtain a license within 21 days of receiving a warning notice or if the property is unsafe.
This approach appears to be contrary to measures taken by other local authorities.
On Friday opposition politicians called on Southwark Council to investigate the case, claiming Ms Reeves had “let out her property for thousands of pounds a month for over a year and every pound of that money was obtained illegally”.
In a joint letter to Labor council leader Sarah King, Lambeth and Southwark Conservatives said it would be “completely unacceptable” for Ms Reeves to be “released while others who have made less serious mistakes are released”.
