Reeves’ tenants could receive major payout after chancellor’s rent rule breach
Rachel Reeves’ tenants could face tens of thousands of pounds in compensation after the Chancellor failed to obtain the correct license to rent her family home.
Ms Reeves apologized and applied for the correct paperwork after it was revealed she had breached local council housing rules when renting the property in Dulwich, south London, after moving into 11 Downing Street on Wednesday.
Under Southwark Council rules the chancellor had to apply for a “selective” license when he rented his home. He said his failure to do so was an “inadvertent mistake.”
According to the council, tenants of “unlicensed property” will be able to apply for a rent refund if the property has been occupied in the last 12 months.
The order allows tenants to “claim up to 12 months of rent back from their landlord,” according to information on the council’s website.
The property was listed for £3,200 per month. Daily Mail The company, which first reported the story, means its tenants could seek around £40,000 if the conditions are met.
Southwark Council also details that “individuals may be prosecuted or fined if you are a landlord or managing agent of a property that requires a licence, and are not licensed.”
Independent Contacted Ms Reeves and Southwark Council for comment.
Days before the license was revealed, Ms Reeves had publicly backed plans for a licensing scheme for rental properties in Leeds, saying it would improve conditions for tenants.
Conservative leader Kevin Hollinrake reshared a tweet from the chancellor earlier this month saying he supported changes to the Armley area of the city.
“While many private landlords are operating properly, we know that many private tenants in Armley are facing problems with neglected housing,” he said.
It is understood the Chancellor accepted he needed to get the licence, but relied on the advice of a letting agent and was not told this was required.
It comes after No 10 repeatedly refused to say whether the chancellor had broken ministerial rules when he failed to obtain the licence.
Sir Keir Starmer is trying to draw a line under the row after consulting ethics adviser Sir Laurie Magnus, who decided against launching an investigation. Several senior government officials, including former deputy prime minister Angela Rayner, were forced to resign because of the scandals.
A Downing Street spokesman repeatedly refused to say whether standards rules had been breached or whether the Prime Minister or Sir Laurie had seen evidence of Ms Reeves’ version of events.
Faced with questions about the rule breach, the No 10 spokesman repeatedly pointed to the ministerial code, which states that an apology is a “sufficient remedy” in some cases.
In a letter to the prime minister on Wednesday evening, Ms Reeves said: “I sincerely apologize for this mistake and would be happy to answer your questions.”
He told her “This was an unintentional mistake. As soon as it was brought to my attention, we took immediate action and applied for a licence.”
In his response, Sir Keir said he had consulted independent counsel, adding: “In light of your inadvertent failure to obtain the appropriate license for your rental property and your prompt action to rectify the situation, including your apology, he has advised me that there is no need to investigate further.”
“An apology is a sufficient solution” in such cases, he added.
A spokesman for Ms Reeves said: “Rachel Reeves has rented her family home through a lettings agency since becoming chancellor.
“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 advisor on ministerial standards and the parliamentary commissioner for standards.”
The announcements come just weeks ahead of the chancellor’s long-awaited budget, which faces the prospect of tax rises to stabilize finances.
“I absolutely do not accept the way this has been framed,” the spokesman said on Thursday when it was put in the 10th position that the process was being resolved quickly to avoid upsetting the markets.
Meanwhile, Kemi Badenoch said the chancellor needed to “get on top of the paperwork” on the issue.
The Conservative Party leader said: “He’s the chancellor. He needs to be on top of the paperwork. He was aware of this legislation. I think there should be an investigation.”
“But the bottom line is Keir Starmer has repeatedly said that ‘those who break the law should not be vigilantes’, so if she is breaking the law then Keir Starmer should impose his own rules on her.”
