The Prime Minister has reopened an inquiry into Chancellor Rachel Reeves over questions surrounding the letting of her south London home, after “new information” was uncovered in a review of emails sent and received by her husband.
A Downing Street spokesperson said: “Following a review of emails sent and received by the Chancellor’s husband, new information has come to light.
“This has now been passed to the Prime Minister and his independent adviser. It would be inappropriate to comment further.”
They added that the Prime Minister has “full confidence” in Reeves, who is due to deliver her Budget on 26 November, and confirmed it would be for the independent adviser to decide whether a full investigation has now been launched.
The development came less than 24 hours after Reeves admitted to “inadvertently” breaking housing regulations by renting out her south London property without the £945 licence required by Southwark Council.
The Chancellor reported the error to Keir Starmer and parliamentary ethics officers after it was first revealed by the Daily Mail.
She said she had rented out her family home in Camberwell after moving into No 11 Downing Street following Labour’s election victory last year.
Reeves confirmed that her family home, a four-bedroom property in Dulwich, has been rented through a letting agency for £3,200 a month since September 2024.
She stated she was made aware of her mistake only after being contacted by a newspaper for comment and that she “had not been made aware of the licensing requirement”.
In a letter to Starmer, Reeves wrote: “Regrettably, we were not aware that a licence was necessary, and so we did not obtain the licence before letting the property out.
“This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.”
Conservative leader Kemi Badenoch has demanded a “full investigation”, accusing Starmer of hypocrisy.
Writing on X last night, Badenoch quoted the Prime Minister’s previous remark that “lawbreakers can’t be lawmakers” and added: “If, as it appears, the Chancellor has broken the law, then he will have to show that he has the backbone to act.”
Under Southwark Council’s scheme, landlords in certain areas must obtain a “selective licence” before renting out a property.
Failing to obtain a licence when required is a criminal offence and can lead to prosecution, fines of up to £30,000, or an order to repay rent.
Southwark Council guidance states that landlords are usually given 10 working days to address such breaches before formal action is taken.
Reeves said she notified both the Prime Minister and the independent adviser on ministerial standards once she became aware of the breach.
At the time, Starmer said further investigation was “not necessary” given her “prompt action to rectify the position, including her apology”.
The renewed scrutiny comes after the resignation of Angela Rayner as Deputy Prime Minister and Housing Secretary less than two months ago.
Rayner quit after being found to have underpaid capital gains tax on the sale of her £800,000 flat in Hove. An investigation by the Prime Minister’s ethics adviser concluded she had not upheld “the highest possible standards of proper conduct”.
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