Rachel Reeves backed a scheme forcing landlords to gain a licence to rent out homes in her own constituency, despite claiming she was not aware of the rules when letting out her London home, The i Paper can reveal.
The Chancellor broke housing law by renting out her home in Southwark, London, without a licence after entering Downing Street in July 2024.
A spokesman for Reeves told the Daily Mail: “She had not been made aware of the licensing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence.”
In a letter to the Prime Minister, she “sincerely” apologised for her “inadvertent error” of not obtaining the licence.
Southwark Council requires people renting out their properties in certain areas to get one of the licences in advance. Not doing so can lead to a prosecution or a fine.
Earlier this month and in recent years, Reeves has welcomed the expansion of a selective licensing scheme in her constituency of Leeds West and Pudsey.
Reeves said in a Facebook post last week: “I welcome Leeds City Council’s decision to expand their selective landlord licencing policy to include the Armley area.
“While many private landlords operate in the right way, we know that lots of private tenants in Armley face problems with poorly maintained housing.
“This scheme means private landlords in the area will be required by law to obtain a licence for any residential property they are seeking to let and must meet certain standards to ensure the property is safe and in a decent state of repair.”
Rachel Reeves welcomed the expansion of selective licensing in Leeds (Photo: Facebook)She added that “everyone deserves a safe and secure home” and she looks forward to “continuing to work with the local community to improve conditions for renters”.
Just three months before she rented out her family home in London, she welcomed a previous expansion of the scheme in Leeds, the West Leeds Dispatch reported.
Alice Smart, a Labour councillor at Leeds City Council, was quoted as saying: “Rachel Reeves MP and the Armley Labour councillors welcome the news that a proposal to extend selective landlord licensing to Armley will be brought to Exec Board this month.”
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In January 2023, the Yorkshire Evening Post reported that Reeves and other Labour councillors in Armley were campaigning for the selective landlord licensing policy to be introduced in the area as soon as possible.
Smart told the newspaper the scheme would crack down on landlords who “cause problems for their tenants” and “force them to make sure they’re following council policy and doing right by their tenants”.
After Reeves apologised for falling foul of the rules, the Prime Minister said an investigation was “not necessary” and that he had consulted his independent ethics adviser, Sir Laurie Magnus.
Sir Keir Starmer said it was “regrettable that the appropriate licence was not sought sooner” but said he believed the Chancellor was “treating this matter with the urgency and seriousness it deserves”.
Reeves is said to have relied upon the advice of a letting agent, which would advise if a licence was needed.
In a letter to Starmer, Reeves said: “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 had earlier called on the Prime Minister to “launch a full investigation” into Ms Reeves’ error.
She added: “He once said ‘lawmakers can’t be lawbreakers’.
“If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act.”
Daisy Cooper, Lib Dem deputy leader, said: “The Chancellor is meant to be delivering growth but the only thing she appears to be growing is the Government’s list of scandals.
“Just weeks before the Budget, this risks seriously undermining confidence in this Government and its ability to focus on the urgent tasks at hand.”
Reeves was approached for comment.
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