Reeves
apologised in writing, calling it an “inadvertent error,” while Southwark
Council confirmed landlords can face unlimited fines for unlicensed rentals.
By
Sarah Mitchell, London — 30 Oct 2025, 18:00 GMT
London,
United Kingdom — Prime Minister Sir Keir Starmer has ruled out a formal
investigation into Chancellor Rachel Reeves after she admitted breaching
housing regulations by renting out her London home without the required local
licence.
Sir
Keir Starmer said he was satisfied that the issue “can be drawn to a close”
after consulting his independent ethics adviser, Sir Laurie Magnus, who found a
formal inquiry unnecessary.
The
matter came to light when the Daily Mail approached Reeves for comment on
Wednesday regarding the property in Dulwich, South London, which had been
listed for £3,200 per month after she moved into Downing Street following
Labour’s 2024 election win.
In
a letter to the prime minister, Reeves wrote that she “regrettably” had not
realised a selective licence was required under Southwark Council rules. She
said her letting agent had assured her it would advise her if a licence was
needed but failed to do so.
“This
was an inadvertent mistake. As soon as it was brought to my attention, we took
immediate action and have applied for the licence,” Reeves wrote. “I sincerely
apologise for this error.”
In
his response, Starmer noted that the public expects “the highest standards”
from ministers but accepted the adviser’s view that Reeves’ swift correction
and apology sufficed. “The matter is now closed,” a Downing Street spokesperson
added.
Opposition
parties, however, have called for greater transparency. Conservative leader
Kemi Badenoch said, “She is the chancellor — she should be on top of her
paperwork. If she has broken the law, Starmer must apply his own rules.”
Scotland’s
First Minister John Swinney described the episode as “extraordinary
carelessness,” while Liberal Democrat deputy leader Daisy Cooper warned that it
risked undermining confidence in the government ahead of next month’s Budget.
Southwark
Council confirmed that landlords found to be operating without a licence can
face prosecution or unlimited fines. However, a spokesperson said enforcement
action typically follows only if landlords fail to apply after being warned.
“We cannot comment on individual cases,” the council added.
Under
the local selective licensing scheme, landlords must pay £945 per property to
ensure compliance with safety and quality standards. Reeves has previously
supported such schemes — including Leeds City Council’s recent expansion — as
tools for improving rental housing conditions.
Tenant
advocacy group Acorn said the case highlighted a “double standard.” In a
statement, the group said: “It is laughable for those in the highest positions
of power to back these rules and then fail to follow them themselves.”
Reeves’
office has declined further comment while the application is processed. Neither
Downing Street nor the ethics adviser would confirm whether the chancellor
could face a fine if Southwark Council decides a breach occurred.
Political
analysts say the controversy poses an unwelcome distraction for the government
ahead of its first full Budget, expected to include difficult decisions on tax
and spending.
Labour
figures privately admit the episode underlines the importance of due diligence
among ministers, particularly given Starmer’s previous pledge that “lawbreakers
cannot be lawmakers.”
This
report is based on official correspondence between the prime minister and the
chancellor, statements from Southwark Council, and verified media briefings.
All claims have been cross-checked with publicly available documents and
council guidance.
By
Sarah Mitchell, Political Correspondent, CRN Times Newsroom
Date:
30 October 2025 – 18:00 GMT
Bio:
Sarah Mitchell covers UK government, accountability, and ethics for CRN Times.