Chancellor Rachel Reeves has received partial relief in the ongoing row over her family home being rented without a required local authority licence, after her letting agent admitted fault in the oversight.
Reeves and her husband rented out their South London property through Harvey & Wheeler after moving into a Downing Street flat following Labour’s 2024 election victory. Under Southwark Council regulations, private landlords in specific zones must hold a “selective licence” to rent out their homes. Failure to do so can result in repayment orders of up to 12 months’ rent, leaving Reeves theoretically liable for £38,400.
Agent Admits “Oversight”
Gareth Martin, owner of Harvey & Wheeler, acknowledged that the agency’s former property manager had offered to handle the licence application for Reeves but resigned three days before the tenancy began. The application was never filed.
Martin said the firm “does not normally apply for licences” but had apologised to the Reeves family for failing to notice the omission.
Political Fallout
The controversy emerged days before Reeves’s crucial Budget presentation, with the Conservative Party accusing her of misleading Prime Minister Keir Starmer and ethics adviser Sir Laurie Magnus.
Emails between the letting agent and Reeves’s husband, Nicholas Joicey, reportedly showed he was aware of the licence requirement and had asked the agency to arrange it — contradicting Reeves’s earlier claim that the couple were unaware.
Despite the revelations, Starmer reaffirmed his confidence in Reeves, describing the situation as an “inadvertent failure” rather than a deliberate breach. He declined to launch a further investigation, following Magnus’s conclusion that there was “no evidence of bad faith.”
Reeves Accepts Responsibility
In a letter to Starmer, Reeves apologised for the matter, stating she “accepts full responsibility” even though the omission was linked to the staff departure at the agency.
Magnus, after discussions with both Reeves and Joicey, said the husband “did not recall the exchange” with the agent, calling the situation “regrettable” but not malicious.
Legal and Financial Implications
According to Justice For Tenants, a non-profit group assisting councils with enforcement actions, Reeves remains legally responsible for the breach: “Simply saying you thought your agent would apply for a licence or tell you if you needed one is not an excuse in law.”
However, the organisation noted that if tenants sought a rent repayment order, the tribunal could reduce the amount based on the landlords’ cooperation and conduct.
Southwark Council confirmed that penalties for unlicensed rentals can exceed £3,000, shared between owners and agents. The council declined to comment on Reeves’s case specifically.
Summary
The incident underscores the legal duties of landlords, even high-ranking government officials, to ensure compliance with local housing laws. While Reeves’s agent admitted a key role in the mistake, the responsibility under law remains with the property owner — a reminder that administrative oversights can quickly become political crises.
