Downing Street has moved to draw a line under the recent furore over Rachel Reeves’ rental licence, confirming the chancellor will face no further disciplinary action ahead of her crucial budget on 26 November.
Sir Keir Starmer stated that Ms Reeves would not be sanctioned over her “inadvertent failure” to obtain a licence for her south London property when she moved into Number 11 Downing Street last year.
The issue had prompted questions over whether she had breached housing law, with Conservative leader Kemi Badenoch calling for her resignation or dismissal.
In a letter published on Thursday evening, the prime minister clarified that correspondence shared by Ms Reeves showed her husband had been assured by their estate agents “that they would apply for a licence on his behalf”.
Sir Keir acknowledged it was “regrettable” that he had not been made aware of this correspondence sooner. An initial letter from Ms Reeves on Wednesday had suggested she was “not aware that a licence was necessary”.
A follow-up letter on Thursday revealed that she had located emails between the letting agent and her husband confirming that an application for the licence was to be submitted. In his reply, the PM noted: “I understand that the relevant emails were only unearthed by your husband this morning, and that you have updated me as soon as possible.”
Describing the incident as “an inadvertent failure”, Sir Keir said he saw “no need” for further action.
Lettings Agency Issues Apology
Downing Street also published guidance from the prime minister’s independent ethics adviser, Sir Laurie Magnus, who found “no evidence of bad faith” in Ms Reeves’ actions.
Gareth Martin, owner of the Harvey and Wheeler lettings agency involved, issued an apology. He confirmed a member of staff had promised to apply for the licence but “suddenly resigned” before the tenancy began. Mr Martin said: “We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for.”
The controversy erupted after a report in the Daily Mail revealed that Ms Reeves had failed to secure a “selective” licence for her family home in Dulwich, south London, which she vacated while living at Downing Street as chancellor. Under the Housing Act 2004, councils may require landlords to obtain accreditation in certain areas.
Ms Reeves has apologised both for the oversight and the delay in clarifying what advice her husband received from the estate agent. “I am sorry about this matter and accept full responsibility for it,” she told the prime minister.
Number 10 has repeatedly voiced its support for the chancellor, ensuring she can focus on preparing the upcoming budget.
