Reeves faces ‘cover-up’ claims after breaking housing law

Chancellor faces potential £38,400 bill after failing to obtain licence from council for property she rents out Daily Telegraph 30/10/25 link Rachel Reeves faces accusations of a “cover-up” after wrongly claiming she and her husband did not know that they needed a licence to rent out their home.

The Chancellor is facing a potential bill of £38,400 after she failed to obtain a licence from Southwark council for a property she rents out in Dulwich, south-east London. In a letter to the Prime Minister on Wednesday evening, she wrote: “We were not aware that a licence was necessary.” But on Thursday evening, emails released by Downing Street showed detailed discussions about a licence between her husband Nicholas Joicey, a senior civil servant, and estate agent Harvey Wheeler. On Thursday night, the owner of the agency apologised for an “oversight” and said an employee who had offered to apply for a licence had resigned before the tenancy began and the company did not pick it up. Kemi Badenoch, the Tory leader, said: “This whole thing stinks. The Prime Minister needs to stop trying to cover this up, order a full investigation and, if Reeves has broken the law, grow a backbone and sack her.” Ms Reeves’s failure to obtain a licence means her tenants can now claim back a year’s rent to be refunded for living in an unlicensed property. As the house was rented out at £3,200 per month, Ms Reeves could have to pay back £38,400. The row erupted four weeks before Ms Reeves delivers her second Budget, and less than two months after Angela Rayner had to resign as deputy prime minister following a Telegraph investigation into her tax affairs. Earlier on Thursday, Councillor Victor Chamberlain, Southwark’s opposition leader, called for an investigation into what he described as an “absolute scandal”. The council requires private landlords in certain parts of the borough to obtain a £900 “selective” licence to prove that their property is fit for purpose. In a statement, the council said it would not take action against the Chancellor, saying she now had 21 days to apply for the licence and pay for it. This decision does not prevent the renters from asking for their rental money back. It came after Ms Reeves admitted on Wednesday night that she had broken housing rules, saying: “Regrettably, we were not aware that a licence was necessary, and so we did not obtain the licence before letting the property out.” In his response, Sir Keir Starmer claimed that Sir Laurie Magnus, the independent adviser on ministerial interests, had advised him that Ms Reeves did not have to resign because the mistake was inadvertent and she had apologised. But in a letter to the Prime Minister on Thursday, Ms Reeves wrote: “Yesterday I wrote to you and said that we were not aware that a licence was necessary to let out our property, based on conversations my husband had with the agency yesterday. “Today the letting agency and my husband have found correspondence confirming that on 17th July 2024 the letting agent said to my husband that a selective licence would be required and agreed that the agency would apply for the licence on our behalf.” Email exchanges between Mr Joicey and the estate agent show discussions about the need for a selective licence and the cost. A Conservative spokesman said: “Last night Rachel Reeves said she had not been made aware of the licensing requirement. “Today, we find out that Reeves was alerted to the need for a licence in writing by the estate agents. “Having been caught out, the Chancellor is now trying to make the estate agents take the blame, but Reeves never followed up with them to ensure that the licence had been applied for, or checked if the licence had been granted. “Regardless, under the law, Reeves and her husband are responsible for ensuring the licence is granted. With more information coming to light every few hours, the Prime Minister needs to grow a backbone and start a proper investigation.” The admission raises the prospect of an investigation by Sir Laurie. Despite expressing confidence in the Chancellor, Downing Street would not confirm on Thursday whether she had broken the ministerial code. Sir Keir has lost a series of ministers since the election, including Louise Haigh, who was forced out as transport secretary after it emerged she had pleaded guilty to a fraud offence a decade before. Ms Reeves has also faced a number of controversies since she became Chancellor last July. She accepted a string of freebies, and the parliamentary standards commissioner found she had inadvertently broken the rules by declaring some of them too late. She also faced claims that she had beefed up her CV by describing herself as an economist at a bank when she had only been involved in retail banking. On Thursday evening, the Conservatives also called on Southwark council to investigate Ms Reeves’s property over concerns that some features could breach the safety rules demanded of landlords. They claimed photographs of the property published online when the property was rented appeared to show upstairs windows that opened too wide, badly done electrical work and trip hazards. James Cleverly, the shadow housing secretary, said: “First Rachel Reeves rented out her second home without a licence. Now it seems the property may fall foul of Labour’s own safety standards. “Labour themselves have characterised landlords like her as rogue landlords. The hypocrisy is staggering. Southwark council must immediately investigate this.”