Chancellor Rachel Reeves has admitted she “inadvertently” rented out her south London home without the required local licence, a rule that carries a £945 fee. She informed Prime Minister Keir Starmer and parliamentary ethics officers after the Daily Mail first disclosed the oversight. Starmer backed the Chancellor following her admission. Reeves acknowledged the breach and said she would address the issue with the relevant authorities. The case places housing regulation and political standards in sharp focus, as ministers face scrutiny over compliance with rules that apply to all landlords. The lapse also highlights the spread of local licensing schemes across London, where councils charge fees and set conditions to raise standards in the private rented sector. Reeves continues her duties as Chancellor while the matter draws public attention to landlord obligations and the legal consequences of failing to obtain the correct paperwork.
Context and timing
The admission came on Wednesday, 29 October 2025, after the Daily Mail revealed that Reeves had let her south London property without the specific licence required by the local council. She notified the Prime Minister and parliamentary ethics officers shortly after the disclosure. The fee for the licence totals £945, according to reports. Downing Street indicated support for the Chancellor after her statement and described her action as an inadvertent error. The episode centres on local licensing rules that several London boroughs apply to private rentals.
What the licence covers and why councils require it
Councils in London operate licensing schemes under powers in the Housing Act 2004. These schemes aim to improve standards in private rentals and to tackle poor management. Some boroughs require licences for houses in multiple occupation (HMOs). Others run “selective” licensing that covers a wider range of privately rented homes in designated areas. In both cases, landlords must apply, pay a fee, and meet conditions such as safety checks, fit-and-proper person tests, and record-keeping.
Authorities set fees to cover the cost of running the schemes. Those fees vary by borough and property type. In this case, the required licence carried a £945 charge. Councils usually issue licences for up to five years, with renewal needed when schemes roll over or when property details change. Landlords must check the local rules before letting a property. Councils publish scheme maps, fee schedules, and guidance on their websites. Landlords can also contact council licensing teams for advice if they remain unsure about their obligations.
The Chancellor’s admission and political response
Reeves said she “inadvertently” failed to secure the licence before renting out her home. She disclosed the oversight to the Prime Minister and informed parliamentary ethics officers. Keir Starmer backed her after the admission, according to reports on Wednesday night. The Chancellor said she would deal with the local authority to regularise the position. Her team did not set out a timeline for next steps, but the acknowledgement signals a move to bring the property within the licensing regime.
The episode raises questions that often arise when elected officials navigate personal compliance with complex local rules. Ministers must follow the law, and they must address any breach quickly when they identify one. Officials commonly alert ethics advisers to potential conflicts or compliance issues. That process helps maintain transparency and public confidence as ministers carry out their roles. In this case, Reeves took responsibility for the lapse and signalled a plan to resolve it with the council involved.
Legal and financial consequences for unlicensed lets
Failing to hold a required property licence can lead to action by the local council. Under the Housing Act 2004, councils can seek civil penalties of up to £30,000 for certain offences, depending on the facts of the case. Councils can also prosecute in some circumstances. Tenants can apply for a rent repayment order in specific situations, which can require a landlord to return up to 12 months of rent, subject to tribunal decisions. Councils decide how to proceed based on the evidence, the severity of the breach, and local enforcement policies.
An unlicensed let does not invalidate a tenancy, but it can affect a landlord’s ability to recover possession. In many cases, a landlord who lacks the correct licence cannot use a “no fault” Section 21 eviction notice until they secure a licence or submit a valid application. Councils often encourage landlords to apply promptly if they discover a breach. Early contact can form part of the mitigation when officers assess enforcement options. The specific outcome in any case depends on the council’s investigation and the landlord’s response.
Licensing in London: a growing patchwork of rules
London councils have expanded licensing schemes over the past decade to improve rental standards and to target poor management. Selective licensing applies to most private rentals in defined wards or neighbourhoods. Additional licensing sits between selective licensing and HMO licensing, covering smaller shared homes that do not meet the full HMO threshold. Full HMO licensing applies to larger properties with multiple households and shared facilities. Each scheme sets conditions on safety, property management, and record-keeping.
This patchwork means rules can change from one street to the next, depending on where council boundaries and designated areas fall. Landlords must follow the specific rules for the council area where their property sits. Fees, application processes, and inspection regimes differ between boroughs. Many councils provide online tools that allow landlords to check if an address sits inside a licensed area. The breadth of these schemes underlines the importance of due diligence when owners let out a home in the capital.
Ethics oversight and public accountability
Ministers and MPs operate within overlapping standards systems. Parliamentary ethics officers advise on disclosure and compliance, while the ministerial system manages propriety and conflicts. When ministers report issues, those teams record the steps taken and consider whether further action is needed. In cases involving personal financial interests, disclosure and swift corrective action help reduce the risk of a prolonged dispute.
Public figures face heightened scrutiny because they help set and enforce policy. Clear disclosure and prompt correction can help restore trust when mistakes occur. Reeves’s acknowledgment and Starmer’s backing indicate a desire to draw a line under the issue by addressing the licensing status directly with the council. The outcome now rests with the local authority’s processes, which typically include checks, fee payments, and licence conditions.
Wrap-Up
Rachel Reeves has accepted that she rented out her south London home without the required £945 local licence and has told both the Prime Minister and parliamentary ethics officers. Keir Starmer supports her after the admission, and Reeves says she will engage with the council to sort the licence. The case highlights the reach of London’s landlord licensing schemes and the legal risks that follow if owners let properties without the correct paperwork. Councils can impose civil penalties and tenants can seek rent repayment orders in specific circumstances. Landlords must check local requirements because rules vary across boroughs and between property types. The next steps depend on the council’s process and any enforcement decisions. The episode underscores a simple point for anyone letting a home in London: check the local scheme, apply before tenants move in, and keep records up to date to avoid costly mistakes.