sir keir lets rachel reeves off the hook after estate agent takes blame in landlord licence row

The Prime Minister said there is no need for an investigation into Rachel Reeves’ rental ‘error’ (Picture: EPA)

Sir Keir Starmer has ‘full confidence’ in Chancellor Rachel Reeves as she released emails that appear to blame the estate agent for her breach of housing rules.

Reeves admitted she didn’t get a selective licence that landlords in south London have to obtain to rent out the property she lived in before moving into No. 11 Downing Street last year following the election.

The Chancellor said in a letter to the PM that she and her family ‘regrettably’ were not aware of the licence requirement in Southwark,where the family home is located.

The Prime Minister said in a letter to Ms Reeves,published on Thursday night,that after reviewing the correspondence,‘I still regard this as a case of an inadvertent failure to secure the appropriate licence,which you have apologised for and are now rectifying’.

He added: ‘Having consulted the Independent Adviser on Ministerial Standards and received his clear and swift advice,with which I concur,I see no need for any further action.’

Sir Keir said it was ‘regrettable’ that she had not shared the information in her first letter to him about the matter on Wednesday,but said he accepted she was ‘acting in good faith’.

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Craig Munro breaks down Westminster chaos into easy to follow insight,walking you through what the latest policies mean to you. Sent every Wednesday. Sign up here.In a letter to Sir Keir Starmer,the Chancellor wrote: ‘I am sorry about this matter and accept full responsibility for it.’Harvey Wheeler,were the estate agents used by the Chancellor,to rent out her £3,200pcm property in trendy Dulwich in south London when she became Chancellor.They have now apologised to her for not applying for a licence on her behalf,having offered to do so when one member of staff suddenly quit.An email exchange between Nick Joicey,the Chancellor’s husband,and the letting agency included a paragraph showing the agent saying they will sort out the licence.In one email dated July 26,Harvey Wheeler reveals the licence will cost £900,adding: ‘You will pay in two parts,so £640 first and then once the application has been processed then the remaining £260.00 is taken.’Harvey Wheeler,the estate agents used by the Chancellor,to rent out her property in south London,have now apologised to her (Picture: Number 10)This afternoon,a spokesman for No 10 told reporters that the Prime Minister was backing the Chancellor and she would deliver the Budget in a few weeks’ time as planned.A No 10 spokesman told reporters: ‘Following a review of emails sent and received by the Chancellor’s husband,new information has come to light.‘This information has been passed to the Prime Minister and his independent adviser.’He added: ‘The Prime Minister has full confidence in the Chancellor.’Selective licences are designed for councils to improve the private rented conditions and keep track of who is letting out homes.Failing to secure a licence where it is required could lead to a prosecution or a fine.Earlier today,Sir Keir said he had consulted his independent ethics adviser,Sir Laurie.The PM said: ‘He has advised me that in relation to your inadvertent failure to secure the appropriate licence for your rental property – and in light of your prompt action to rectify the position,including your apology – further investigation is not necessary.‘The Ministerial Code makes clear that in certain circumstances,an apology is a sufficient resolution. It is important that all ministers are able to acknowledge where they consider themselves to have fallen below the standards expected of them.‘I am satisfied that this matter can be drawn to a close following your apology.’However,the issue means the opposition have had a field day whilst stopping short of calling for her resignation.A Tory spokesperson 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.’Kemi Badenoch,the Conservative leader,called for a ‘full investigation’ into Reeves’ mistake.In a post on X,Badenoch quoted Starmer’s past comments,saying: ‘He once said “lawmakers can’t be lawbreakers”.‘If,as it appears,the Chancellor has broken the law,then he will have to show he has the backbone to act.’The Chancellor’s rental blunder comes just weeks before her autumn budget (Picture: AFP/Getty)Daisy Cooper,the Liberal Democrat deputy leader,said the ‘only thing she appears to be growing is the Government’s list of scandals’ instead of ‘delivering growth’ for the economy.Southwark Council has suggested enforcement action is reserved for landlords who ignore warning letters about not having a licence or keep a property in an unsafe condition,which suggested Reeves is unlikely to be fined.Gareth Martin,owner of Harvey Wheeler,said: ‘We alert all our clients to the need for a licence. In an effort to be helpful our previous property manager offered to apply for a licence on these clients’ behalf,as shown in the correspondence. That property manager suddenly resigned on the Friday before the tenancy began on the following Monday.‘Unfortunately,the lack of application was not picked up by us as we do not normally apply for licences on behalf of our clients; the onus is on them to apply. We have apologised to the owners for this oversight.‘At the time the tenancy began,all the relevant certificates were in place and if the licence had been applied for,we have no doubt it would have been granted.‘Our clients would have been under the impression that a licence had been applied for. Although it is not our responsibility to apply,we did offer to help with this.‘We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for.’

Rachel Reeves' letter in full

This is what the Chancellor told Sir Keir in her apology letter: ‘I wanted to make you aware of a matter which has been brought to my attention regarding my family home which we are letting out to tenants via an external lettings agency.

‘There are selective licensing requirements in this ward for renting out a property. Regrettably,we were not aware that a licence was necessary,and so we did not obtain the licence before letting the property out.

‘This was an inadvertent mistake. As soon as it was brought to my attention,we took immediate action and have applied for the licence.

‘The property is declared on the Members’ Register of Interests in line with requirements. I have today spoken to the Independent Adviser on Ministerial Standards and I have made the Parliamentary Commissioner for Standards aware.

‘I sincerely apologise for this error and I would be happy to answer any questions you may have.’

The issue comes at an awkward time for Sir Keir and the Chancellor ahead of the autumn budget next month.

It also comes after Angela Rayner was also under pressure for breaching housing rules in September and then stepped down as the deputy Labour leader after underpaying tax on her second home.

Lord Mandelson was sacked as the ambassador to the US after his links with the convicted paedophile Jeffrey Epstein were revealed.

Reeves is expected to deliver her autumn budget on November 26,and rumours are swirling over possible tax rises.

She said: ‘Britain’s economy isn’t broken. But I know it’s not working well enough for working people. 

‘Bills are high. Getting ahead feels tougher. You put more in,get less out. That has to change.’