Chancellor Rachel Reeves has referred herself to the independent ethics adviser after admitting she rented out her family home without the correct local authority licence.

Reeves (main picture, inset) placed her four-bedroom property in Dulwich on the rental market for around £3,200 a month after moving with her family into 11 Downing Street last year.

Her register of interests shows she has received rental income since September 2024.

Under Southwark Council rules introduced in November 2023, landlords in certain areas of the borough must obtain a “selective licence” before letting their property.

INADVERTANT MISTAKE

The requirement applies to most private rentals, excluding holiday lets, houses in multiple occupation and homes where the owner still resides.

A spokesperson for the Chancellor told Daily Mail that the omission was an “inadvertent mistake”.

AGENT BLAME

The property had been let through an external agency and Ms Reeves was not made aware that a licence was required.

“As soon as it was brought to her attention she took immediate action and has applied for the licence,” the statement said.

“In the spirit of transparency she has informed the Prime Minister, the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards.”

CRIMINAL OFFENCE

Failure to obtain the appropriate licence can be treated as a criminal offence, carrying an unlimited fine or an alternative civil penalty of up to £30,000. Councils can also compel landlords to repay up to 12 months’ rent to tenants.

Southwark Council said the scheme was introduced to improve “safety, security and quality” in the private rented sector.

Conservative leader Kemi Badenoch described the revelations as “very serious” and called for a full investigation, saying the situation raised questions over the Chancellor’s position and the government’s commitment to upholding the law.

RENTERS’ RIGHTS ACT

Earlier this week the Renters’ Rights Bill received Royal Assent, marking the most sweeping overhaul of England’s private rented sector in decades.

Now the Renters’ Rights Act, the new law abolishes Section 21 “no-fault” evictions, replaces fixed-term tenancies with open-ended agreements and places limits on rent increases – signalling a fundamental shift in the balance of power between landlords and tenants.

It also introduces a national landlord register, a new private rented sector ombudsman and an updated Decent Homes Standard that extends to private landlords for the first time.