An estate agent handling the letting of the Chancellor’s home in south London has been held liable for failing to obtain a selective license for the property while she lived in Number 11.
Real estate agents Harvey and Wheeler claimed responsibility for the “supervision” and did not apply for a license on her behalf despite agreeing to do so.
Rachel Reeves is under pressure to resign from the Conservative opposition after renting her home in Dulwich without obtaining selective permission from Southwark Borough Council, which is required for her borough of Dulwich Wood.
But Harvey Wheeler estate agent boss Gareth Martin said in a statement: “We remind all clients of the need to obtain a license. To help, our former property manager has offered to apply for a license on behalf of these clients, as indicated in the letter.
“The property manager suddenly resigned on the Friday before the tenancy started the following Monday.
Martin added: “Unfortunately we are not aware of the lack of applications as we do not normally apply for licenses on behalf of our clients; the responsibility for applications lies with them.
“Our clients may assume that a license has been applied for. While we are not responsible for applying, we do provide assistance.”
Downing Street last night published email exchanges between Rachel Reeves’ husband and her estate agent about the deal.
The real estate agent wrote in the key part: “I will take the PAT exam [portable appliance test for electrical appliances] Also, I will do selective permitting once the new tenants move in since I don’t need to do that yet. ”
Reeves also wrote again to Prime Minister Keir Starmer last night.
She apologized again and said: “Today, the leasing agency and my husband found correspondence confirming that the leasing agency informed my husband on July 17, 2024, of the need for an optional license and agreed to the agency’s application for a license on our behalf.
“Nevertheless, as I said yesterday, I accept that it is our responsibility to obtain the permit. I also take responsibility for not finding this information and bringing it to your attention yesterday.”
The government hopes this will quell attacks on Reeves, who will deliver his second budget on November 26.
But the opposition has been focused on the issue, with Conservative leader Kemi Badenock insisting the prime minister launch a “full investigation”.
A Tory spokesman added: “Last night Rachel Reeves said ‘she was not aware of the licensing requirement.'”
“Today we discovered that the real estate agent reminded Reeves that he needed a written license.
“After being discovered, the Chancellor is now trying to hold estate agents to account, but Reeves never followed up with them to ensure a license had been applied for, or to check whether a license had been granted.”
Reeves sparked the storm by seeking help from independent ethics adviser Sir Laurie Magnus after he admitted his mistakes to the prime minister following the Daily Mail report.
However, Starmer said there was “no need” for an investigation after permission was “inadvertently” failed to be granted after consulting with ethics advisers – which she is now seeking to rectify.
The chancellor put her four-bedroom detached house in Southwark on the market last year for £3,200 a month, and her register of interests shows she has been receiving rental income since September 2024.
Southwark Borough Council requires landlords to apply for an optional license when renting properties in Dulwich Wood, where the Reeves family is located.
A council can consider an area to require selective licensing for a number of reasons, including low housing demand, poor housing conditions or high crime rates.
Southwark Borough Council introduced selective licenses in some areas of the borough two years ago, which are valid for five years and cost £900.
It is a criminal offense to rent out a property in an area like this without an optional licence.
Penalties include civil penalties of up to £30,000, prosecution and unlimited fines, rent repayment orders and being added to the National Rogue Landlord Database.
The independent ethics adviser has taken action against ministers twice this year, accusing them of breaching the ministerial code involving property arrangements, resulting in forced resignations.
Homelessness minister Rushanara Ali resigned in August after evicting tenants and raising rents on properties she owned by hundreds of pounds just months later, in breach of the Tenants’ Bill of Rights passed by Labor this week.
