Another housing row in Westminster leaves brokers questioning how landlords can trust the rules when ministers can't follow them
Rachel Reeves’ admission that she broke housing law by renting out her home without a licence has been branded “disastrous” by brokers, who say the scandal exposes both government hypocrisy and the increasing complexity of the landlord market.
The Chancellor, who moved into Downing Street after Labour’s election victory last year, had been letting her four-bedroom Dulwich property for £3,200 a month since September 2024 without securing the “selective licence” required by Southwark Council. Her spokesperson described the breach as “an inadvertent mistake”, saying she had relied on a lettings agency and had applied for the licence as soon as she became aware of the rule.
But many in the industry say the incident damages credibility just weeks before the Autumn Statement.
READ MORE: Reeves admits breaking housing law
Jeni Browne, pictured above centre, of Mortgage Finance Brokers said: “I think this is disastrous for the Labour party. On one hand they are introducing tighter controls on landlords and will no doubt be increasing taxes on property transactions in the Autumn Statement, yet on the other, two thirds of the most senior leads have broken the law [Rayner with stamp duty and now Reeves with licensing].
“Whilst both Rayner and Reeves have said these were genuine mistakes, the reality is that property investors are going to take an incredibly dim view on a Government who are already holding on to their credibility by a thread, receiving the message that those who lead the country are making laws and then breaking them.”
For others, the episode underscores how confusing the private rented sector has become. Anthony Emmerson, pictured above left, of Trinity Financial, said: “This is a direct reflection of how unnecessarily complicated the current landlord market is at the moment in all areas of licensing to taxation.
“There are two parts to this situation that need to be reviewed in my opinion. First part is the way Southwark council handles her situation should set a precedent as to how it and other councils treat other landlords who also commit an ‘inadvertent mistake’, as if the average landlord is prosecuted for such a mistake then she should also be prosecuted in the same way and her position of power should not protect her.
“Second part is who is responsible for advising her on what is needed to let the property in the first place? If she used an estate agent to handle her rental, then surely they are responsible for providing the advice on what is required to be in place prior to letting the property in that council.
“Like the situation with Angela Rayner where she falsely claimed the solicitors had advised her on the correct tax to pay, and those solicitors then proved otherwise via correspondence that they had indeed not advised her of that, I believe if Rachel was advised by the agent of the required licence or even the possibility of requiring a licence, and she never obtained it, then she should be responsible rather than the agent. These are the two main issues on this that need reviewing prior to simply dismissing it as they have.”
Gaurav Shukla, pictured above right, of Home Me Mortgages, said the timing made the revelation particularly damaging. “Given that Rachel Reeves is set to deliver the Budget in less than a month, this incident inevitably draws scrutiny. While in some cases such oversights can be genuine mistakes, there’s little room for error when you’re part of the Prime Minister’s senior team, particularly as the Chancellor.
“Someone in that position should be fully aware that every detail will eventually come to light, and greater care should have been taken to ensure everything was above board. As Keir Starmer has stated, only an apology is needed, but would landlords receive the same leniency if they made the same mistake? I highly doubt it. How can this build confidence among landlords and investors who are being held to increasingly strict standards, when the very person setting the rules fails to follow a basic legal requirement?”
