PM Starmer rules out probe as estate agent apologizes and takes responsibility
Prime Minister Keir Starmer has declined to initiate an inquiry into Chancellor Rachel Reeves after she admitted failing to secure a selective licence for letting out her London property.
Reeves wrote to the prime minister acknowledging she had not obtained the necessary licence before renting her family home, describing the omission as an “inadvertent error” and offering a “sincere” apology.
Following the admission, Starmer stated that the matter was resolved after consultation with his independent ethics adviser, who determined that no investigation was warranted.
While responsibiity ultimately rests with the landlord, the letting agency which oversaw the renting out of Reeves's former family home later apologized in a statement.
Gareth Martin, owner of Harvey Wheeler, said: "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."
He added:"We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for."
The Conservative Party has urged for a formal investigation and suggested Reeves should be dismissed if found to have broken the law.
A spokesperson for Downing Street would not confirm whether Reeves had breached the ministerial code or if she would step down in the event of a council fine.
Reeves became aware of the issue after the Daily Mail contacted her for comment on Wednesday. Correspondence between the chancellor and the prime minister revealed they met to discuss the matter on the same day.
“As soon as it was brought to my attention, we took immediate action and have applied for the licence,” Reeves wrote. “I sincerely apologise for this error and I would be happy to answer any questions you may have.”
Starmer replied that the public expected “the highest standards” and confirmed that ethics adviser Laurie Magnus had advised that no further action was necessary, citing Reeves’s prompt response and apology.
Sources close to Reeves indicated that her letting agent had been expected to advise her on licensing requirements but did not do so.
After Labour’s election victory in July 2024, Reeves’s London home was let for £3,200 per month. The property is located in an area where Southwark Council mandates a selective licence for private landlords, costing £945.
Reeves has previously supported the use of selective licensing by local authorities. Less than a fortnight ago, she welcomed Leeds City Council’s expansion of the scheme, posting the statement on a social media platform.
I welcome Leeds City Council's decision to expand their selective landlord licencing policy to include the Armley area.
— Rachel Reeves for Leeds West and Pudsey (@RachelforLWP) October 20, 2025
While many private landlords operate in the right way, we know that lots of private tenants in Armley face problems with poorly maintained housing. (1/3)
The development comes as Reeves prepares for the upcoming Budget, amid speculation over potential changes to tax policy.
Kemi Badenoch said the chancellor should be held accountable and should have kept on top of her paperwork. “She was aware of this legislation,” the Conservative leader pointed out. “I think there should be an investigation.
“But the bottom line is that Keir Starmer said again and again, ‘the law breakers shouldn’t be lawmakers’, so if she’s broken the law, then he should apply his own rules to her.”
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