Chancellor Rachel Reeves failed to gain a selecting landlord licence when renting out her home in Dulwich, attracting some ire from the property industry.
The breach happened after she moved into No 11 Downing Street following Labour’s July 2024 election victory.
The issue has been blamed on Reeves’ lettings agency, which apparently didn’t tell her she needed a licence.
The problem came to light on Wednesday when the Daily Mail approached the Chancellor for comment, after which Reeves and Prime Minister Keir Starmer met later that evening.
Reeves wrote: “This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.
“I sincerely apologise for this error and I would be happy to answer any questions you may have.”
Phil Turtle, compliance director of Landlord Licensing & Defence said Reeves has committed a strict liability crime under section 95 of the Housing Act 2004, with unlimited fines if prosecuted in court.
Alternatively can issue a civil financial penalty up to £30,000 for a breach like Reeves’.
Turtle said: “Councils treat this as one of the most heinous crimes possible and we see dozens of small landlords every week fined often between £12,000 to £20,000 for this exact same criminal offence.
“Just like speeding, it is a strict liability crime and there is no defence of “I didn’t know” or my letting agent didn’t tell me. Councils are absolutely merciless in prosecuting small landlords because for them, fining landlords has become a major revenue stream.
“Will Reeve’s apology get her off the hook? It certainly wouldn’t get anyone else who rented out their former family home and didn’t license it. Council’s see these landlords as low hanging fruit for their revenue.”
Prime Minister Keir Starmer has declined launching an investigation into Reeves’ housing dealings, saying an apology is “sufficient”.