UK Treasury chief Rachel Reeves has found herself at the center of controversy after admitting she broke the law by renting out her south London home without the required local authority licence. The incident, which surfaced on October 30, 2025, has triggered sharp political debate, questions about ministerial accountability, and a fresh round of scrutiny for Prime Minister Keir Starmer’s Labour government as it grapples with economic headwinds and recent scandals.
The story broke late on October 29, when The Daily Mail reported that Reeves, who had moved with her family into a government-owned apartment adjacent to the prime minister’s Downing Street residence after Labour’s July 2024 election victory, had failed to secure a rental licence for her former home—a legal requirement in her local borough. Under local law, landlords without such a licence can face prosecution or hefty fines.
In a letter to Prime Minister Starmer, published by the prime minister’s office and widely circulated in the press, Reeves described the oversight as “an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.” According to BBC, Reeves further explained that her letting agency had assured her family they would handle the licensing process but ultimately failed to do so. Nonetheless, she accepted personal responsibility, stating, “it should have been my responsibility to check that this had happened.”
Downing Street responded swiftly. Starmer, after consulting the government’s independent ethics adviser, said in a statement, “I am satisfied that this matter can be drawn to a close following your apology.” The adviser concluded that “further investigation is not necessary.” Yet, not everyone was content with drawing a line under the affair.
Kemi Badenoch, leader of the Conservative Party, was quick to criticize the prime minister’s stance. “This whole thing stinks. The Prime Minister needs to stop trying to cover this up, order a full investigation and, if Reeves has broken the law, grow a backbone and sack her!” Badenoch told Sky News. She argued that ministers who break the law should resign, though she herself admitted to unlawfully hacking a political rival’s website in her twenties—a move she dismissed as irrelevant since she was not then a lawmaker.
The Conservative Party initially called for Reeves’ resignation but later moderated its demands, instead insisting on a full investigation. A Tory spokesperson stated, “Last night Rachel Reeves said she had not been made aware of the licensing requirement. Today, we find out that Reeves was alerted to the need for a licence in writing by the estate agents. Having been caught out, the chancellor is now trying to make the estate agents take the blame, but Reeves never followed up with them to ensure that the licence had been applied for, or checked if the licence had been granted. Regardless, under the law, Reeves and her husband are responsible for ensuring the licence is granted.”
Adding complexity, Downing Street released a redacted email exchange between Reeves’ husband, Nick Joicey, and the letting agency, Harvey Wheeler. The correspondence included an email in which an agency employee said they would “sort out the licence.” The agency later apologized for the “oversight,” explaining that a property manager who had offered to handle the application resigned unexpectedly just before the tenancy began. Gareth Martin, owner of Harvey Wheeler, said, “We have apologised to the owners for this oversight. At the time the tenancy began, all the relevant certificates were in place and if the licence had been applied for, we have no doubt it would have been granted. Our clients would have been under the impression that a licence had been applied for.”
Not all voices in the political sphere saw the incident as grounds for resignation. Former Tory MP Miriam Cates criticized her party’s initial calls for Reeves to step down, remarking, “If most Brits seriously think that inadvertently failing to obtain an obscure housing rental licence makes someone unfit to serve as Chancellor, then quite frankly we richly deserve to be governed by uninspiring technocrats.” Former Conservative chancellor Nadhim Zahawi echoed her sentiment on social media.
Nonetheless, the episode has added to a string of recent embarrassments for Starmer’s government. In September, Deputy Prime Minister Angela Rayner resigned after failing to pay sufficient tax on a home purchase. Days later, Britain’s ambassador to Washington, Peter Mandelson, was dismissed over his links to convicted sex offender Jeffrey Epstein.
The timing of the Reeves affair is particularly awkward for Labour. The government faces mounting pressure over the state of public finances, with inflation stubbornly high and economic growth lagging behind expectations. Reeves is due to deliver her annual budget statement on November 26, and speculation is rife that she may have to abandon a pre-election promise not to raise income or sales tax—an admission that the economic picture is grimmer than anticipated after 14 years of Conservative rule.
Meanwhile, Southwark Council, the local authority where Reeves’ property is located, indicated it only enforces fines on landlords who ignore warnings about licensing. According to The Guardian, the council’s practice is to take enforcement action “only against landlords who don’t get a licence within three weeks of a warning or if the property is unsafe.” Reeves, having applied promptly after being notified, is likely to avoid further penalty.
The affair has also reignited debate over the complexity of landlord licensing schemes. Industry experts warn that missed deadlines and administrative oversights can result in devastating fines, with one compliance consultant telling LandlordTODAY, “One missed deadline can cost you £105,000, and if you’re operating through a limited company, that fine could double.” However, Reeves’ case appears to fall on the less severe side of the spectrum, as she acted swiftly to correct the error once discovered.
For now, Starmer’s office maintains full confidence in Reeves, even as the government’s ethics adviser reviews newly surfaced information. The prime minister’s spokesperson stressed that the review of fresh emails does not amount to a formal investigation, and reiterated, “the PM has full confidence in the chancellor.”
As the political storm rages, the incident has become a litmus test for ministerial accountability, party discipline, and the public’s appetite for scandal. With the budget statement looming and the economic situation precarious, all eyes remain on Rachel Reeves—not just for her handling of a rental licence, but for her stewardship of the nation’s finances at a critical juncture.
