Rachel Reeves was accused of breaking housing regulations (Image: Getty)
Rachel Reeves broke housing regulations by renting out her home without a licence after entering Downing Street, it emerged tonight.
The Chancellor has sparked uproar as she referred herself to the independent ethics adviser, claiming “she had not been made aware of the licencing requirement”, after she put her Dulwich home on the rental market.
But she did not obtain a licence from Southwark Council, leading to calls for her to be sacked.
Ms Reeves told the Prime Minister about the blunder.
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The Chancellor put her four-bedroom detached house on the market for £3,200 a month last year, and her register of interests states she has received rental income since September 2024.
A spokeswoman for Ms Reeves told the Daily Mail: “Since becoming Chancellor Rachel Reeves has rented out her family home through a lettings agency.
“She had not been made aware of the licencing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence.
“This was an inadvertent mistake and in the spirit of transparency she has made the Prime Minister, the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards aware.”
Tory leader Kemi Badenoch said: “If the Chancellor, who has spent months floating punishing tax hikes on family homes, has at the same time seemingly been profiting from illegally renting out her house, that would make her position extremely tenuous.
“The Prime Minister must launch a full investigation. He once said “lawmakers can’t be lawbreakers”. If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act.”
Shadow Foreign Secretary Dame Priti Patel also called on the Chancellor to be sacked. She said: “Looks like Rachel Reeves has broken the law on her second home.
“She’s threatened tax hikes on family homes, imposed new laws on landlords, while failing to follow the law by illegally renting out her house.Southwark Council must prosecute her for breaking the law & Starmer should sack her.”
Cllr Victor Chamberlain, Leader of the Liberal Democrat Opposition in Southwark, said: “When Southwark Labour introduced this licensing scheme, they promised it would crack down on bad landlords and protect tenants.
“Yet when the Labour Chancellor has been caught breaking the rules – and the council hasn’t taken any enforcement action. That speaks volumes about Labour’s failure to properly regulate landlords locally.
“If Rachel Reeves can’t follow the housing laws set by her own party in Southwark, how can anyone trust Labour to get it right for private renters across the country? Not only are Labour failing as social landlords, they can’t even follow their own rules when their MPs are private landlords.
“The Liberal Democrats are the only party holding Labour to account – and residents will remember that when they go to the ballot box in May.”
Southwark Council said licences, which cost £900, were brought in to “improve safety, security and quality for people living in private rented homes”.
Landlords must submit documents proving their property is fit for purpose, including gas, electrical and fire safety certificates, floor plans and tenancy agreements.
Rachel Reeves Under Pressure as Housing Row Raises Questions Over Standards and Accountability
The controversy surrounding Rachel Reeves has placed further pressure on the Labour Government, with opposition parties arguing that the episode raises wider questions about whether ministers are being held to the same standards expected of ordinary landlords and members of the public.
The Chancellor has insisted that the failure to obtain the required licence was an administrative mistake rather than a deliberate attempt to avoid regulations. Her allies argue that she acted quickly once the issue was identified, informed the relevant authorities and began the process of correcting the situation.
However, critics say the explanation will not satisfy voters who have already been frustrated by rising housing costs and increased regulation. They argue that ministers who introduce rules for others must be especially careful to follow those same rules themselves.
The row is particularly sensitive for Ms Reeves because housing policy has been central to Labour’s economic agenda. The Chancellor has previously backed measures aimed at improving standards in the private rental sector and has warned against practices that place pressure on tenants.
Opposition MPs have seized on the issue as evidence of what they describe as a growing gap between Labour’s promises and the actions of its senior figures. Conservative politicians argue that the incident damages the Government’s credibility at a time when many households are struggling with mortgages, rents and the cost of living.
Labour supporters, however, say calls for resignation are politically motivated and point out that the Chancellor voluntarily disclosed the issue rather than attempting to hide it. They argue that transparency and correcting mistakes are important parts of public accountability.
The Independent Adviser on Ministerial Standards is now expected to consider the circumstances surrounding the breach and whether any further action is required. The outcome could influence how the Government handles similar situations involving ministers in the future.
The dispute also highlights the political sensitivity of housing regulation. Across Britain, councils have introduced licensing schemes designed to improve safety standards in privately rented homes. Supporters say these measures protect tenants, while critics argue they can create unnecessary bureaucracy and costs for responsible landlords.
For Rachel Reeves, the timing could hardly be more challenging. Labour is already facing criticism over taxation, public services and economic confidence. A controversy involving housing rules risks reinforcing opposition claims that the Government is struggling to maintain public trust.
The Prime Minister now faces a difficult balancing act. He must demonstrate that his Government applies high standards to its own ministers while avoiding the impression that every political controversy automatically becomes a leadership crisis.
Ultimately, the significance of the dispute may depend less on the licence itself and more on the public perception of fairness. At a time when many voters feel under financial pressure, questions about whether those in power follow the rules they create can quickly become politically damaging.
The coming days will determine whether the issue fades as a minor administrative error or develops into a wider challenge for the Chancellor and the Government’s reputation for competence and accountability.