Prime Minister Keir Starmer has decided that no formal investigation will be launched after Chancellor Rachel Reeves admitted she inadvertently let out her family home in Southwark without obtaining the necessary “selective licence” required by Southwark Council.
Reeves revealed that after moving into No 11 Downing Street in September 2024 she and her husband rented their four-bedroom house, listing it through a letting agency at around £3,200 a month. She said she was not made aware by the agency that the area required a selective licence and that once the oversight was brought to her attention she applied for the licence and notified the prime minister, the independent adviser on ministerial standards and the parliamentary commissioner for standards.
Starmer responded in a letter to Reeves stating that, after consulting his independent ethics adviser, he believed the prompt action, apology and correction were sufficient to draw the matter to a close. He said he was “satisfied that this matter can be drawn to a close following your apology.”
The opposition, however, challenged the decision. Kemi Badenoch, leader of the Conservative Party, called for a full investigation, citing Starmer’s own previous rhetoric that “law-makers can’t be law-breakers.” She asked whether the Chancellor had effectively broken the law by renting out the property without a licence and that the PM should act accordingly.
The context of the licensing regime is that Southwark Council requires private landlords letting properties in designated areas to apply for a licence in advance—failing to do so can lead to fines or prosecution. Reeves’s spokesperson said the letting agency did not advise the requirement, and that it was an inadvertent mistake.
Some commentators noted the timing is awkward for the government: the Chancellor is expected to deliver a major Budget soon, and the government has repeatedly emphasised higher standards of conduct for ministers. The row follows earlier controversies over housing and property tax behaviour by senior figures in the government.
In sum, Reeves says the breach was unintentional, she has taken remedial steps, and the prime minister deems no further formal inquiry necessary, though calls for more scrutiny remain.
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