Starmer clears Reeves over ‘inadvertent’ failure to obtain rental licence
Sir Keir Starmer has told Rachel Reeves she faces no further action over her “inadvertent” failure to obtain a rental licence for her south London family home.
The Chancellor previously admitted to mistakenly breaching local council housing rules by failing to secure a “selective” licence for the property when it was rented out following her move into No 11 Downing Street.
She initially said that she was unaware of the requirement, but emails between her husband and the letting agency published on Thursday showed he had been informed about the need for a licence.
But estate agents Harvey & Wheeler took the blame for the “oversight” in not applying for a licence on her behalf, despite having agreed to do so.
The Prime Minister said in a letter to Ms Reeves, published on Thursday night, that after reviewing the correspondence, “I still regard this as a case of an inadvertent failure to secure the appropriate licence, which you have apologised for and are now rectifying”.
He added: “Having consulted the Independent Adviser on Ministerial Standards and received his clear and swift advice, with which I concur, I see no need for any further action.”
Sir Keir said it was “regrettable” that she had not shared the information in her first letter to him about the matter on Wednesday, but said he accepted she was “acting in good faith”.
“It would clearly have been better if you and your husband had conducted a full trawl through all email correspondence with the estate agency before writing to me yesterday,” the Labour leader said.
The Prime Minister’s independent standards adviser, Sir Laurie Magnus, told him that after seeing the emails, he still believed Ms Reeves made an “unfortunate but inadvertent error”.
Letter
In a letter to Sir Keir, he said he found “no evidence of bad faith” in Ms Reeves’s contradicting statements about her awareness of the need for the licence.
Sir Laurie wrote: “It is important to address the Chancellor’s statement in her letter to you of 29th October that she and her husband were not aware of the need for a licence. This was a key consideration reflected in my advice to you yesterday.”However, emails identified since then, and made public today, demonstrate that the Chancellor’s husband was in fact made aware of the need for a licence during the summer of 2024 and that he instructed the estate agency to obtain the licence accordingly.
“It is clear from his explanation today that the Chancellor’s husband did not recall this exchange, which took place at a very busy time.”
He added: “It is regrettable that information provided on successive days has generated confusion, but I find no evidence of bad faith.”
Sir Keir had accepted Ms Reeves’s initial explanation and apology on Wednesday, when she told him that “regrettably” she and her family were not aware a licence was needed in their area of Southwark, where they rented out their home for £3,200 a month.
The Prime Minister said he was happy the “matter can be drawn to a close” after consulting his ethics adviser, who decided against launching a probe.
The release of the email exchange on Thursday showing her husband had been informed, reopened the row.
Apology
Harvey & Wheeler owner Gareth Martin said in a Thursday statement that “our previous property manager offered to apply for a licence on these clients’ behalf”, but they “suddenly resigned” before the tenancy began.
“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,” he said. “We have apologised to the owners for this oversight.”
Ms Reeves, in releasing the email chain, told the Prime Minister said the agency “did not take that application forward”, but added: “I accept it was our responsibility to secure the licence.”
Tory leader Kemi Badenoch said the letting agency’s admission did not exonerate Ms Reeves.
“It’s still your duty to make sure that something has been followed. They said that they didn’t chase it up, but she was made aware, the family were made aware, that they had to follow those regulations,” Mrs Badenoch told LBC Radio.
Sir Keir and his ethics adviser’s letters late on Thursday appeared to confirm the Chancellor’s position was secure.
Her departure would have been a huge blow to the Prime Minister, just weeks before her highly-anticipated November 26 Budget and following several high-profile exits from Government, including former deputy prime minister Angela Rayner who stepped down over her tax affairs.
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It won’t be enough for the opposition.
There was a crime. The Land Lord is responsible for the crime not the agent.
Starmer does not have it in his power to forgive a crime.
A king may be able to to pardon. Starmer is not a king, I think he thinks he is.
Everyone is equal under the law. Even him.
Daily Wail and BadEnoch not happy this am.
It is not the agents responsibility to pay the licence The Land Lord would have been received a notice a licence is required. It is a criminal offence not to pay. In 2023 some £20 million pounds in fines collected by councils for non payment a licence. No one is above the law. I thought her boss was a lawyer?
True Yet the agent confirmed it would deal with that on her behalf Unlikely that Southwark will fine her Nothing to do with her being above the law She wouldn;t have known the licence had not been asked for having left that to the agent She would not have received any notice from Southwark unless a whistleblower The onus is on the landlord Furthermore under the Estate Agents Act and as a member of Propertymark it is incumbent on H& W to make sure the property is compliant on completion of the tenancy agreement Caroline Martin -Harvey & Wheeler ”… Read more »
In this case the agent was not acting within the Property Lettings company normal procedures as it says it is up to landlord to obtain licence.
It was it seems a favour by an individual who left the company abruptly, the company was not aware of that individuals promise.
Let’s not lose sight of the fact she stated to Starmer initially and he conveyed that to his ethics advisor that she was not aware she needed a licence, when subsequently email communication between her husband and the errant agent shows they knew of their responsibility to obtain one.
I think the appropriate word is offered a service not a favour for which the landlord pays a fee. It comes under the heading of looking after clients Having been advised by the agent she would undertake that task and being busy running the economy its probably fair to say she just forgot about it assuming it had been done Many agents as part of a management service apply for a licence on behalf of Landlords ‘ Especially as they are responsible for obtaining all the necessary certificates minor works to tick the compliance boxes to get a licence Lets… Read more »
The fee would be deducted from the rent by the agent as any other the agent incurs on behalf of their client such as the gas safety certificate.
Desperate attempt here to draw blood by Reform & others for what is little more than a minor communication error
Reeves an accidental landlord quite prudently entrusted the letting of her home with a local experienced agent
They oversaw some minor works to make the property fully compliant
The licence was a formality upon receipt of a £945 cheaue.payable in 2 instalments
They orgot.
To suggest Reeves resigns is off the wall
So she can initially lie to the PM, that they didn’t know they needed a licence, which he conveyed to the ethics advisor who was then not in receipt of the true facts.
Then she corrects the record once evidence to the contrary was produced in the form of emails.
It’s only a lie if she knew the information was false.
Well,lets revisit the emails when it was established it was needed e You might recall she was pretty busy at the time with forming a Govt and it was left with her husband to deal with the agent
Maybe she dint know as it wasnt discussed as he was mindful she had enough on her plate This all smacks of desperation for a scalp The next few months with Reform laying down their poison all over Wales its going to be simply unbearable
The Mail and the Cons will be even less happy when this saga results in a national landlord registration scheme in England, as already exists in Wales and Scotland.
Just received a mailshot from the https://www.openparty.uk/introduction/
Who say they are using the CasnewyddIslwyn new Senedd constituency as a launch, they say their candidates will be chosen by the constituents not a party, anybody come across them?
Both need to resign.