Reeves's estate agent takes blame in rent rules breach

Rachel Reeves has taken full responsibility for her failure to get the correct licence to rent her south London property, as crucial new emails were passed to the prime minister and his ethics adviser.

- DAVID MADDOX & CAITLIN DOHERTY

With one of the most consequential Budgets in recent history less than a month away, the chancellor has found herself under scrutiny for potentially breaking the law.

Ms Reeves was thrown a lifeline when her estate agent issued a statement admitting a mistake and apologising. An email from Harvey & Wheeler to Ms Reeves's husband appeared to show the firm had offered to obtain the licence on their behalf.

Sir Keir Starmer has told Ms Reeves she will face no further action over her “inadvertent failure” to obtain a rental licence, even though it was “regrettable” emails about the arrangement had not been shared with him initially.

In its statement, the firm suggested that Ms Reeves “would have been under the impression that a licence had been applied for”.

The prime minister's independent standards adviser, Sir Laurie Magnus, said he still believes the chancellor made an “unfortunate but inadvertent error” in her failure to obtain a rental licence, and that it was clear her husband “did not recall” being informed about the requirement for a licence.

In a letter to the prime minister, published yesterday, the chancellor wrote: “Today the letting agency and my husband have found correspondence confirming that on 17 July 2024 the letting agent said to my husband that a selective licence would be required and agreed that the agency would apply for the licence on our behalf.

“They have also confirmed today that they did not take that application forward, in part due to a member of staff leaving the organisation.