Estate agents used by Reeves did not apply for licence on her behalf as agreed

The estate agents used by Rachel Reeves to rent out her south London home have taken the blame for failing to obtain a licence, while the Chancellor accepted it was her responsibility to make sure it had been done.

Ms Reeves previously admitted to mistakenly breaching local council housing rules by failing to secure a “selective” rental licence for her family property.

She published emails on Thursday between her husband and the agency showing that Harvey & Wheeler had agreed to apply for the licence, while telling the Prime Minister she took “full responsibility” for the matter.

The Tories said the correspondence indicated Ms Reeves had been informed about a need for a licence, contradicting her earlier claim that she was unaware of the requirement.

Harvey & Wheeler said the property manager responsible for applying for the licence on her behalf had “suddenly resigned” before the tenancy began.

Owner Gareth Martin said: “We alert all our clients to the need for a licence. In an effort to be helpful, our previous property manager offered to apply for a licence on these clients’ behalf, as shown in the correspondence.

“That property manager suddenly resigned on the Friday before the tenancy began on the following Monday.

“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. 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. Although it is not our responsibility to apply, we did offer to help with this.

“We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for.”

In a letter to Sir Keir Starmer, 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.

“Nevertheless, as I said yesterday, I accept it was our responsibility to secure the licence. I also take responsibility for not finding this information yesterday and bringing it to your attention.

“As I said to you today, I am sorry about this matter and accept full responsibility for it.”

The Government released two chains of redacted emails dated between July 17 and August 13 2024, in which Nicholas Joicey and the firm corresponded about the necessary steps to rent out the south London home.

In one email dated July 26, Harvey & Wheeler reveal the licence will cost £900, adding: “You will pay in two parts, so £640 first and then once the application has been processed then the remaining £260.00 is taken.”

The emails from the letting agent also say they “will do the selective licence once the new tenant moves in”.

Sir Keir retains “full confidence” in Ms Reeves after seeing the exchange, according to Downing Street.

The Prime Minister and his independent ethics adviser, Sir Laurie Magnus, were handed the emails in advance of their publication.

Asked whether the highly-anticipated November 26 Budget would be delivered by the current Chancellor on the expected date, a No 10 spokesman confirmed it would.

Ms Reeves on Wednesday had told Sir Keir 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 after moving into No 11.

She said it was an “inadvertent mistake” and that her family had taken “immediate action” and applied for a licence as soon as she became aware of it.

In his response, Sir Keir said he was happy the “matter can be drawn to a close” after consulting his ethics adviser, who decided against launching a probe.

But the Conservatives questioned the Chancellor’s initial explanation that she had not been made aware that she was required to get a rental licence.

A Tory Party spokesperson said: “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. With more information coming to light every few hours, the Prime Minister needs to grow a backbone and start a proper investigation.”

Southwark Council said only landlords who ignore selective licence warning letters are penalised, implying Ms Reeves should avoid a fine as she immediately applied for the licence when she realised her error.

A spokesperson for the council said: “When we become aware of an unlicensed property, we issue a warning letter advising the landlord that they have 21 days to apply for a licence – enforcement action such as fines are reserved for those who do not apply within that time or where a property is found to be in an unsafe condition.

“We cannot comment on individual cases.”