When even the Chancellor of the Exchequer falls foul of landlord licensing laws, every property investor in Britain takes notice. Rachel Reeves has admitted she let out her Dulwich home for £3,200 a month without the legally required selective licence from Southwark Council — a criminal offence under the Housing Act 2004.
Unequal enforcement leaves landlords furious
For ordinary landlords, failing to obtain a licence can mean fines of up to £30,000 or even prosecution. Yet Southwark Council, run by Reeves’ own Labour Party, says she can simply “apply now” and move on. That leniency will strike many landlords as galling hypocrisy — especially in the same week that the punitive Renters’ Rights Act took effect, tightening obligations on compliant landlords across England.
Last year, Southwark fined a local landlord and letting agent over £3,000 for the same offence. The council’s own housing lead, Councillor Natasha Ennin, said at the time:
“This case demonstrates our commitment to holding landlords and letting agents accountable when they fail to meet their legal obligations.”
That declaration now faces its most serious test. If Southwark genuinely believes in equal enforcement, it must hold the Chancellor to the same standard as any other property owner. Anything less will look like political favouritism — and send a dangerous message about accountability.
Landlords punished for far less
Reeves’ defence — that her letting agent was supposed to obtain the licence — would carry no weight for private landlords. Ignorance of the law, as every investor knows, is no defence. The selective licensing regime is designed precisely to ensure responsibility and compliance.
The irony is painful: Reeves herself has previously campaigned for stronger landlord regulation in her Leeds constituency. Now, she stands accused of breaching the very system she helped shape. Even the Ministerial Code leaves no room for ambiguity — ministers have “an overarching duty to comply with the law.”
Angela Rayner’s earlier housing controversy and Reeves’ licensing lapse both illustrate how complex, inconsistent, and overbearing property regulation has become. If even senior ministers can stumble through the maze of rules, what hope remains for smaller landlords juggling compliance with rent freezes, rising mortgage rates, and local licensing fees?
Political fallout and public confidence
Reeves has apologised and referred herself to the government’s ethics watchdog, while Sir Keir Starmer insists the matter is “closed.” But for landlords and letting professionals, it’s far from over. How can a government that routinely demonises private landlords expect compliance when its own senior figures disregard the same laws?
Southwark Council now faces a critical credibility test. It could issue a civil penalty — potentially up to £30,000 — or pursue prosecution. Either path would show that the law applies equally, regardless of political title. To do nothing, however, would expose the double standard long felt by property owners navigating Labour’s regulatory labyrinth.
Editor’s view
This episode isn’t just a political embarrassment — it’s a lesson in fairness. When ordinary landlords face ruinous penalties for minor administrative slips, ministers cannot expect sympathy when they make the same mistakes. If Southwark Council lets this slide, it will confirm what many landlords already suspect: one rule for them, another for us.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 31 October 2025
Sources: Southwark Council, Housing Act 2004, Daily Mail, Ministerial Code, Renters’ Rights Act 2025
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