Chancellor Rachel Reeves has admitted to an “inadvertent mistake”, after failing to apply for a selective rental licence for her south London home, following her move to No. 11 Downing Street after the Labour government’s election win.
Under Part 3, Section 80 of the Housing Act 2004, local authorities may designate areas for selective licensing of privately rented homes, this is known as the selective licensing scheme. Landlords must check with the relevant council as to whether a selective rental licence is required, and if so, apply for the license before letting the property to tenants.
These schemes are intended to tackle low housing demand, poor housing conditions, and anti-social behaviour, by ensuring that landlords meet certain standards of management and property maintenance (e.g., to check that the landlord possesses the relevant gas safety certificates, energy performance certificates (EPC) and electrical installation condition reports (EICR)).
If a property does not have the correct licence, then a landlord and / or letting agent could be charged penalties, or even face prosecution. This could be an unlimited fine, or a financial penalty of up to £30,000. Landlords are also at risk of facing a rent repayment order being made against them, meaning that they would have to repay the rent that was collected during the time the property was unlicensed.
Landlords cannot always delegate away responsibility simply by appointing a letting agent. The statutory duty sits with the landlord.
The letting agent used by Chancellor Reeves has acknowledged oversight, stating that although they had offered to apply for the license on her behalf, the application was never submitted.
Downing Street has not confirmed that the Chancellor has now applied for a selective rental license.
With the new Renters Rights Act 2025 and other reform in housing / landlord and tenant law, compliance burdens on landlords are increasing.
Key lessons
If you are a landlord letting out your property, ensure to check whether you are required to possess a selective rental licence prior to letting the property, as not all councils require it.
If you have a property agent who manages the property, it will be worth double checking or asking for confirmation as to whether your agent has applied for the selective rental licence on your behalf if that was to be provided as part of the service. This will avoid any future disputes, akin to the one Chancellor Reeves has found herself in.
Ensure to check when your selective license expires. Selective licenses may be valid for up to 5 years, but are sometimes issued for shorter periods.
If you are unsure on any of the above, please seek advice from our residential landlords experts on 0161 696 6170 or complete our online enquiry form and a member of the team will contact you directly.
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