CHANCELLOR Rachel Reeves could be liable to repay over £41,000 in rent after admitting she failed to obtain a required housing licence for her Dulwich property in south London.
Reeves let her four-bedroom house for £3,200 a month from September last year after moving to 11 Downing Street.
Southwark Council requires landlords in certain wards to hold a “selective” licence, The Times reported.
The council said landlords have 21 days to apply once notified, with enforcement action reserved for those who fail to comply or whose properties are unsafe.
Under the Renters’ Rights Act, which Parliament passed this week, tenants or the council could apply for a rent repayment order covering up to two years of rent. This means Reeves could face repaying all 13 months of rent, totalling £41,600, The Times reported.
Steve Reed, the housing secretary, said at a parliamentary event that Reeves was not a “rogue” landlord and “as soon as she realised, she set about putting things right.”
Solicitor Giles Peaker told The Times that ignorance of licensing rules is not accepted as a reasonable excuse at tribunal.
Estate agency Harvey & Wheeler, which managed the property, apologised for not applying for the licence despite offering to do so. It said the omission occurred after a property manager’s resignation before the new tenancy began.
Land Registry documents show Reeves and her husband bought the property in 2012 for about £600,000 with an HSBC mortgage. The bank allows letting with consent for up to 27 months.
