Chancellor Rachel Reeves will not face any formal sanction for renting out her family home for over a year without the required selective licence.

Initially, Reeves acknowledged the oversight, stating she had failed to obtain the licence for the £3,200-a-week property. She later clarified that the letting agency managing the home had assured her it would handle the licensing process, but failed to do so following a staff departure. The agency has since issued an apology.

The decision not to penalise Reeves contrasts with enforcement actions taken against other landlords by Southwark Council — a Labour-run authority in south London — including a £3,000 fine issued last year in a similar case.

At the time, an official from Southwark Council stated: “This case demonstrates our commitment to holding landlords and letting agents accountable when they fail to meet their legal obligations. Licensing ensures that rented properties in Southwark are safe and well-maintained for our residents. We will continue to take action against those who put tenants at risk.”

Southwark Council has now issued a revised statement addressing the circumstances surrounding Chancellor Rachel Reeves.

A spokesperson explained that when the council identifies an unlicensed rental property, its standard procedure is to send a warning letter giving the landlord 21 days to submit a licence application.

The spokesperson adds: “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.

“Southwark Council requires private landlords to acquire a selective license in order to rent out their homes if they live in specific areas. This is in order to protect tenants and ensure landlords are complying with housing requirements, providing safe, well-maintained homes.

“Selective licenses are acquired by sending applications to the council, which we then assess and approve subject to conditions.”