An agent says the controversy over licensing and Chancellor Rachel Reeves illustrates how complicated the whole licensing system is.

That’s the view of Richard Bryce, co-founder of estate agency House Collective. 

On Wednesday it was revealed by the press that Reeves had committed a strict liability crime under section 95 of the Housing Act 2004 when she failed to licence her family home when she let it for £3,200 a month following Labour’s General Election win in July 2025. After the Daily Mail contacted her with the claim, she admitted the offence and claimed it was the fault of her (so far un-named) lettings agency.

However by the end of yesterday, Reeves’ lettings agency – Harvey & Wheeler – apologised and explained how it had offered to help the Reeves family with an application, but had failed to do so. Although the agency also points out that “it is not our responsibility to do so.”

Bryce says: “Selective licensing requires landlords to apply for a licence before letting out a property, with councils setting their own rules, fees and inspection standards. It isn’t in place everywhere, which makes it even more confusing. 

“One council might require a licence while the one next door does not, and even within the same borough it may only apply to certain wards. In Southwark, where Reeves’ Dulwich home is located, the scheme was extended in November 2023 to cover Dulwich and several nearby wards. Westminster Council, meanwhile, is only introducing its own scheme this November.”

Bryce adds: “Over the past decade, landlords have been hit by rising costs, reduced tax relief and an ever-growing tangle of regulation, capped off this week by the Renters’ Rights Bill receiving Royal Assent. The message for some landlords has been clear: renting out a property just isn’t worth the hassle. For many smaller or accidental landlords, the result is simple. They’re selling up. Each time they do, another rental disappears from the market, tightening supply and pushing rents higher.”

Meanwhile a licensing expert says he is waiting with bated breath to see if Labour-controlled Southwark council takes action against Reeves, whose family home is within its patch. 

Even with the agent’s apology, it is still technically the case that Reeves – as the landlord – was in breach of council policy and the law.

Phil Turtle of Landlord Licensing & Defence says: “Councils treat this as one of the most heinous crimes possible and we see dozens of small landlords every week fined often between £12,000 to £20,000 for this exact same criminal offence.

“Just like speeding, it is a strict liability crime and there is no defence of “I didn’t know” or my letting agent didn’t tell me. Councils are absolutely merciless in prosecuting small landlords because for them, fining landlords has become a major revenue stream.”

Turtle describes the licensing regimes operated by many councils as “toxic and corrupt” with small landlords typically picked on, rather than corporates or Build To Rent operators. Similarly he regards it as unfair that many councils “go out of their way to persuade tenants to make a rent Repayment Order for 12-months rent back” – shortly to be 24-months under the new Renters Reform Act.

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