The estate agent who handled the rental of the Chancellor’s South London home has taken the blame for the failure to secure a selective license for the property while she lives in Number 11.   

Estate agents Harvey & Wheeler claimed responsibility for the “oversight” by not applying for a licence on her behalf, despite having agreed to do so. 

Rachel Reeves has come under pressure to resign from the Conservative opposition after it emerged she rented her Dulwich home, without obtaining a selective licence from Southwark Council, which requires one for the Dulwich Wood ward where it is based.

But Harvey Wheeler estate agent owner Gareth Martin said in a statement: “We alert all our clients to the need for a licence. In an effort to be helpful our previous property manager offered to apply for a licence on these clients’ behalf, as shown in the correspondence. 

“That property manager suddenly resigned on the Friday before the tenancy began on the following Monday. 

Martin added: “Unfortunately, the lack of application was not picked up by us as we do not normally apply for licences on behalf of our clients; the onus is on them to apply. 

“Our clients would have been under the impression that a licence had been applied for. Although it is not our responsibility to apply, we did offer to help with this.” 

Downing Street last night released an email exchange between Rachel Reeves’ husband and the estate agent regarding the transaction. 

In a key part, the property agent writes: “I’ll get the PAT Test [portable appliance test for electrical appliances] also — I will do the selective licence once the new tenant moves in as I won’t need to do this just yet.” 

Reeves also wrote to Prime Minister Keir Starmer again last night. 

She renewed her apology and said: “Today, the letting agency and my husband have found correspondence confirming that on 17th July 2024 the letting agent said to my husband that a Selective Licence would be required and agreed that the agency would apply for the licence on our behalf. 

“Nevertheless, as I said yesterday, I accept it was our responsibility to secure the licence. I also take responsibility for not finding this information yesterday and bringing it to your attention.” 

The government will hope this will take the sting out of attacks on Reeves, who is due to present her second Budget on 26 November. 

But opposition parties have kept a focus on the issue, with Conservative leader Kemi Badenoch insisting that the Prime Minister launch a “full investigation”.  

A Conservative spokesperson added: “Last night Rachel Reeves said, ‘she had not been made aware of the licensing requirement.” 

“Today, we find out that Reeves was alerted to the need for a licence in writing by the estate agents. 

“Having been caught out, the Chancellor is now trying to make the estate agents take the blame, but Reeves never followed up with them to ensure that the licence had been applied for, or checked if the licence had been granted.” 

The storm arose after Reeves referred herself to the independent ethics adviser Sir Laurie Magnus after admitting her error to the Prime Minister following a story by the Daily Mail.   

However, Starmer said that after consulting with the ethics adviser, the “inadvertent” failure to secure a licence, which she has now sought to correct, it was “not necessary” to hold an investigation. 

The Chancellor put her four-bedroom detached house in Southwark on the market for £3,200 a month last year, and her register of interests states she has received rental income since September 2024.  

Southwark Council requires landlords to seek a selective licence for homes for rent in Dulwich Wood ward, where Reeves’ home is based.  

Councils can deem that an area needs a selective licence for a variety of reasons, including low housing demand, poor housing conditions, or high levels of crime.  

Southwark Council introduced selective licences across certain areas of the borough two years ago, which last for five years and cost £900.  

Renting a home in such an area without a selective licence is a criminal offence.    

Penalties include a civil fine of up to £30,000, prosecution and an unlimited fine, a rent repayment order and being added to the national rogue landlord database.  

The independent ethics adviser has taken action twice this year against ministers on breaches of the ministerial code involving property arrangements that have forced resignations. 

In August, homelessness minister Rushanara Ali left office after evicting tenants and hiking the rent on a property she owns by hundreds of pounds after a few months, which went against the Renters’ Rights Bill Labour passed into law this week.  

A month later, housing minister and deputy Prime Minister Angela Rayner resigned after admitting to underpaying around £40,000 in stamp duty on a £800,000 second home in Hove.