Understand Your Rights. Solve Your Legal Problems
Reviewed October 2025 by Lawyer Monthly Editorial.
This article is for general information only and does not constitute legal advice.
Renting without the right licence can cost landlords tens of thousands of pounds—and even senior ministers aren’t exempt.
When Chancellor Rachel Reeves let her Southwark home without securing a Selective Licence, she risked a £38,000 Rent Repayment Order (RRO). The case has become a textbook reminder that the UK’s housing laws apply equally to everyone—landlord, tenant, or Cabinet member.
How confident are you that your own property paperwork would stand up to the same scrutiny?
To understand how Reeves found herself in breach, it helps to unpack what selective licensing actually demands of landlords.
Under Part 3 of the Housing Act 2004, selective licensing allows councils like Southwark to regulate private landlords in designated areas.
Failing to hold a licence is an offence under Section 95, and tenants can reclaim up to 12 months’ rent through a Rent Repayment Order under Sections 40–44 of the Housing and Planning Act 2016.
Key point: The offence is strict liability—intent does not matter. If the property is unlicensed, the landlord is responsible.
In Fowles v London Borough of Barnet [2024] UKUT 168 (LC), the Upper Tribunal ruled that an agent’s knowledge of licensing requirements is legally attributable to the landlord.
In Reeves’ case, the July 2024 email confirming the need for a licence likely counts as notice in law, even if she never saw it directly.
This ruling highlights a crucial reality: delegation does not remove liability. Once an agent is aware of a licensing duty, the landlord is deemed aware too.
The Ministerial Code (2023) requires ministers to “uphold the highest standards of propriety.”
Reeves’ admission that she misinformed the Prime Minister prompted review by Sir Laurie Magnus, Independent Adviser on Ministerial Standards.
His conclusion—that the lapse was “unfortunate but inadvertent”—avoided disciplinary action.
“In selective licensing enforcement the general principle is clear: ignorance of the requirement is no excuse. Whether you are a minister or a private landlord, failure to obtain a licence under the Housing Act exposes you to strict liability and potential repayment orders.”
— Dean Underwood, Cornerstone Barristers
If Southwark Council enforces, Reeves could face:
A civil penalty of up to £30,000 under the Housing and Planning Act 2016, and
A Rent Repayment Order refunding up to 12 months’ rent.
Tenants may also apply independently to the First-tier Tribunal (Property Chamber).
According to Department for Levelling Up, Housing & Communities data (2025), RRO claims in London have risen 38 percent year-on-year, with Southwark among the most active boroughs for enforcement.
For landlords, avoiding similar penalties comes down to paperwork, timing, and proof.
Confirm licensing boundaries using your council’s official GOV.UK tool.
Apply before letting. Retrospective applications do not erase liability.
Document all communications with letting agents and councils.
Seek legal advice early; prompt action may reduce fines.
For details on Southwark’s specific requirements, visit the Southwark Council Licensing Portal.
While Sir Keir Starmer quickly declared the matter “resolved,” the case illustrates how public officials remain bound by housing law.
For private landlords, the lesson is clear: reliance on agents or good faith does not replace compliance.
Did you know? Councils can order repayment even if your agent forgot to apply for a licence.
| Legal Area | Statute / Case | Jurisdiction |
|---|---|---|
| Selective Licensing | Housing Act 2004 (Part 3) | England & Wales |
| Rent Repayment Orders | Housing & Planning Act 2016 (ss. 40–44) | First-tier Tribunal (Property Chamber) |
| Agent Knowledge | Fowles v LB of Barnet [2024] UKUT 168 (LC) | Upper Tribunal (Lands Chamber) |
| Ministerial Conduct | Ministerial Code (2023 ed.) | Cabinet Office (UK Gov) |
Q1. What triggers a Rent Repayment Order in England & Wales?
An RRO applies when a landlord lets a property in a selective-licensing area without a valid licence. Tenants can reclaim up to 12 months’ rent through the First-tier Tribunal.
Q2. Can a landlord avoid penalties if an agent failed to act?
No. The Upper Tribunal confirmed that an agent’s knowledge is imputed to the landlord. Failure to supervise an agent is not a defence.
Q3. How can landlords reduce risk after discovering non-compliance?
Apply immediately, disclose to the council, and seek professional legal advice. Early cooperation may mitigate fines.
Rachel Reeves’ situation is more than political—it’s procedural. The case underscores that Selective Licensing Law is strict-liability: ignorance or delegation offers no defence.
Whether you’re a government minister or a private investor, failing to comply can mean repaying a year’s rent and risking a £30,000 penalty.
Check your property, confirm your licence, and make sure you’re compliant—before a council or tenant forces the issue.
