Rachel Reeves admits to breaking housing laws after renting out family home

She has also informed Sir Keir Starmer.

Ms Reeves failed to obtain a rental licence when she placed her family home in Dulwich on the rental market last year, as she moved into No11 Downing Street with her family in July, according to the Mail.

A spokeswoman for Ms Reeves said: "Since becoming Chancellor, Rachel Reeves has rented out her family home through a lettings agency.

"She had not been made aware of the licencing requirement, but as soon as it was brought to her attention, she took immediate action and has applied for the licence.

"This was an inadvertent mistake and in the spirit of transparency, she has made the Prime Minister, the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards aware."

Ms Reeves, who owns a four-bedroom detached house in South London, put the property on the market for £3,200 a month last year.

She has received rental income since September 2024.

This means the Chancellor has made £44,800 from the property, approximately higher than the income of nearly 80 per cent of the population, data suggests.

Her own constituents earn an average of £33,904 per year.

The local authority requires private landlords in the area to obtain a "selective" licence to rent their property.

Ms Reeves admitted that she was unaware of the requirement and has since applied for the license.

Conservative leader Kemi Badenoch told the publication that they were "very serious revelations".

She said: "If the Chancellor, who has spent months floating punishing tax hikes on family homes, has at the same time seemingly been profiting from illegally renting out her house, that would make her position extremely tenuous.

"The Prime Minister must launch a full investigation. He once said 'lawmakers can’t be lawbreakers'.

"If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act."

Ms Reeves is set to deliver her second budget as Chancellor on Wednesday, November 26, during which she is expected to announce significant tax rises.

There is increasing speculation that the Chancellor may break manifesto promises, including raising income tax.

The last Labour Cabinet minister to refer themself for alleged rule-breaking was Angela Rayner in September 2025.

The then Deputy Prime Minister quit the Government following the outrage over the stamp duty scandal after she was found by Sir Keir Starmer‘s ethics chief to have broken the ministerial code.

She has since claimed she is considering paying back the taxes she owes, stating: "There is no excuse not to pay taxes owed, and I will do so."

GB News has reached out to Ms Reeves for a comment.

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